Hertz promised futuristic scanners would end rental car disputes — but the company is now admitting they make mistakes. 

At ten Hertz airport lots, renters drive through a carwash-like tunnel where high-resolution cameras snap thousands of pictures.

The system flags dents and scratches in seconds, replacing old clipboard walkarounds, and emails or texts fees to customers.

However, the rollout has turned into a public relations fiasco, with customers abandoning the rental service after highly sensitive cameras flagged minor dings that the human eye might overlook — or, sometimes, damage that didn’t even exist.

Adam Foley, a once-loyal customer, rented a Buick Encore in May and was slapped with a $285 bill, comprising two $80 repair fees and almost $200 in processing costs.

Foley maintains he did not damage the SUV. The Daily Mail forwarded images of the alleged damage to collision repair specialists — who identified one of the charges as merely a patch of dirt.

For three months, Foley received automated emails warning he could be liable for legal fees and was offered a discount if he paid immediately. Hertz even requested his insurance information, which Foley refused, worried about premium hikes. 

Then, two weeks ago — just as Hertz provided the Daily Mail with a statement defending the scanners — the company quietly canceled his charge. Foley never paid a cent.

So far, the Daily Mail has spoken to 11 customers who complained about Hertz’s scanning systems

The about-face is notable because Hertz had previously told NBC News it found ‘billable damage’ on his car. 

Hertz, America’s second-largest rental company, says the scanners introduce ‘much-needed precision, objectivity, and transparency.’ It now says the cancellation reflects ‘listening, learning, and improving.’

Customers who received charges disagree.

‘I’m glad to see they are seemingly giving up the fight,’ Foley told the Daily Mail. He still refuses to use the company ever again. 

And, this isn’t the first time Hertz has cancelled a customer’s damage fee. 

In April, a US Navy sailor named Nadia received a $935 fee for damage she insists never happened. Hertz dropped her bill in August after she went public, with the company saying that ‘discrepancies are the exception.’

So far, the Daily Mail has shared details of four customer complaints with Hertz. Half of those complaints have now been cancelled. 

The company believes the tech is working. A spokesperson said more than 675,000 rentals have now been scanned, and less than 3 percent show billable damage, according to the company. 

The AI scanners, made by AI startup UVeye, are rolling out at rental lots across the US

So far, Hertz has reportedly started using the scanners on at least seven rental lots

That figure, Hertz says, is ‘consistent across all rentals, regardless of the inspection process.’

However, when pressed, Hertz declined to share any details about how it came to the three percent estimation.  

The company also wouldn’t disclose how many customers have complained about UVeye inspections – leaving it unclear whether the futuristic system is actually reducing disputes.

And, the company has repeatedly evaded answering whether every car that incurs a damage fee gets fixed.

‘To provide our customers with a safe and reliable fleet, Hertz regularly services and repairs vehicles,’ the company said. 

‘If damage is too extensive, we will not repair the vehicle and remove it from our rental fleet for safety and commercial purposes.’ 

UVeye, the Israeli startup behind the technology, offered its own assurances. 

‘Our inspection systems are designed to make the rental process fairer, faster, and more transparent,’ a spokesperson said. 

But the tech company also sidestepped questions about how it defines billable damage or what recourse customers have if they challenge a scan. 

The AI scanner picked up two small ‘dents’ on Foley’s Buick rental – collision repair experts disagreed with the assessment

The system asked Foley to pay up $285 for the fees – Hertz, which has consistently told Daily Mail that it doesn’t charge for dents larger than a golf ball – cancelled the fine. 

As the systems roll out in more locations – it’s been spotted at airports in Atlanta, Charlotte, Houston, Boston, Newark, Phoenix, and Tampa Bay – more customers are getting charged. 

So far, the Daily Mail has spoken to 11 renters who say they were incorrectly charged by the scanners.

Those fees inspired action in the nation’s capital: the House Oversight and Government Reform Committee has requested additional information from the company, and a subcommittee on cybersecurity has asked for an interview with company executives. 

Meanwhile, scanners are also being rolled out at more rental companies. 

Sixt, a car-for-hire service with 100 locations across the US, is also rolling out AI-based vehicle scanners. 

So far, their system is making mistakes. The company apologized after charging a customer $600 for damage that was already on his rental. 

There are fears Avis will adopt similar tech. Meanwhile, Enterprise — America’s biggest rental firm, which owns National and Alamo — is testing it in Europe. 

For now, Hertz insists the vast majority of renters never face damage charges. 

But until the company shares hard numbers – and proves customers can actually get a human on the line – customers say the scanners look less like transparency, and more like a high-tech headache.

‘At Hertz, we strive to get it right for every customer — and when we fall short, we work to make it right,’ a spokesperson for Hertz said. 

‘Since we began this initiative, we’ve been listening, learning, and improving. In that spirit, and to reflect the progress we’ve made, we have waived the customer’s damage costs.’