Victory for rental car customers: Avis Budget Group forced to pay millions in settlement

A class-action lawsuit filed in 2011 against Avis Budget Group, the parent company of Avis and Budget rental car brands, has resulted in a $45 million settlement for customers who may have been overcharged, according to CNET on December 27, 2022.

The suit, known as Mendez v. Avis Budget Group, alleges that the company enrolled renters in an electronic toll payment plan without disclosing the fees in the rental contract and charged a “convenience fee.”

In a report by Top Class Action on September 13, 2022, they highlight that Avis Budget Group has denied any wrongdoing but has agreed to pay nearly $34 million to resolve allegations that it failed to purchase liability insurance for customers as promised in rental contracts. In 2020, the Justice Department reported that Avis paid $10.1 million to settle allegations of overcharging government agencies for rental vehicles.

US residents who rented an Avis or Budget vehicle between 2007 and 2015 and paid for e-Toll services are eligible for the settlement. The deadline to object to the settlement or opt out was December 20, 2022.

Based on the same report by CNET, class members may be eligible for partial reimbursement of e-Toll fees, with the average payout expected to be between $9.36 and $46.07. If the total of valid claims, attorneys’ fees, and administrative costs exceeds $45 million, individual payments will be reduced on a pro rata basis.

Claims can be submitted online or through a mail-in form and must be received by the end of February 2023. A final fairness hearing is scheduled for February 2023, and any settlement will be paid after that date, although the process may be delayed by appeals.