Car Rentals: Buyer beware, or you’re out of luck

It’s Your Money

By Maureen Milliken


Renting a car has never been a laugh riot, but over the past few years it’s become a costly exercise in frustration for many consumers. Long lines at pickup, your “reserved” cars not available, long lines at drop-off, junk fees, fees for damage you didn’t cause, accusations of missing and stolen cars – you name it, American consumers are getting hit with it.

The sad news is that car companies are, for the most part, getting away with it. I’m a big advocate for blaming the perpetrator, not the victim. But you’ll find in the car rental industry, the customer (potential victim) has to be on guard from the word go. Actually, before the word go. 

Most of us don’t rent cars frequently. The rare time we do, we expect it to go smoothly. 

If you read no farther today, take this away: If you’re going to rent a car, arm yourself with knowledge, cynicism, and a charged and working cellphone camera.

Things have changed

I haven’t rented a car in years. Last time I did, when I returned it, the attendant spent a lot of time checking over the car while I was there, then issuing me a detailed receipt. I joked at the time it was worse than buying a house. But I also knew that both of us there, going over it, meant that I wouldn’t have to deal with false claims later.

Things have changed in 20 years. Not for the better in many ways. With everything digital it’s easy to assume things are more organized and accurate. Guess again. 

Many consumer complaints about car rentals can be tied to the return process, or at least sparked by it. More generally, a lack of attention and ability to communicate by the agency is also the root of many complaints.

Given all the things car rental agencies can ding you for upon returning a car – damage, not filling the tank, returning it to the wrong location, missing the return deadline – I was stunned to learn that they are not required to issue a hard-copy receipt and documentation directly upon return of a car.

Most car rental agencies, particularly at busy airports, have “express return.” This involves the rental agent scanning a bar code in the windshield or rear window, or the renter leaving the keys off in a drop box.

If you look online for rules that car rental companies must adhere when accepting returns, it’s hard to find anything. But man are there are lot of rules for the people who rent the cars.

Point of no return

Two years ago, more than 200 Hertz customers sued the company after they returned their cars or were approved for an extended rental, but the company couldn’t “find” the cars and claimed they were stolen. Some of these customers were charged exorbitant fees, some were even charged the price of the car. Some were arrested. 

“It’s not acceptable to Hertz to have any customer, a single customer, caught up in what’s happened,” Stephen Scherr, the company’s CEO, told CNBC at the time. But he added, “I think it’s important to put in context, which is if you look at the number of people that were impacted in this situation.” 

If you’re Hertz, yeah, fine. But if you’re the one person with the huge bill or sitting in a jail cell, that context means nothing.

U.S. Sen. Richard Blumenthal, D-Connecticut, who took up the cause, at the time accused Hertz of “abysmal record-keeping.” That’s an understatement.

Hertz also owns Dollar and Thrifty rental car agencies and, among them, owns about half a million cars. That’s a lot of cars to keep track of. I get it. But it’s 2024, and there are ways to keep track of things.

In December 2022, Hertz Global Holdings settled 364 claims related to false vehicle theft charges totaling $168 million. Before the settlement, Scherr said that the company was working to fix a “glitch” in its systems that listed returned vehicles as stolen, or incorrectly listed a customer as not paying. 

You’d think after all that, Hertz and other car rental companies would pay more attention to properly recording returns and keeping track of their cars. No one’s being arrested at gunpoint anymore on false rental car theft charges (that we know of), but from looking at online customer complaints, it doesn’t seem like rental car agencies are doing any better at it than before the lawsuit.

In recent years, car rental companies have started putting bar codes on their cars, usually in the corner of a windshield or rear window. They’re scanned by the rental agent when the car is returned, which supposedly updates the system immediately on mileage and fuel level, and keeps better track of inventory. And yet…

A relative of mine had a recent experience that shows a huge flaw in this system, as well as an appalling lack of attention by the humans on the other side of the scanner. In the end, it shows how you can have all the technology in the world, but if you don’t care that much, it’s wasted.

My relative rented a car at the Denver airport in July so she could visit someone about an hour away. During her two-day visit, the car sat in her host’s driveway. Then she drove it back to the airport to return it.

When she arrived at the airport, there were several car rental agencies all lined up, all with long lines of cars. She didn’t realize it at the time, but she got in the line for Dollar, when the car was rented from Budget. The two companies are right next to each other. 

Yes, her mistake. Like many people, she doesn’t rent cars often, she was anxious about being late because of the traffic, which was horrific, and the car rental area was a Charlie Foxtrot that didn’t give people unfamiliar with it that much time to sort things out.

The agent rapidly scanned the bar code, told her that she’d get an email receipt, and went on to the next car. 

She expected to pay $400-$500 for the rental. Imagine her surprise when she was charged $7,250 by Budget.

She’d had no clue until she was charged three weeks after she returned the car that she’d brought it to the wrong agency. According to Budget, the car was returned Aug. 9. She returned it July 20.

My first question was: “Why didn’t the guy with the scanner notice it was a Budget car not a Dollar car?” More than a decade ago I worked in the returns department of a major Maine-based retailer. I knew within seconds if the item I’d just scanned came from another store and wasn’t one of ours. And you know what? We sent it to the right store. That day.

Even if the scan by the Dollar rental agent didn’t get an error message, isn’t he supposed to check what he’s just scanned in?

Dollar (a subsidiary of Hertz) doesn’t think so. Not our problem, they told my relative.

You’d think it would be, right? How can the car rental agency accurately assess damage, for instance, if they’re doing so little checking that they don’t even make sure it belongs to them? Anything can happen to that car in a busy airport lot once my relative steps out and hands the keys over (that don’t, by the way, even have an identifying key ring or fob).

My relative got her credit card company to hold off on the charge while it investigated. She even acknowledges her mistake and that she may have some financial responsibility for it, but $7,250? Give me a break.

I, for one, don’t agree that she owes any more money than what it would’ve cost her to rent the car. It’s easy to judge – she brought it to the wrong lot! 

But where is Dollar’s responsibility for scanning in a car and not noticing it didn’t belong to them? If the Dollar rental agent was doing his job, he should’ve recognized immediately it was a Budget car and sent her off to the right place. Why didn’t Budget contact her when it didn’t get the car July 20 as promised? How does it sit (presumably) in Dollar’s lot from July 20 to Aug. 9 with no one knowing it doesn’t belong there?

Lots of questions that they’re not going to answer.

My relative isn’t the only person this has happened to. I spent the afternoon on the internet reading similar stories in which people returned a car to the wrong agency (almost always at a traffic nightmare airport), or the right agency, but wrong location. In most instances, they got no relief. It some, where a consumer advocate activist got involved, the car rental agency caved.

Even though I write about consumer issues, I admit I was naïve about this stuff. I knew there have been a lot of rental car complaints, but didn’t realize there are so many issues and so little accountability by the businesses.

I didn’t realize what a hellscape car rentals had become.

The hellscape that is the car rental experience

Here are some recent car agency complaints to the Better Business Bureau:

A Budget customer canceled a reservation within the time frame to get a refund. Budget told her to expect it in 5-10 days. When she didn’t get it after 12, she called. Budget said it had been processed days before. Yet, the consumer never received it. What DID she get? A $987.88 cancelation fee.

“I should be receiving my full refund as I cancelled before my pick-up time, local time,” she wrote to the BBB. “Budget refused to send me any proof of their refund to me, so I have nothing but their word, and mine to go off of.”

Three days after the customer contacted the BBB, Budget found the problem and issued the refund.

Another Budget customer was charged for extra days they didn’t have the car; for returning the car to the “wrong” location after it broke down and they had to surrender it to Budget’s roadside assistance and it was towed there; and receiving an incorrect receipt that didn’t reflect their transactions with Budget.

After the complaint to the BBB (previous attempts by the customer to get it resolved through Budget were not successful), the customer got a refund.

An Enterprise customer received a bill for damage to a car that the customer had returned undamaged. When she and her husband returned it “the agent never came out to inspect the vehicle, nor did they provide any receipt of any kind. We had no communication with anyone until receiving (the bill).” On top of it, the address shown on the bill was not the customer’s.

Enterprise resolved the issue after the BBB complaint.

Here’s one from Thrifty that I’ll let the customer tell (with editing for length and clarity):

“We arrived at the airport to pick up the car, the rep asked about additional insurance, we declined. He then told us there would be a $200 hold on card until the car was returned, we agreed to that and signed for that and only that. 

“Upon leaving the airport we noticed the windshield was cracked and gas gauge did not work in the car. We called customer service and let him know about the windshield and he said we did not need to come back, he would note that in the file so we wouldn’t be charged for it. He asked us to just keep track of mileage so we would know when we needed gas since the gauge did not work. 

“Driving to our first destination, I got a notification that $524 was charged to my credit card. Once we got to our first destination we realized the odometer was not working properly, so I called the customer service and spoke to (name redacted), she advised us to call roadside assistance to create a ticket to exchange the car and that I was charged twice for the car, but she couldn’t credit it until the reservation was closed and advised I call back once I return the car. 

“I called roadside assistance to exchange the car. We drove back to the airport to exchange the car. The second car they gave us had wet seats, so had to exchange for third car (process took two hours). Manager said he could not fix double charge, above his ability level we needed to call corp customer service, they could credit us the $324.17 for the second charge.”

Once home, the renter called customer service, and they said they couldn’t credit his card and he had to call another number or start an email. He called the other number and they said corporate had to do it, and gave them yet another number to call.

“We have wasted multiple hours trying to get a working car and get duplicate charges reversed,” the customer said. All they wanted was the $324.17 overcharge to be credited to their credit card.

We’ll never know if this was resolved. Thrifty doesn’t answer BBB complaints.

Not to just pick on a few companies – most car rental agencies have similar complaints. Many are things like:

  • Upcharges that weren’t approved by the customer.
  • Accusations of damage or cigarette smoke, some months after it was returned, that the customer disputes and, in many cases, the car rental agency doesn’t have documentation of.
  • Issues with refunds and cancelations when using a third party to book the car (like Priceline or AAA).
  • Bait and switch on a reservation – reserving a cheaper car and getting stuck with a more expensive one, then being charged for it.
  • Rental cars breaking down and the customer having to wait, in some cases days, to get it resolved.
  • Customer service not answering the phone, causing a domino effect of late returns and other issues.
  • Being put on the no-rent list without being told why, and, in some cases, erroneously.
  • Being charged a late return fee because the line for returns was so long the customer  missed the 45-minute grace period, or they returned the car on time but were charged a late fee anyway.
  • Being charged for fuel, even though the tank was full.

It’s hard to quantify car rental complaints. There are a lot of complaints, but it’s mostly anecdotal. The Federal Trade Commission two years ago set up an ombudsman panel to conduct car rental investigations. Since then, there’s been no public information that I can find on what, if anything, the panel has done. In fact, if you Google “FTC car rental complaints” the page that comes up first is one that lists FTC action against car rental agencies in the 1970s.

What can you do about car rental issues?

My relative who had the issue with Budget and Dollar sent certified letters to Dollar, Budget, the attorney general in Colorado, where she rented the car, as well as the Better Business Bureau in Colorado. 

Dollar is the only one that responded and, as I said, their reply was basically “not our problem.” Not a problem that their employee accepted a car that belonged to Budget.

As I was writing this, my relative texted me and said her credit card company has upheld Budget’s charge. “So now Budget has their money and doesn’t care,” she said.

She’s out $7,250.

Again, it’s easy to say it’s her mistake, so she has to pay for it. But it could happen to you. Picture one of the busiest airports in the country, the traffic, what the car rental area looks like. A rental agent rushing people through. It’s an easy mistake to make. It’s one that should be caught. 

Car rental companies are not going to suddenly stop ripping people off, since no one is doing much about it. They’re not even going to start instituting business practices that should be no-brainers in 2024.

So, it’s up to you. Here are some tips if you’re going to rent a car.

Before/when you pick up a car:

  • Do your research, including reading reviews, and find out which agency seems to have the fewest complaints.
  • Book your car rental directly, rather than using a third party. This erases one level of bureaucracy if you have an issue or need a refund. (You can still use your AARP or AAA, or other, discount code if you book directly.)
  • Read ALL the fine print – understand the cancelation policies, how much you will be paying, what the charges are. For everything. Do not sign anything until you’ve read it. (One company in a BBB complaint response smugly points out that a customer disputing an overcharged signed a contract and it’s legally binding).
  • Review the agency’s information on what to do if the car breaks down or you get into an accident. Know what the process is.
  • Reserve the car in advance, but don’t pay in advance, even if it’s cheaper.
  • When you pick up the car, take a video of the entire exterior and interior. If you see any dings, dents, seat stains, or anything else that may be a problem, zoom in on it and verbally note it.
  • DO NOT drive off the lot until you’ve checked the gas gauge, windshield wipers, headlights, tires and windshield to make sure everything’s working and not damaged.
  • If the car you reserved isn’t available, and you’re offered a more expensive one, get any agreement about price in writing.

Before/when you return a car:

  • Look up the return location and make sure you know where you’re going and how long it will take to get there, even if you picked the car up there and are certain you’ve got it down. Look the location up on TripAdvisor or another review app to see if there are any quirks that may make the return difficult. Be sure it’s the right location, even if it’s the same company. You can get charged $1,000 for bringing a car to the same company’s wrong lot.
  • Be sure you leave with plenty of time to make the return deadline.
  • Fill the tank as close to the return location as you can.
  • When you hand the car over, take a video of the gas gauge, the car’s exterior, the car’s interior, the tires, and the agent who is accepting the car. Ask him or her their name. Be friendly, but get it on video. They may be in a rush and want you to rush too. Don’t let them. You have a right to video the car.
  • DO NOT LEAVE WITHOUT A RETURN RECEIPT if possible. Ask, politely, for one if it’s not offered. If they can’t print one, ask the agent if the scanner showed that you returned the car and get his response on video. It may feel funny. Do it anyway. This is your receipt. Explain that to the agent if they aren’t happy about it and add that he should suggest to his employer that they offer receipts to customers upon return.
  • Do not return the car when the agency is closed if at all possible.
  • If there is an issue, be polite and professional. Get the interaction on video and tell them, politely, that you are taping because you want the conversation documented. [Many BBB responses from companies note that the customer became hostile or belligerent or swore, or that the agent told the customer something that the customer said they didn’t].

If you’ve been ripped off by a car rental agency, do all of these things:

  • Write (do not call) their customer service, corporate customer service and corporate offices. This way you have a paper trail and accurate records. Lay out your case clearly and professionally and provide any corroborating evidence that may be needed.
  • Notify your credit card company immediately and tell them you are disputing the charge (most credit card companies have an online form, and there’s also a phone number on the back of your card).
  • If you don’t get satisfaction from the car rental agency, report it to the attorney general of the state where you rented the car (some have online forms), as well as reporting to the Better Business Bureau’s complaint line and the Federal Trade Commission’s complaint line.
  • Give them a bad review on their website, as well as Google reviews, TripAdvisor and Trust Pilot. Make it clear and to the point.

Car agencies: Start doing business right

Car rental agencies will tell you the majority of their customers are happy and satisfied with their service. That’s all well and good, but it doesn’t mean the agencies shouldn’t try harder to  not separate working people from their hard-earned money. 

I have some suggestions for the agencies. Not that they’ll listen, but I’m going to put it out there. Some of them are responsible businesses that do the right thing. They may already do some of these things. This is for the ones that don’t. And they should consider the positives, that being a responsible and attentive business may save them money, red tape, and bad mojo:

  • Provide physical return receipts to all customers upon return of a car, or an instant text or email showing the charge that the customer can check before they drive away. And have your agent have the customer check. Someone’s returning something that’s worth five figures, and you don’t think it’s worthwhile to make sure it’s recorded accurately?
  • When an agent takes a return, have him make sure that the customer and car match what you’ve scanned.
  • Use your fancy bar codes and scanners to actually keep track of inventory and where your cars are. 
  • Pay enough attention to your business that a customer who returned their car on time and in the right place is not charged two weeks later for the next person’s days and miles.
  • If you can’t identify a car on your lot as not being yours in a short period of time (like a day), there’s something wrong with your system. Find a way to figure out where the car belongs and get it to them so someone doesn’t have to pay thousands for your lack of attention.
  • Even though you’re busy, find a system to assess damage upon return to cut down on false damage claims.
  • Do not charge a customer for damage, particularly if it’s weeks after they returned the car, without proper documentation.
  • Instill a sense of responsibility and accountability in employees, so customers aren’t falsely charged for damage they didn’t cause, overcharged for cars they returned on time to the right place, miles they didn’t drive, etc.
  • Get rid of junk fees and the fraudulent practices that seem to be business as usual for many car rental agencies.
  • Have a key fob that has the agency’s logo, like you did in the good old days. Have some indication on the car, besides that bar code, to what agency it belongs to. They stopped doing this years ago, apparently, because it “attracts thieves.” Now the only thieves are the ones running the companies.