Nicole Paixao (pronounced PACKS-E-O) told The Post that she and her wife were concluding a Fourth of July vacation when they returned their rented Nissan Altima to the Dollar-Hertz terminal at Atlanta’s Hartsfield-Jackson International Airport, which installed a new AI-powered inspection system.

“Before we even reached our gate, I received a text and email stating that they had found damage on the vehicle,” the Binghamton area resident told The Post.

Nicole Paixao (pronounced PACKS-E-O) is refusing to pay a $440 fine imposed by Hertz. Paixao is seen left with her wife. Nicole Paixao

“My wife and I travel a great deal and I will never use their car company again,” she said.

“I do not believe at any point that I damaged their vehicle or did anything wrong. I will not succumb to $440 for a scratch, which, even if it exists, is not a feasible price.”

“It appears to be a small scuff on the wheel that allegedly was not there prior to rental.”

When reached by The Post, Hertz provided close-up before-and-after photos of the front passenger-side tire that sustained the scuff.

Paixao, a resident of Vestal, NY, near Binghamton, took a trip to Georgia with her wife over the Fourth of July holiday and rented a car from Hertz subsidiary Dollar. Nicole Paixao

When Paixao and her wife picked up the Nissan Altima on June 28, the tire in question showed no visible signs of damage or scratches. After the couple returned the rental car on July 5, the rim of the tire appeared to sustain marks that measure a few inches in diameter, according to the provided photo.

The rental car giant defended the computerized inspections, saying that they provide “precision, objectivity, and transparency” to what was previously a subjective process.

The AI system is designed to ensure customers “won’t be charged for damage that didn’t occur during their rental” and that 97% of the nearly one million rentals scanned by the apparatus showed no billable damage.

Hertz told The Post that its terms of service, which are standard fare industrywide, stipulate that customers are financially responsible for any damage during the rental period — regardless of how it occurred.

Paixao told The Post she was shocked to learn she was hit with a $440 fine for a “minor scuff” on one of the car’s tires. Nicole Paixao

The company said that its scanners have been programmed to only detect damage that “exceeds our billable threshold.”

“We don’t charge for ordinary wear and we also won’t charge for damage until it exceeds certain thresholds, for example a dent that exceeds 1 inch,” Hertz told The Post.

Hertz said that Paixao could have purchased the company’s in-house insurance policy prior to rental, which likely would have covered the damage. But Paixao told The Post that she could have had her own insurance cover it — but refused to submit the claim out of principle.

Paixao told The Post she declined Hertz’s optional insurance coverage at the time of rental.

Hertz has deployed AI-powered scanners at several airports nationwide. The scanners have flagged seemingly minor damage, charging customers hundreds of dollars and sparking an outcry. UVEYE

“I believe I opted out of the additional insurance,” she said, adding that her coverage is through her employer. “Although it probably would have been covered, I did not want to submit it as I still believe their price gouging is ridiculous.”

She said Hertz “failed to provide me with the video of the damage” despite her repeated requests.

Paixao, who said she does not own a personal vehicle, believes the bigger issue is how Hertz arrived at the $440 figure. “I think the focus here is how they came about a number like that and how there are articles, such as the one that you wrote, where people are consistently being charged $440 for a scratch,” she said.

The photo provided by Hertz shows the extent of the damage to the rim of the front passenger-side tire after Paixao returned the vehicle on July 5. Handout

She added that if any damage did occur, it might have been caused by the spikes drivers are forced to cross on their way to the automated inspection area. “Something they could merely buff out but instead opt to charge $440 a day several times a day,” she said.

“As is standard across the industry and explained in our rental agreements, damage that occurs to the car when it is on rent is the responsibility of the renter,” a Hertz spokesperson told The Post.

“Car rental companies, personal auto insurance policies and some credit cards offer coverage and protection options that can alleviate or limit the renter’s financial responsibility.”

The company said that “we aim to handle every case fairly and objectively and, in this instance, our team reviewed the case and confirmed there was new, billable damage.”

This is what the tire looked like on June 28, when Paixao and her wife rented the Nissan Altima from Dollar. Handout

Paixao suspects the alleged mark was either a misreading by the AI scanner or was caused by the metal spikes and speed bumps vehicles must cross before reaching the scanner.

“I personally don’t think any damage was done to the vehicle, but if it was, I think it is a scam designed to scratch the tire and fabricate this whole charge,” she said.

Paixao provided screenshots of emails, receipts and correspondence with Dollar and Hertz that show the charge broken down as $250 for rim repair and a $190 “processing fee.”

Paixao stated she immediately responded, asserting that she and her wife did not damage the vehicle and refusing to pay any of the fees.

According to her, the company persistently sent texts and emails multiple times a week demanding payment, which she described as “harassing.”

She wrote that the company sent messages “not only to my phone, but also to my wife’s phone, which was listed as a backup contact on the account.”

Paixao shared screenshots of her emails to Hertz in which she stated she would not be paying the fine. Handout

Paixao told Hertz she was refusing to pay for what she called a “small scuff” on the tire. Handout

Paixao said Hertz was “harassing” her by texting her reminders to pay the fine. Handout

Paixao said her replies went unanswered.

“I continued to respond to emails and never once did I receive an email back,” she wrote.

She said that when she called Hertz, she was transferred multiple times before “a woman named Kimberly Parnell reached out, claiming to be the deciding factor and dismissing all of my prior emails and phone calls.”

Paixao said she asked Parnell “for a video of the vehicle to show me the scratch versus a picture and she declined.”

She also reached out to Capital One, the card she used for the reservation, and “made them aware that if this charge came across, it would be fraudulent.”

Paixao said she even offered Hertz the contact information for her personal attorney in case the company wanted to discuss the matter directly.

Paixao pleaded with the car rental company to “stop harassing me.” Handout

However, she wrote, “they insisted my attorney provide a letter of representation, which would incur billable hours that I was unwilling to pay for.”

Paixao also contacted Orbitz, where she made the reservation, and submitted receipts and correspondence.

“I provided the receipts they requested, but a few days later, a different representative from Orbitz emailed me, asking for the same information again,” she wrote.

“Again, I promptly provided it.”

This incident reflects increasing complaints regarding Hertz’s deployment of AI-driven vehicle scanners.

The machines, which are provided by Israeli tech firm UVeye, automatically photograph and flag potential damage upon vehicle returns.

“My wife and I travel a great deal and I will never use their car company again,” Paixao told The Post. Nicole Paixao

Recently, renters across the country have criticized the system for misidentifying water reflections, shadows or existing imperfections as new damage, leading to charges of hundreds of dollars.

The company has rolled out the scanners at several major airports, including Atlanta, Newark, Houston, Charlotte, Phoenix and Tampa. Hertz said it plans to expand to more locations by the end of 2025.

Critics argue that these AI assessments leave renters with virtually no way to dispute an automatically generated claim.

“I’m also extremely curious how they arrive at such a gashing number of $440 for an alleged $190 processing fee,” Paixao told The Post.

The rental car giant defended the computerized inspections, saying that they provide “precision, objectivity, and transparency” to what was previously a subjective process. Christopher Sadowski

“What are they processing?”

Paixao said she also researched the value price of an Altima rim. She said she was able to spot new Altims rims on the internet for less than $280.

Paixao mentioned a past incident with Hertz at Phoenix Sky Harbor Airport, where she was charged “approximately $70 for not returning the vehicle with a full tank of gas.”

She said she proved she refueled before drop-off and that Hertz “dismissed the case.”

The Post has reached out to Capital One and Orbitz for comment.

The post NY woman refuses to pay $440 to Hertz after AI scanner flags ‘scuff’ on tire appeared first on Our Story Insight.

Sixt, the Germany-based rival which operates more than 100 branches in 25 US states, has reportedly been sticking car renters with bogus repair bills for pre-existing damage.

The company uses what it calls a “Car Gate” system that photographs vehicles when customers pick them up and again when they return them.

Sixt customers say they were charged for damage based on wheel photos taken at vehicle pickup rather than return, triggering complaints about AI scanning errors. REUTERS

Staff members review all computer-flagged damage before issuing charges to customers. But two separate incidents, first reported by The Drive, revealed serious flaws with the system.

One customer, identified as Badi, rented a Mazda CX-50 from Sixt at Atlanta’s Hartsfield Airport and received a bill for $605.82 three weeks later for alleged wheel damage, according to The Drive.

When Badi requested evidence, Sixt provided a photograph that initially appeared to show an undamaged wheel. Only after an employee zoomed in could the supposed scuff marks be identified.

The critical error became apparent when Badi examined the photo’s timestamp, according to the report.

The image was dated from when the vehicle was first picked up, not when it was returned — meaning Sixt was attempting to charge for damage that existed before the rental period began, The Drive reported.

“I immediately contacted Sixt, explaining they were using the wrong photo,” Badi told The Drive.

Hertz has begun installing AI-powered scanners like these at major U.S. airports to speed up and automate rental car inspections. UVEYE

“After escalating to management, they dropped the claim entirely. Had they not accidentally shared the exit photo, they likely would have proceeded with collections.”

Before acknowledging the mistake, a Sixt employee reportedly threatened to send the matter to collections if payment wasn’t received within a specified timeframe.

A nearly identical situation occurred with Ray, another Sixt customer, who rented a vehicle at Ronald Reagan National Airport in Washington, DC.

Car rental customers have been complaining after getting hit with charges over seemingly minor scuffs detected by AI scanners. @professor_pimpcain/Reddit

After returning the rental during a storm, Ray received an email showing two small scratches on a wheel and fender — with a payment demand for $650 in repairs or insurance information, according to The Drive.

Ray noticed the vehicle appeared completely dry in the photographs, despite being returned on a rainy day. Upon closer inspection, the images were stamped with the date of the initial pickup scan, not the return inspection.

The photos even contained the word “exit,” indicating they were taken during vehicle departure rather than return.

When Ray challenged the charges, pointing out the timestamp error, Sixt closed the case within a week.

Both Sixt cases involved relatively minor cosmetic damage that would typically be considered normal wear and tear.

The customers were only able to dodge being ripped off because they carefully examined the photographic evidence and discovered the timestamp errors, according to The Drive.

When asked about the Sixt incidents, the company apologized but provided no explanation for how the errors occurred.

“We sincerely apologize for any inconvenience to the customer. This experience does not reflect our high service standards,” Sixt told The Drive.

“In the rare event a discrepancy occurs, our team is committed to reviewing it thoroughly and resolving it promptly — as was done here in response to the customer’s feedback.”

The incidents come as Hertz customers complained that they were charged hundreds of dollars for minor scrapes and dents that were detected by the rental car giant’s new AI-powered scanner — with little recourse to dispute the charges.

Meanwhile, the rental car industry appears to be expanding its use of digital scanning technology beyond Hertz and Sixt.

Customers have reported scanners at Avis locations at Los Angeles International Airport and at Enterprise facilities at Houston’s George Bush Intercontinental Airport, though those individuals didn’t experience billing disputes, according to The Drive.

Hertz is leading the rollout, aiming to equip over 100 airport sites with UVeye technology by the end of 2025.

Avis Budget Group is experimenting with AI at select facilities like LAX but maintains that inspections remain human-led. Enterprise says it does not use the technology at all.

When contacted about their scanning practices, Avis Budget Group told The Drive that “the damage assessment process at Avis remains human-led” while acknowledging that artificial intelligence “may be used to support internal efficiencies.”

Sixt, the Germany-based company, operates more than 100 branches in 25 US states. REUTERS

The company emphasized that technology doesn’t replace employee judgment and that fair, transparent customer experiences remain their priority. Avis previously tested an AI-based inspection system at London’s Heathrow Airport in 2019.

Enterprise Mobility, which operates Enterprise Rent-A-Car, National Car Rental and Alamo, explicitly denied using digital damage scanners.

“Enterprise Mobility is not using digital damage scanners at check-in, check-out, or in our damage review process for any of our car rental brands,” a company representative told The Drive.

The Post has sought comment from Sixt, Avis Budget Group and Enterprise.

The post Hertz rival also uses AI scanners to charge for bogus claims: report appeared first on Our Story Insight.