Extra fees and charges are almost expected when it comes to the expenses related to traveling. An extra checked bag here, an overweight bag there, cleaning fees — and don't get me started on the price of water bottles at train stations and airports.
However, none of those expenses compares to the trials and tribulations of one frequent traveler and loyal Hertz (HTZ) customer by the name of Joshua Lee, who was slapped with an exorbitant and very unusual fee after renting a Tesla (TSLA) for a weekend in Los Angeles.
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As per a report by The Drive, Lee rented out a Tesla Model 3 for a weekend getaway in Los Angeles. When he looked at his receipt for the rental after returning the car he noticed that he was charged an additional $277.39, on top of the rental reservation price — a fee that Hertz says is the cost of refueling the compact electric car he rented.
Though this may seem like a mistake that could have been dealt with over the phone, or a series of emails, Hertz initially stood firm on the charges.
According to receipts seen and confirmed by The Drive, when Lee made the reservation, he tacked on Hertz's "Skip the Pump and Save Time" option, which allows Hertz customers to bring back their rentals without refueling the gas tank. However, even with this clause that leaves customers renting gas cars off the hook, Lee was being taken for a ride.
Lee's receipt showed that he returned the Tesla Model 3 to Hertz at 96% charge — the same level of charge he received the car when he picked it up. According to Hertz's similarly named "Skip the Recharge" EV recharging policy, if a customer were to return the car with a flat battery; the most they would be charged is $35.
"You can return your EV at any charge level and we’ll recharge it for $35—or just $25 for Gold Plus Rewards Members," it says on its website. "Or, return it at the same level as pick-up and pay $0."
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All things accounted for, the maximum that Hertz should have been charged Lee (even though he returned the car at the same exact charge level) was $35. However, when Lee first went to dispute the charge with Hertz's customer service via email, there was nothing that they could do, because, according to Hertz, "the service was provided and contract is closed."
"I am unable to provide an adjustment or refund since the service was provided and contract is closed," a Hertz customer service administrator told Lee via email. "Your signed rental agreement will also be our basis that you are fully aware of the fuel option that was added on the contract. I hope I was able to clarify this with you. Thank you for allowing me to review and assist you with your concern."
Prior to this ordeal, Lee has been a longtime Hertz customer, so much so that he carries its high-level President's Circle status; which is achieved by renting 20 or more cars annually or by spending $4,000 per year with the rental agency. However, this would be Lee's last Hertz rental, as he continues to dispute the charge with his credit card company.
As of May 9, Hertz has informed The Drive that its customer care team will reach out to Lee "to apologize and refund this erroneous charge."
Related: Key analyst calls rental car giant's Tesla dump a miscalculation
Hertz has had a complicated relationship with EVs. Earlier this year, the rental company reduced its electric vehicle fleet by about a third, selling off more than 20,000 EVs including Teslas due to unpredictable resale values caused by sudden price cuts initiated by Tesla. The move is a sudden reversal of its original plans, which called for EVs to account for 25% of its total fleet by 2024.
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