Yes, Hertz will deduct from your credit card. This happened to me in Montreal. The difference was that I didn't even know it was happening. I was cited for turning left at a set of traffic lights when I shouldn't have done. (I saw no signs, and don't even know which set of lights, but no matter - I've discovered the hard way that one-way systems in Montreal were devised by someone from the planet Zog.) Hertz paid the fine, and finally let me know about it several months later - i.e. no chance to contest the citation.

No effect on my CA driver license, however.