Well, no matter what, YOU are liable for the car - you rented it and (in violation of the rental agreement) gave it to a third party , so , it's your baby. I feel sure if you pay for the car, the rental company will not file charges. As for the friend; first, settle with the company about the car - then go to your County or City D.A. and explain what happened, and what she has done since then - take any documentation and proofs with you. Try to file a stolen vehicle report (since it's going to be your car now) and let the cops take it from there. Document any threats made (record any telephone calls) and immediately give them to the cops to follow through on.