Hertz Rental Car Company is settling a massive lawsuit to the tune of nearly $170 million dollars. This dispute centers on claims from customers who say they were wrongly accused of stealing a Hertz rental car. More than 300 customers filed complaints.

More than 300 claims were filed against the company. The allegations center around reports that Hertz rental cars were stolen. But these customers actually had rented the vehicles. Company executives say a computer glitch led to the confusion.

Some of the customers were even arrested and charged with auto theft. One woman says she was held in jail for 12 days as a result of the allegations.

Arkansas resident, Jonathan Olivares was traveling to Houston in March of 2018, when he was pulled over just outside of Shreveport. He says he spotted the flashing blue lights and pulled over. Olivares says the officers "yelled and screamed - get out of the car, put your hands up.” He complied. He was hauled off to Caddo Parish Correction Center on a charge of auto theft.

Olivares says the car was rented by his employer and the situation was ultimately cleared up. But he says he was humiliated as the officers handcuffed him and hauled him off to jail. He says he was tossed into a cell the size of a bathroom with 2 other inmates.

He says “I had a valid corporate lease agreement.”

His girlfriend was able to get in touch with his employer, who bonded him out of jail the next day.

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How Did Hertz Respond?

Executives from Hertz contacted him the next day to let him know they were investigating how this mix up happened.

But Olivares is not the only person impacted. It turns out hundreds of people faced similar issues. Hertz has faced lawsuits in several states including Texas and the Olivares suit in Arkansas.

Olivares says he is also battling the legal system in Louisiana where he can not get his arrest expunged.

Hertz CEO Stephen Sherr says:  

While we will not always be perfect, the professionals at Hertz will continue to work everyday to provide best in-class service to the tens of millions of people we serve each year. Hertz filed for bankruptcy in 2020 and the bulk of this settlement will come from the company’s insurance carriers. 

Hertz claims there was a computer glitch for not properly recording rental extensions.

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