Sometimes, companies do listen to their customers. Case-in-point: Hertz.
For the better part of the last week, I’ve been corresponding with the car rental company about its poorly-disclosed and questionable refueling policy. Several readers have noticed that they were being billed for gas even when they returned the rental with a full tank.
Seems Hertz had a policy of charging a refueling fee for rentals that put less than 50 miles on the car. And making matters worse, it was less than open about the rule. Reader Bart Moore confronted a Hertz manager after being charged several times without any warning.
I was floored when the manager confirmed my suspicion! He explained that for rentals for less than 50 miles they always charge; it’s automatic, and is a policy.
I said, “Isn’t Hertz worried about a class action lawsuit”? And the manager replied, “I wish someone would — we hate this policy.”
I contacted Hertz on Moore’s behalf. In the meantime, my colleague Erik Torkells over at Budget Travel noticed the mysterious surcharge, too.
The Hertz rep said that if you drive fewer than 100 miles during your rental — as we did, remarkably — the computer automatically charges you for gas (“and if I don’t catch it and you don’t catch it, you get charged for it,” he said).
This morning, Hertz apparently has reversed itself. It is now charging market prices for gas — an announcement made earlier this morning in the U.K. and that a Hertz insider says will be made shortly in the U.S.
The new policy, which goes into effect July 1 at most Hertz locations in North America, means that both the fuel and service charge and the fuel purchase option will “reflect new, lower pricing bases upon the average price per gallon as set by the Oil Price Information Service in the geographical area where the car is rented,” according to the announcement, which a company insider was kind enough to send me.
For customers who don’t refill the fuel tank before returning the rental vehicle and elect the option of then having Hertz refuel the vehicle – will be based upon local market fuel prices, plus a one-time Refueling Fee of $6.99. The fuel purchase option – for customers who elect the option to purchase a tank of gas at the outset of the rental – will reflect local market fuel prices minus a small discount of approximately 15 cents per gallon.
Not bad, Hertz.
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Is this true? Maybe I’ve gotten extremely cynical (can you blame me, American Airlines?), but this seems like a very reasonable, customer friendly move. And so I’m wondering what I’m missing. A new $50 charge to use the steering wheel? A $120 charge for future replacement of wheels?
If they just knocked down the ridiculous fuel charges (that were probably illegal anyways), then I applaud the long over due move. Heck, I’d let them refuel it for an extra $0.15/ gallon. It beats getting myself lost looking for a gas station in the ghetto. (LONG story) However, if they raise other fees or prices…. well, then they would just be like the airlines, I guess.
Good work, Chris.
Avis is charging around $11 for 75 miles and under. I happened to hit exactly on 75 miles – and found that their computer charges at 75 and up. Arguing the wording on their flyer did nothing for me – “75 and under” and “75 and up” did nothing for the clerk to help me avoid the extraneous fee.
If I had driven 74 miles, it would be $11, instead at 75 miles it was $20.
If you bring the vehicle back full, just tell them to remove the charge. The justification for the charge is to put gas in the car. If they do not have to put gas in it – then they are not entitled to the fee. I’ve pointed it out and they have removed it with no hassle – just have the receipt in your hand when you do ask.
had the same problem with Avis. Just had arental for 6 hours and 20 miles. They wanted to see a gas station recipe. I told them that I don’t have it … They wanted o add 10 $ to the bill…. So i told them wasn’t disclosed and if they do so the hole charge goes back from my AMEX … so after 5 min discussion they left it off (Chicago ORD Avis….)
JR
Avis tried to whack me with this charge because I was under 74 miles and returned the car with a full tank. Fortunately for me, when I rented, the agent never pointed this out to me, nor did I initial the clause on the contract. Avis took it off, but I was a bit irritated – the crap that the travel industry does.
Hertz #1 Gold member – never had a problem with them, and this move (as a first-adopter, not even a follower) will make me an even more loyal customer going forward – WAY TO GO HERTZ!
Amazing! Now if only Hertz would buy American Airlines…
AA has negative shareholder value – anyone with a $1.85 in their pocket can buy AA.
Well, let’s see… I get paid this week. Reckon I could buy AA? Oh, the changes I would make. LOL.
It’s good to hear about the gas prices, probably because they are already obscene without adding extra percentage cut on top.
Not completely related, but I just learned this the hard way last week, might be helpful to others. Hertz’ definition of spouse does not extend to domestic partners, you must be married to be automatically covered by their insurance. Surprising to me because I live in California where spouse and dp are treated the same.
I live in Toronto and have rented from AVIS for 14+ years. Their system automatically tacks on the fuel charge if the car has been driven 125 km or less. However, the charge is manually removed when I show them the receipt for filling the tank.
Many times when someone rents a car only for a day, they don’t end up driving the car enough for the gas needle to move below the “Full” mark, so they don’t put any fuel in the tank. If Hertz actually attempted to put gas in every car that’s returned with the needle on F, I wouldn’t have a problem with this fee. Having to show a receipt would prove that you actually did add a couple of gallons before returning. However, when the needle is on F, I doubt that Hertz tries to add any more gas to the car, and it’s quickly cleaned and returned to the rental line. Then the next customer rents the car with 2 gallons less than full, and pays for those 2 gallons when they refill the car at the end of the rental. Maybe the Hertz policy isn’t fair, but is it fair to the second person who rents the car? The car appears to be full, but isn’t, and they end up paying for the fuel useage of the previous customer.
Thanks Chris for actually getting something done about my complaint. I’lve been trying to figure out how to file a complaint with the FTC or another appropriate agency but now you’ve done it for all of us.
As you recall, I had another Hertz rental and put 135 miles on it. I returned it full (not just the needle showing Full, but actually had filled the tank) and was charged about $70. So will Hertz’s new policy be to no longer charge for fuel regardless of the miles driven, as long as cars are returned Full, or only if you show a receipt or happen to notice THEIR fraudulent charge (uh, I mean mistake).
Good job! I might just continue my Hertz #1 Gold membership.
Bart
Our law firm is investigating this issue on behalf of an existing client and we are gathering factual information related to Hertz’s refueling policy. If this has happened to you and you have documentary proof, please contact me at dgresham@fineberglaw.com or (214) 219-8828. We are trying to ascertain the nature, extent, and scope of this problem.
Thank you,
Dean Gresham
So my boyfriend and I are getting ready for an out of town wedding where we need to rent from Hertz. We don’t expect to have time to refuel before returning the car – but we will probably be driving less than 40 miles. So am I right to assume that we will be charged some amount of cents per mile we drive – in order to calculate the refueling charge? What if we drive one of their green cars – is the amt different from one of their sportier cars and if so does ANYBODY know how such a calculation is made? I mean aside from lowering their prices, has Hertz changed anything about the way they bizarrely calculate their refueling costs? PLEASE CLUE ME IN!
We are a law firm and want to talk to persons who were charged refueling fees by rental car companies. We are especially (but not exclusively) interested in people in the state of Ohio. It doesn’t matter which rental company charged the fee – Hertz, Avis or Budget – we want to talk to you. Please contact Andrew Samtoy at Dworken and Bernstein, L.P.A., at (866) 964-1806.