The Travel Troubleshooter

Why did Dollar charge me $1,858 for a car they didn’t have?

Dollar billed a couple $1,858 for a Jeep they had returned weeks earlier, then threatened repossession.

Why did Dollar charge me $1,858 for a car they didn’t have?

A few weeks after Dennis Drake returns his Dollar rental car in Albuquerque, the company bills him an extra $1,858. The car rental company claims he kept the vehicle. Can a paper trail fix this bill?

Question

My wife and I recently reserved a Jeep Compass from Dollar Car Rental to be picked up in Phoenix and returned to the Albuquerque airport. When we arrived in Phoenix, we verbally declined the extra insurance and roadside assistance because we already have coverage through our own insurance. 

The car had issues. We had to fill a tire with air daily and the “check oil” lights flashed a warning while we were driving. We returned the car a few hours later in Albuquerque. 

An employee checked the car with a laptop, we unloaded our bags, and we told him about the leaky tire and engine light. He took the keys and told us we were good to go. He didn’t give us a receipt. 

When we looked at our paperwork, we saw we’d been charged for the insurance we declined. We tried to fix it at the desk, but they told us to call customer service. We flew home to Texas that afternoon.

A few weeks later, we got a text saying the car was overdue. We called and explained we’d returned it. Then we got a letter threatening repossession. We called again and were told the matter was “under review.” Eventually, Dollar claimed we returned the car “in person” a few days after we returned home. 

Our credit card company eventually posted a charge of $3,656. We disputed it, and for a while, it seemed resolved. But now, Dollar has sent us a new invoice for $1,858. It won’t acknowledge our airline tickets or any proof that we were home in Texas. It feels like no human has ever looked at our evidence. Can you help us stop this bill? — Dennis Drake, Carrollton, Texas 

Answer

Dollar should have closed your contract the second you handed over those keys in Albuquerque. When a car rental company accepts a vehicle, its internal systems ought to reflect that return immediately. If a car needs maintenance—like yours did with that leaky tire—it’s the company’s job to track its movement to the repair shop without blaming the customer. 

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You made several errors that I’ll tell you how to correct. First, you should never drive a rental car with mechanical problems. Pull over and call the car rental company. If it’s a minor issue, they’ll ask you to drive to the nearest location. But if it’s serious, you might have to get the car towed. 

Also, you left the lot without a printed or emailed receipt. Always wait for that piece of paper or email confirmation. If the handheld scanner isn’t working, go to the counter for your paperwork. That receipt is your “get out of jail free” card.

You also were charged for insurance you didn’t want. That’s another car rental “gotcha”—and easily avoidable. Rental agents often bury those charges in the digital signature pad. In a follow-up email, you admitted that you signed the rental contract without reading it carefully, which is why your initial credit card dispute likely failed. 

But you also did a few things right. You did a great job keeping your paperwork once Dollar tried to charge you extra. You had your flight itineraries and Southwest Airlines documents proving you were in the air while Dollar claimed you were still joyriding in its Jeep. When a company ignores your logic, you can find executive contacts for Hertz (which owns Dollar) on my advocacy site, Elliott.org. A brief, polite email to one of them might have turned this around for you. 

I reached out to Hertz on your behalf.

“Our internal review found that the customer’s contract was not properly closed and processed when it was returned,” a Hertz spokeswoman told me. 

The vehicle went to a maintenance lot for service and sat there for several days. Because it didn’t have tracking technology enabled, the system assumed you still had it. 

Hertz has apologized and issued a full refund for the rental and the insurance you didn’t want. It also dropped the $1,858 “overdue” bill.  Next time, please don’t leave the lot until the computer says you’re home free—even if you have a plane to catch.

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Should rental companies be required to give a closing receipt at every car return?
Christopher Elliott
Christopher Elliott

Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. He's the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report, a news site for consumers, and Elliott Confidential, a critically acclaimed newsletter about customer service. If you have a consumer problem you can't solve, contact him directly through his advocacy website. You can also follow him on X, Facebook, and LinkedIn, or sign up for his daily newsletter.

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