{"id":23493,"date":"2022-12-14T20:02:06","date_gmt":"2022-12-14T20:02:06","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/14\/hertz-shells-out-168-million-to-settle-364-false-theft-reports\/"},"modified":"2022-12-14T20:02:06","modified_gmt":"2022-12-14T20:02:06","slug":"hertz-shells-out-168-million-to-settle-364-false-theft-reports","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/14\/hertz-shells-out-168-million-to-settle-364-false-theft-reports\/","title":{"rendered":"Hertz Shells Out $168 Million To Settle 364 False Theft Reports"},"content":{"rendered":"

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from the addresses-a-symptom-but-not-the-underlying-problem<\/i> dept<\/h3>\n

All\u2019s well<\/s> OK that ends well<\/s> OK. Months of reporting<\/a> tied to lawsuits<\/a> filed by Hertz renters falsely accused of theft<\/a> should now come to a halt. Maybe. <\/p>\n

Here\u2019s the company\u2019s statement<\/a> on the multi-million dollar settlement, which doesn\u2019t say much about Hertz\u2019s culpability, nor any plans it has in place to prevent something that has only occurred with this<\/em> rental company from happening again. <\/p>\n

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Hertz Global Holdings, Inc.\u00a0(NASDAQ: HTZ) today announced the settlement of 364 pending claims relating to vehicle theft reporting, bringing resolution to more than 95% of its pending theft reporting claims. The company will pay an aggregate amount of approximately\u00a0$168 million\u00a0by year-end to resolve these disputes.\u00a0The company believes it will recover a meaningful portion of the settlement amount from its insurance carriers. \u00a0<\/em><\/p>\n

\u201cAs I have said since joining\u00a0Hertz earlier this year,\u00a0my intention is to lead a company\u00a0that puts the customer first. In resolving these claims, we are holding ourselves to that objective,\u201d said\u00a0Stephen Scherr, CEO of\u00a0Hertz. \u201cWhile we will not always be perfect, the professionals at\u00a0Hertz\u00a0will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year. Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience.\u201d<\/em><\/p>\n<\/blockquote>\n

First, it\u2019s only \u201c95%\u201d of pending theft reporting claims, which means the company is still somewhat tied up in litigation. <\/p>\n

Second, while it may hurt Hertz a bit to cough up roughly a half-million per bogus theft claim, it appears it won\u2019t hurt much. Apparently, its insurance carrier will be footing the bill, which means as long as its insurers are willing to cover costs related to horrendous inventory control practices, there\u2019s really no deterrent in place to prevent this sort of thing (a sort of thing extremely particular<\/em> to Hertz) from happening again.<\/p>\n

Third, the CEO\u2019s statement portrays the false arrest of people as a commonplace customer service failure, rather than the potentially deadly<\/a>, life disrupting<\/a> experience it is. <\/p>\n

Fourth, the plans for \u201cmoving forward\u201d do not address the underlying issues. Instead, the CEO touts a future full of app usage and electric vehicles, something that\u2019s apparently meant to make us forgive its recent past full of sloppy inventory control<\/a>, outsourcing of repo work<\/a> to local cops, and a reputation for converting honest renters<\/a> into criminals. <\/p>\n

The statement also says nothing about the company\u2019s unwillingness to drop bogus prosecutions<\/a> of renters despite being sued multiple times.<\/p>\n

While it\u2019s not unexpected to see a corporation present a cheery veneer when cranking out press releases, there\u2019s nothing in this that suggests Hertz won\u2019t keep doing what Hertz has been doing. The CEO promised to clean this mess up, but he\u2019s the same person who hasn\u2019t explained why his company has allowed prosecutions over bogus theft reports to proceed even though Hertz was aware the reports were false. Digging into an insurer\u2019s pockets to pay off people the company has wronged doesn\u2019t offer any assurance the company will do the right thing in the future. <\/p>\n

\nFiled Under: rental cars<\/a>, settlement<\/a>, theft<\/a>
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Companies: hertz<\/a>\n<\/p>\n<\/div>\n