Hertz customers are expressing outrage after being charged significant fees for minor vehicle damages detected by the company’s new artificial intelligence-powered scanner. The technology, implemented at Hertz’s Atlanta airport location, has led to complaints about the lack of recourse available to dispute these charges.
Patrick, a customer who rented a Volkswagen from Hertz-owned Thrifty, was billed $440 for a minor scuff on a car wheel. The charge included $250 for the repair, $125 for processing, and $65 for administration. He received the bill just minutes after returning the car, raising concerns about the immediacy and fairness of the charges.
AI Technology and Customer Complaints
The introduction of UVeye technology, an AI-driven scanner developed by an Israel-based firm, is at the heart of the controversy. Hertz customers are provided with photographic evidence of the damage, but many find the process of disputing these charges cumbersome. Customers are directed to a web portal to view images, but interaction with live customer service is limited.
Patrick, who attempted to resolve the issue, found the process frustrating. Options are limited to a chatbot or email, with responses taking up to ten days, often after early payment discounts expire. One Reddit user, under the handle professor_pimpcain, shared a similar experience, stating, “It automatically sent me a bill for this ‘ding’. $195.”
Transparency and Fairness Concerns
Many customers have criticized the lack of transparency in how fees are calculated. Hertz claims the processing fee covers the cost of detecting and estimating damage, while the administrative fee covers part of the costs incurred by processing claims. However, these explanations have been deemed vague by customers who feel pressured by the AI system’s rapid fee generation.
“The vast majority of rentals are incident-free. When damage does occur, our goal is to enhance the rental experience by bringing greater transparency, precision, and speed to the process,” Hertz stated in defense of the system.
Despite Hertz’s assurances, some customers view the system as a revenue-maximizing tool rather than a fair assessment method. The AI’s ability to generate immediate fees, coupled with limited dispute options, has left many feeling dissatisfied.
Broader Implications and Future Prospects
Hertz’s partnership with UVeye marks a significant shift in how rental car damage is assessed. By the end of the year, Hertz plans to have over 100 AI-powered scanners at US airport locations. While Hertz is currently the only major rental company using this technology extensively, UVeye’s systems are already utilized in other automotive sectors, including by companies like General Motors and Amazon.
UVeye’s technology has been described as an “MRI for vehicles,” capable of performing full-body scans in seconds to detect damage such as dents, scrapes, and cracked glass.
As Hertz continues to roll out this technology, UVeye is reportedly in discussions with other rental agencies, suggesting that broader adoption of AI-driven damage assessment may be imminent. However, the controversy surrounding Hertz’s implementation highlights the challenges of integrating advanced technology with customer service.
Historical Context and Ongoing Challenges
Hertz has faced scrutiny in the past for its handling of customer charges. The company has previously been criticized for billing electric vehicle renters for gasoline due to a system error and for charging a customer $10,000 for mileage on an “unlimited-mile” rental. In 2022, Hertz was sued by five customers who were wrongfully arrested for allegedly stealing cars they had returned.
The current backlash over AI-driven damage charges underscores the ongoing tension between technological advancement and customer satisfaction. As Hertz and other companies continue to explore AI solutions, the need for transparent and fair customer service practices remains critical.
The Post has reached out to UVeye for comment on the situation, as the story continues to develop.
