House Oversight Investigates Hertz AI Damage Billing Nationwide

Hertz is facing government scrutiny over its use of AI-powered damage scanners developed by Israeli tech firm UVeye, which automatically bill renters for damages without human review. Customers have complained about being charged excessive fees for minor or nonexistent damage, with one renter reporting a $440 bill for a small scuff on a wheel. Rep. Nancy Mace, chair of the House Subcommittee on Cybersecurity, has sent a letter to Hertz CEO Gil West demanding a detailed explanation of how the system works, how damages are assessed, and why customers lack an effective appeal process. The controversy centers on Hertz being the only major U.S. rental company to issue damage charges solely based on AI assessments without human verification, raising concerns about fairness and accountability. Hertz defends the technology as a tool to improve fleet safety and vehicle inspection efficiency, noting that over 97% of vehicles scanned show no billable damage and customers can dispute charges through customer care. The committee's inquiry also considers the implications of Hertz's AI system on its contracts with the federal government.