New Hertz CEO Stephen Scherr has publicly admitted for the first time that some customers have been arrested for driving cars they rented. "It's not acceptable to Hertz to have any customer, a single customer, sort of, caught up in some of what's happened," Scherr told CNBC on Monday, about a month after starting his new job.

The admission is a huge change for Hertz, to say the least. For more than a decade, the company has fought these claims in various courts, arguing that any customer arrests are the customers' own fault. "The vast majority of these cases involve renters who were many weeks or even months overdue returning vehicles and who stopped communicating with us well beyond the scheduled due date," a Hertz representative told late last year. "Situations where vehicles are reported to the authorities are very rare and happen only after exhaustive attempts to reach the customer." The representative went on to disparage the reputation of the attorneys representing false-arrest plaintiffs in a lawsuit against Hertz.

Scherr's statements were welcome news to the hundreds of customers currently suing the rental car company in bankruptcy court over false arrests. And they should be good news to anyone planning to rent a car from Hertz. But they also leave a lot of questions unanswered. Here are a few of them.

How well does Scherr know the facts of the case?

Before coming to Hertz, he was CFO at Goldman Sachs. He told CNBC and others that the false arrests were among his top priorities for his first 30 days as CEO. But in a TV interview, he explained the false arrests this way: "We had cars that were stolen or allegedly stolen. We put a police report in. When our car was found, the report was rescinded. And unfortunately, in certain circumstances, when that car went out again, it wasn't, in fact, rescinded. And so the customer was accused."

What Scherr described does seem to have happened at least once. But most of the 230 customers who are suing Hertz over false arrests describe a completely different scenario. They say they were arrested after they extended a rental and the temporary hold the company put on their credit or debit card failed to go through.

To anyone who's been following this story, Scherr seems like he's either being untruthful or is very uninformed. Neither is a good look for a leader.

What about customers who are still being prosecuted today?

Scherr's statement that the company withdraws stolen car reports once the cars are found is "demonstrably false," according to Franics Alexander Malofiy, an attorney representing the customers. "Hertz has always said that it is not empowered to withdraw police reports," he told "We have their letters saying this to our clients in December 2021. Scherr's statement "completely glosses over the severity and the harm visited upon so many people, and people still stuck in the system," he adds. So far, Hertz doesn't seem to have withdrawn its stolen car reports on around 40 customers who are currently facing prosecution, in some cases for years, Malofiy notes.

How will this affect a potential investigation by Congress? 

Democratic senators Elizabeth Warren and Richard Blumenthal have both called for a governmental investigation into the false arrests and Hertz's business practices. Malofiy suspects this is why Scherr is treating the matter as urgent. "We will do right where our customers have been negatively affected and I'm looking to resolve that very, very quickly," Scherr told CNBC. 

Will customers keep getting arrested?

This is the most important question for anyone thinking about renting from Hertz. "We have changed our policies to avoid the possibility of this happening," Scherr told CNBC. That sounds like a positive step. But he didn't specify what changes the company had made--or what policies led to the arrests in the first place.

Since Hertz is in the middle of a highly public legal battle stemming from the arrests, it's easy to see why Scherr might not be able to divulge details of the company's policies, or how they may have changed under his leadership. But without those specifics, it's tough to predict whether the false arrests really have ended for good. Like the dozens of customers still facing possible jail time, we might just have to wait and see.