Hertz agrees to pay $168 million to settle false theft claims
Rental car giant Hertz Global Holdings announced Monday it had agreed to pay $168 million to settle claims that it falsely reported its customers for theft after they didn't return their vehicles on time.
In a statement, Hertz said it would settle 364 outstanding claims related to the alleged erroneous theft reports, or about 95 percent.
CBS News first reported this past February that the rental car company was facing hundreds of lawsuits from customers who claimed to have been falsely arrested for auto theft after Hertz reported they stole their rental car. However, a large portion of the reports made by Hertz were allegedly false, and reportedly even led to some customers receiving arrest warrants in states they had never visited.
Bloomberg reported that many of these customers were detained by police — often at gunpoint — and ended up spending time in jail.
"As I have said since joining Hertz earlier this year, my intention is to lead a company that puts the customer first. In resolving these claims, we are holding ourselves to that objective," Hertz CEO Stephen Scherr said in the statement. "While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service."
Scherr said earlier this year that the false reports were based on a glitch in the company's system, according to The Associated Press, and that Hertz was working to identify and fix it.
The company has said that it normally investigates overdue cars for about 63 days before involving law enforcement.
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