Avis Budget agreed to a reported $19 million settlement resolving a class action over Payless Car Rental charges for gas service and roadside protection from Jan. 1, 2016, to Nov. 25, 2023. Plaintiffs alleged fees were added despite refusals or without clear disclosure; the settlement requires affirmative consent for add-ons and does not require an admission of wrongdoing.
Now one of the biggest players in the space, Avis Budget Group Inc., will have to pay $19 million to resolve a class-action lawsuit alleging its subsidiary Payless Car Rental Inc. improperly charged renters for certain ancillary services, namely the Gas Service Option (GSO) and Roadside Protection (RSP), from Jan. 1, 2016, to Nov. 25, 2023, as reported by Claim Depot.
Levi & Korsinsky announced on February 24, 2026, that it had opened an investigation into potential federal securities-law violations by Avis Budget Group. The press release alleged that an EV-fleet write-down affected collateral for $965 million in securities and was not referenced in a January 5 filing; these are allegations, not a finding of wrongdoing.
The Q4 2025 loss was driven in significant part by a material write-down of the company's electric vehicle fleet. The EV-fleet impairment directly reduced the value of vehicles pledged as collateral for $965 million in asset-backed securities issued by the company's Interpace Funding LLC subsidiary on December 30, 2025. In a January 5, 2026, 8-K filing describing the notes as "secured ... by certain vehicles in our domestic fleet and other related assets," the filing did not reference the EV-fleet write-down recorded in the same reporting period.
On June 10, 2021, the U.S. Attorney’s Office said Avis Budget Group would pay $10.1 million to resolve allegations that it charged the government unallowable rental add-ons and late fees from 2014 through 2019, some already included in the government rate. The settlement resolved allegations only; there was no determination of liability.
Avis Budget made false claims in connection with obtaining payments under an agreement with the United States managed by the Department of Defense Travel Management Office. From Jan. 1, 2014, through Dec. 31, 2019, Avis Budget submitted false claims and received payment from the United States for unallowable supplemental charges to car rentals, including collision damage waiver/loss damage waiver insurance; supplemental liability coverage/additional liability insurance; personal accident insurance; personal effects coverage/personal effects protection; and late turn-in fees. In addition to being unallowable, some of the fees Avis Budget charged were already included in the government rental rate.
In a complaint reported December 3, 2010, Dollar Rent-A-Car franchisee James Cassan and his companies alleged Avis Budget’s proposed acquisition of Dollar Thrifty would reduce competition, threaten their businesses and raise rental and used-car prices. They sought to block the merger or require divestiture; these were plaintiffs’ claims, not established findings.
SEATTLE (CN) – Avis Budget Group’s acquisition of Dollar Thrifty Automotive Group “would create the largest airport car rental firm in the United States, with 41 percent of the airport car rental market” and “substantially reduce competition by combining the Avis, Budget, Dollar, and Thrifty brands under single ownership,” Dollar Rent-A-Car franchisees claim in a federal antitrust complaint. Plaintiff James Cassan runs a Dollar Rent-a-Car outlet in Seattle, with an outlet at the airport, and leases a fleet of rental cars to the Dollar outlet at the airport in Portland, Ore. Suing for his three corporations and himself, Cassan says the merger could put him out of business. “The car rental industry in the United States is marked by an increasing rate of market concentration in the past fifteen years,” the complaint states. “The significant increase in market concentration that will result from the proposed acquisition is likely to substantially lessen competition, in violation of Section 7 of the Clayton Act by increasing the ability and likelihood that the three remaining market participants will expressly or tacitly coordinate reductions in supply and increases in price, resulting in injury to consumers such as plaintiffs. “As franchisees of Dollar/Thrifty doing business as Dollar Rent-A-Car in Seattle-Tacoma and Portland, plaintiffs are further threatened with damage in the form of lost revenues, lost profits, decreases in the values of their businesses as going concerns, and the forced closure of their businesses resulting from exclusionary conduct including, but not limited to, predatory bidding, predatory pricing, diverted rental reservations, increased fees, business harassment and the pretextual elimination of plaintiffs as franchisees.” Airport car rentals bring in 80 percent of U.S. car-rental revenue, according to the complaint, and four firms control 98 percent of the airport care rental market. Avis/Budget controls 29% and Dollar/Thrifty 12%. Enterprise Holdings (National, Alamo and Enterprise brands) is the biggest, with 31%, and Hertz has 26%. The merger of Avis/Budget and Dollar/Thrifty would create a new leader for the industry, and reduce the number of competitors to three. Cassan adds that the supply of rental cars, known as “program cars,” would be jeopardized by the merger because Avis/Budget and Dollar/Thrifty are major suppliers. “The high level of market concentration created by the proposed merger will facilitate and is likely to lead to collusion among sellers in the used program car market, resulting in lower supply and higher prices. Moreover, there is a strong likelihood that, post-merger, the Avis/Budget-Dollar/Thrifty combination will merge their fleets, significantly reduce the number of vehicles in their fleets and reduce the number of program cars purchased – or reduce the number of program cars expected to be purchased by Avis/Budget and Dollar/Thrifty – resulting in fewer used program cars available for sale and higher prices for used program cars. As consumers of used program cars, plaintiffs will suffer injury in the form of higher prices and fewer consumer options,” the complaint states. Cassan says that Avis/Budget and Dollar/Thrifty agreed to the merger but Avis/Budget would not make a formal offer so the parties would not be “subject to substantial disclosure obligations.” He wants the merger restrained, and the defendants ordered to hold their assets separately pending final disposition, or an order of divestiture to reduce the anticompetitive effects of the merger. He is represented by John Houlihan Jr. of Seattle and Joseph Alioto of San Francisco.
Avis Budget Group hired former JetBlue lobbyist Josh Dover in May 2023, and he registered to lobby for the company effective in July. Avis joined a business coalition seeking permanent 100% immediate expensing of capital expenditures. The company also lobbied on tax issues and electric-vehicle infrastructure, spending $270,000 in the first half of 2023.
AVIS LOBBIES UP FOR EXPENSING PUSH: The Avis Budget Group has added its first in-house lobbyist as the rental car industry joins a push from the rest of the business community to prevent the prized full expensing provision from Republicans’ 2017 tax overhaul from winding down over the next few years.
A class-action settlement concerns an Avis security incident from Aug. 3–6, 2024, involving customers’ personal and payment information. Avis denied wrongdoing. Eligible U.S. customers could claim reimbursement of proven out-of-pocket losses up to $5,000, or seek a pro rata cash payment; USA TODAY reported the claim deadline was June 21, 2026.
Avis experienced a security incident in August 2024 involving customer names, driver's license information, credit card numbers and expiration dates, birthdates, and phone numbers, according to the settlement website for the class action lawsuit. Avis has denied any wrongdoing in the breach, but is paying affected customers up to $5,000 for out-of-pocket expenses.
On Aug. 15, 2023, New York Attorney General Letitia James announced Avis Budget would pay $275,000 in penalties after an investigation found 74 Avis and Budget locations denied rentals or refused accommodations to customers without credit cards. The agreement also requires policy and training updates and compliance reports; the company’s admission or denial was not stated.
NEW YORK – New York Attorney General Letitia James today secured $275,000 from the car rental company Avis Budget Group Inc. (Avis Budget) for illegally denying car rentals to consumers who did not provide a credit card. New York state law prohibits rental vehicle companies from denying services to customers who do not have a credit card. An investigation by the Office of the Attorney General (OAG) found that 74 Avis Car Rental and Budget Rent a Car locations across New York informed customers that a credit card was required to rent a vehicle. As a result of today’s agreement, Avis Budget must pay the state $275,000 in penalties and update their policies and employee training.
Avis Budget Group announced on Feb. 23, 2018, that Avis and Budget would end discounts of up to 25% for NRA members. Spokesperson Alice Pereira said the discounts would stop effective March 26. The announcement ended the companies’ member-benefit relationship with the NRA; the report did not give a reason from the company.
“Effective March 26, our brands will no longer provide the NRA member discount,” Alice Pereira, a spokesperson for Avis Budget, told ThinkProgress.
OpenSecrets reports that seven of Avis Budget Group’s eight lobbyists in 2024 had previously held government jobs, compared with all 12 listed for 2023. It also lists $790,000 in lobbying for 2024 and $670,000 for 2023. These figures and lobbyist counts are attributed to OpenSecrets.
FEC data for Avis Budget Group, Inc. PAC (C00335026) lists $18,500 in contributions to other committees during the reporting period January 1, 2025–October 14, 2026. OpenSecrets reports the contributions split as 35.14% to Democrats and 45.95% to Republicans; the supplied evidence does not account for the remaining share.
35.14% to Democrats, 45.95% to Republicans</td> <td>$18,500</td> </tr> <tr> <td>Contributions to this PAC from individual donors of $200 or more (list donors)</td> <td>$0</td> </tr> </tbody> </table>
On August 30, 2023, New York’s Appellate Division reinstated Stacia Domingo’s hostile-work-environment and aiding-and-abetting claims against Avis Budget entities. It left dismissal of her retaliation and interference claims in place, finding prior federal-court determinations dispositive of those claims, but not the two reinstated claims.
In or about September 2018, the plaintiff commenced an action in the United States District Court for the Eastern District of New York (hereinafter the District Court) against her former employers, Avis Budget Group, Inc., Avis Budget Car Rental, LLC, and AB Car Rental Service, Inc. (hereinafter collectively the Avis defendants), and individual employees of the Avis defendants. In that action, the plaintiff alleged, inter alia, employment discrimination and hostile work environment based on gender and retaliation under Title VII of the Civil Rights Act of 1964 (42 USC, ch 21, § 2000e et seq. [hereinafter Title VII]), the New York State Human Rights Law (Executive Law § 296 [hereinafter NYSHRL]), and the New York City Human Rights Law (Administrative Code of City of [*2]NY § 8-107 [hereinafter NYCHRL]). The defendants moved for summary judgment dismissing the complaint. The District Court granted the defendants' motion, dismissed the federal and state claims, and declined to exercise supplemental jurisdiction over the local claims.
OpenSecrets lists Avis Budget Group’s direct federal lobbying spending at $570,000 for 2025, with no subsidiary spending. Seven lobbyists were named, all with prior federal government employment according to OpenSecrets; one was in-house and six worked through outside firms.
The supplied Human Rights Campaign entry for Avis Budget Group, Inc. displays a score of 5/5. The evidence gives no additional criteria, date, or explanation for the rating.
In a lawsuit described by Law.com on July 23, 2025, Lopez Ameer accused Avis Budget Group of defamation, alleging that the company wrongly reported his rental car stolen. He says police surrounded him and the error led to his firing in January 2025; the supplied evidence does not report an outcome.
Imagine renting a car, going to work, then being surrounded by police because the rental company reported your vehicle as stolen. That’s the nightmare Lopez Ameer says he lived through, and he’s suing Avis Budget Group for defamation, alleging its error led to his January 2025 firing.