A Scary Rental Car 'Clerical Error' Can See You Arrested With Felony Charges

This is a nightmare scenario: You drive to the airport with your rental car, ready to return your vehicle. When you arrive, the clerks there call the police; officers arrive at the scene and accuse you of carjacking. You, of all people! You were just on vacation. You extended your car rental a few days, but you weren't stealing anything. The more your try to defend yourself, the less anyone listens to you. The police put you in handcuffs and cart you off to the precinct for processing. How is this possible? You didn't make even one of the 11 worst rental car mistakes to avoid, and you're certainly not some kind of hardened criminal.

As dystopian as this sounds, versions of this scenario have actually taken place. As detailed in a 2022 NPR report, Hertz Car Rental falsely accused 3,500 customers of stealing their cars, and for some, this resulted in felony charges and jail time. One extreme case involved an unnamed man from Mississippi, who had returned the car and paid in full yet was still incarcerated for six months. Many suspects were arrested at gunpoint, and their cases caused major disruptions in their personal and professional lives.

Why were innocent people accused of grand theft auto? A subsequent lawsuit cited a series of clerical errors: Hertz's computer system somehow indicated that a car was stolen. Some cars had been stolen — and later recovered — but the Hertz system never reflected their safe return to the fleet. These outdated reports were then tied to recent renters; many were arrested long after their rental agreements finished. The ordeal resulted in a $168 million lawsuit, a major blow to the company.

These clerical errors are exceedingly rare, but do happen, and not just with Hertz. In March 2025, two men from Washington, D.C. used the online rental app Turo to drive around Glendale, Arizona. The car they were renting had allegedly been stolen, and police officers approached them outside a restaurant with firearms drawn. Given such terrifying reports, renting a car may seem like playing roulette with your life and liberty.

In theory, the best option is to avoid renting a car altogether, and there are ways to determine whether to rent a car or drive your own for a road trip. Some destinations have robust mass transit and taxi networks, so you don't need to drive at all. But rental cars are generally affordable, convenient, and impeccably maintained, which is why the Hertz scandal seems so shocking. If you do rent a car, keep your rental agreement handy at all times, including both paper and digital versions, when possible. It's common to take photos of the car's exterior before you drive, to document any nicks or dings, and these images will help confirm your relationship with the vehicle.

If approached by police, stay calm, assert your rights, and offer to show your agreement. Further, if your rental car is actually stolen during your trip, make sure to notify the authorities and file a report, to prevent any future misunderstandings. Interestingly, travel expert Rick Steves has surprising advice for how to protect rental cars from theft while traveling.