If You Rented a Car From Avis, You Could Be Owed Part of a $45 Million Settlement
Avis and Budget included hidden fees in customers' bills, according to a class action suit.
The Avis Budget Group is paying $45 million to settle claims about hidden fees.
If you've rented a car from Avis or Budget you may be eligible for part of a $45 million settlement the brands' parent company is paying to resolve claims that it hit customers with hidden fees.
A class-action suit filed in 2011 alleges the Avis Budget Group surreptitiously enrolled renters in an electronic toll payment plan administered by the Highway Toll Administration. Avis and the HTA reached an agreement with plaintiffs in June and eligible customers can now file a claim for compensation.
Avis Budget Group didn't respond to a request for comment, but in filings it denied any wrongdoing.
Below, find out who's eligible for payment, how to file a claim and how much money you could get.
For more class-action suits, see if you qualify for T-Mobile's $350 million data breach payout or Apple's $50 million Macbook settlement.
What's Avis accused of?
The suit, Mendez v. Avis Budget Group, was filed in November 2011 in New Jersey, where Avis Budget is headquartered.
Lead plaintiff Jose Mendez says he was automatically enrolled in Avis Budget's e-Toll program and charged a "convenience fee," even though there was no mention of it in his rental contract. Other class members claim they were also charged the toll fee, which reached $2.50 per day, Law360 reported, or up to $10 a week.
Last year, the Justice Department reported that Avis was paying $10.1 million to settle allegations that it overcharged government agencies, including the Department of Defense.
Who's eligible for money from the Avis hidden fee settlement?
US residents who rented an Avis or Budget vehicle between April 1, 2007, and Dec. 31, 2015, and paid Avis, Budget or the Highway Toll Administration for use of their e-Toll service are eligible for this class action settlement. (For car rentals in Florida, Texas, and Colorado, the valid period is March 2, 2009, to Dec. 31, 2015.)
No proof of purchase is required if you can be paid based on the claim processors' records of your car rental charges.
If you cannot, you will need to provide proof you rented an Avis or Budget car and were charged for eTolls.
Read more: What's a Class-Action Lawsuit?
How much money could I get?
Class members are eligible for partial reimbursement of e-Toll-related fees, based on how many transitions they were charged. For the first and second transactions, 80% will be reimbursed. For third through seventh transactions, 65% will be reimbursed.
The average payout is expected to be between $9.36 and $46.07, according to the settlement website.
Number of Rental Transactions | Average Settlement |
1 | $9.36 |
2 | $18.13 |
3 | $24.89 |
4 | $31.58 |
5 | $38.13 |
6 | $44.61 |
7 | $46.07 |
In the event that the valid claims, attorneys' fees and administrative costs exceed $45 million, individual payments will be reduced on a pro-rata basis.
How do I file a claim?
You can submit a claim on the settlement website or print out a form, complete it and mail it to:
Avis Budget Group E-Toll Settlement
c/o Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
If you received a letter or email with a Notice ID and Confirmation Code, you will be asked to provide them. If you didn't receive a notification, you'll be asked to provide contact information.
When is the deadline to file?
All claims must be submitted or postmarked by 11:59 p.m. PT on Feb. 28, 2023.
While the courts have given preliminary approval to the deal, a final fairness hearing will be held Feb. 23, 2023. Any compensation would be sent out after that, though the process may be delayed by appeals.