I had a similar experience with Avis in Germany.
Avis charged me 460 euros for a little tiny scratch in the left front bumper. Less than 1 centimeter. It could hardly been noticed.
The thing that made me upset is that the car came with three large scratches when I picked it up. As they probably charged the other customers for these scractches, why didn't they repair the car before renting it again? Are they charging the damage, but never repairing it, and keep renting the car damaged? Isn't it an easy way to make some money?