When renting a car, no good deed goes unpunished

Henry Lien/Shutterstock
Henry Lien/Shutterstock
After Chandra Bhandaru points out a few scratches on a Hertz rental, the car rental sends a bill — and then another bill. Now the company wants to refer the matter to a collection agency. What happened?

Question: I tried to be a good citizen when I rented a car recently, but I guess it backfired. I have been a longtime gold customer with Hertz. On a recent trip to Hawaii, I rented a vehicle from Hertz. I had a little accident and had scratches on the rear. When I returned the car, the agent did not notice anything, but being a loyal customer, I volunteered information to the agent and filled out a claim form.

Four months later I got a letter from Hertz regarding damages, and paid those through the insurance coverage on my American Express card. But now I’ve received another letter from Hertz claims services, saying that I still owe $420 in damages.

American Express is willing to pay the amount and is requesting proof of payment to the body shop, but the claims person is not willing to provide it. I am at a loss here.
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Losing it over car rental “loss of use”

Oilly/Shutterstock
Oilly/Shutterstock
After Ben Harris dropped off his Mazda 3 rental at the airport in Maui last December, a Hertz agent pointed to some scuffed paint on the underside of the front bumper. Although the employee asked Harris to fill out an incident report, he assured Harris that it was just a formality and that he wouldn’t get a bill for the damage.

But six months later, Harris received a repair bill for $570. Among the charges was a $62 fee for “loss of use” – a fee that Harris, a physician from Chicago, considers “unreasonable.”

Some drivers agree. Rental companies used to write off the time a car spent in a garage as an expense. But shrinking profits forced them to add a loss-of-use charge to their repair bills, which allows them to recover the revenue they would have collected if the vehicle had been rented.

“Car rental companies were leaving tens of millions of dollars on the table by not collecting loss-of-use charges,” says Neil Abrams, a car rental consultant. “I think there’s a recognition that there’s a legitimate responsibility of the renter that extends beyond the rental of the vehicle.”
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