Adam Foley returned a rented Buick to Hertz. Two hours later, an AI message asked him to fork over $285.
Before handing over the keys, he’d driven the SUV through a high-tech archway outfitted with cameras, LED lights and AI-powered sensors.
That scanner, built by AI startup UVeye, flagged two small spots – both on the hood – and determined they were dents. Foley believes they were just dirt.
Hertz tells the Daily Mail the AI-powered scanners are meant to boost vehicle safety. But customers claim they’re being hit with unfair charges for minor dings, and independent experts warn the system lacks transparency.
The Daily Mail asked Hertz multiple times whether customer damage fees actually fund vehicle repairs. The company has not responded.
Screenshots of Foley’s charges, shared with the Daily Mail, show two $80 repair fees, plus $190 in administrative and processing costs. Hertz offered to knock $65 off if Foley paid immediately.
‘It’s a shakedown that is extremely off-putting,’ he said. ‘I used to view Hertz as one of the higher tier rental companies and my default, ideal choice.’
When he tried to dispute the charges, Foley said he was met only with an AI chatbot, not a human representative.
The AI scanner picked up two small ‘dents’ on Foley’s Buick rental
‘The «pay now at decreased cost» sliding fee system needs to be removed,’ Foley said.
‘The gimmick is clearly intended to scare your customer into rolling over and giving you some money to avoid needing to pay «more money.»‘
Independent experts are equally as worried.
‘This basically seems like a money-grabbing exercise by Hertz,’ Neil Saunders, a retail expert at GlobalData, said. ‘If there is no way to discuss with a human, then that is also extremely poor customer service.’
Foley is not alone. Several drivers have now publicly accused Hertz of using its new scanner system to issue steep charges for what the consumers call minor or questionable damage.
The company, which began deploying the scanners in April, confirmed to the Daily Mail that another driver received a $440 bill for a one-inch scratch on a wheel – the kind of blemish typically caused by bumping a curb.
Another renter said they were charged $190 for a small dent after returning a Toyota Corolla.
Online, frustrations are piling up.
Foley received a notification to ‘save big!’ if he paid the fine immediately
UVeye is a high-tech vehicle scanning company that can detect blemishes throughout a vehicle’s exterior
Hertz previously told the Daily Mail that the company was using the system to ensure vehicle safety – they’ve recently backed their right to charge customers for damages made during the rental
‘[I’ve] been a Presidential Member for a while and never had any issue before,’ a one-star complaint on Google claimed. ‘But this time, I’ve been charged extra for a pic that shows nothing?’
That reviewer did not respond to the Daily Mail’s request for comment.
Back in April, Hertz told the Daily Mail that the scanner rollout was intended to enhance vehicle safety, not penalize customers for cosmetic issues.
The company is currently running the scanners in Atlanta’s Hartsfield-Jackson International airport, and plans on rolling out 100 more across the country this year.
UVeye said its tech identifies undercarriage problems and tire wear that human inspectors often miss.
And Hertz said its damage policy hadn’t changed with the use of the technology, stating that only dents larger than 1 inch – roughly the size of a golf ball – would trigger charges.
The company said that it has a right to collect fees for damages incurred during a rental period.
But Foley, an AI analyst himself, says the flagged spots on his car were smaller, and ardently believes the hood didn’t incur damage.
The Daily Mail spoke to Zoriy Birenboym, the president of eAutoCollision, about Hertz’s $80 assessment for each dent. He called the fees a ‘very fair price.’
‘You have to use special dent repair tools and a lot of skills,’ he said about the alleged repair. ‘It’s time-consuming.’
However, not all collision experts that analyzed the images agree there is enough damage to charge.
Drivers have complained in public about the increased fees – analysts are worried the company is favoring ‘profits over people’
Adam Foley shared screenshots of the scanner’s findings – Hertz told the Daily Mail that it does not charge for dents larger than ‘1-inch, which is approximately the size of a golf ball’
‘Based on the UVeye scan, there appears to be a very minor dent visible only under enhanced lighting and reflection distortion,’ Alex Black, the chief marketing officer of EpicVIN, a vehicle history report company, said after looking at Foley’s pictures.
‘It’s plausible that the second fine is a reflection or a smudge, not an actual dent. In my experience managing returns at rental locations, this would not meet the threshold for chargeable damage at many independent shops.’
Black said he would quote $100 to $150 total for the fix.
Independent AI analysts also expressed skepticism about the rental company’s use of chatbots.
‘It is unacceptable that a resolution with a human is not possible,’ said Dr Ramnath Chellappa, a digital market expert and professor at Emory University.
‘The administrative charge is puzzling. If anything, AI should be reducing the human effort in assessment and walk-through with the vehicle; therefore, it should end up offering cost savings.’
Without transparency, experts say, Hertz risks losing the loyalty of frequent customers.
‘There should be a grace period on AI-detected damages, where Hertz associates can review the damages and decide if the fees are appropriate,’ Jason Madden, a Pittsburgh-based business management consultant, told the Daily Mail.
‘They should also provide a clear appeals process that, at least for the time being, leans in favor of the consumer.’
If those changes aren’t made soon, Madden warned, the program may be viewed as prioritizing profits over people.
For now, Foley said he won’t pay the fees – he has no qualms about the impact.
‘If not paying it means I can’t rent from Hertz anymore, so be it,’ he said. ‘There are plenty of other rental companies out there.’
