Dozens of customers allege Hertz had them falsely arrested over rental cars reported stolen: "It was just terrifying"

A bankruptcy court judge was set to hear arguments Thursday regarding claims filed by dozens of Hertz customers who say they were falsely arrested — and in some cases jailed — because the company reported the cars they had rented as stolen. 

The car rental giant, which recently emerged from bankruptcy, insists virtually all of the claims are "meritless" and says they should not be allowed to proceed for various technical reasons.

One of the claimants, James Tolen, said a surprise traffic stop in Houston late last year turned into a frightening police encounter that made him fear for his life. After completing a project for one of the customers at his renovation company, Tolen was heading home Dec. 23 in a pickup truck rented from Hertz.