mgjackson69, on 2008-10-05 13:36:03, said:
1) Report your passport as stolen, not lost
2) Go to your embassy with that report and request a new passport. You can tell your story there if you like, but it is not the embassy's task to do anything about it.
Lessons learned
1) Carry a photocopy of your passport to use for this type of situation (rental, etc)..."Sorry, this is all that I have with me"
2) When renting a motor vehicle, always do a walkaround with an agent, noting any existing damage, scratches, etc.
I seriously doubt that she can have your passport "blocked" (or BLOCKED)
What he said.
Although to be pedantic. Is a passport not reported as lost
OR stolen, by that I mean there is not 1 form for lost and another for stolen. I have had to replace 2 passports and each time it was a case of having it in (Wherever), and upon arriving in Bangkok it was missing. I might have lost them and they might also have been stolen, I just don't know for sure.
I'd avoid telling the Embassy that it is with a rental guy as it may open a can of worms for you, just keep it simple. You also have to make a police report to get a new one, again keep it simple and either way the old passport is cancelled.
Are US passports fitted with a micro-chip? My British passport is which makes it pretty much worthless on the black market because it is just about impossible to tamper with. The bloke is probably giving you BS about selling it, or if he does try then he might get a surprise when he is offered 0 baht for it.
Oh, don't be a numpty again and learn from your lesson.