Payless Car Rental Fees $19M Class Action Settlement

Individuals who rented a vehicle from Payless in the United States between Jan. 1, 2016, and Nov. 25, 2023, and paid a Gas Service Option or Roadside Protection charge may be eligible to claim up to $20 per rental from a class action settlement.

Avis Budget Group Inc. and Payless Car Rental Inc. agreed to pay $19 million to settle a class action lawsuit alleging they improperly charged customers for GSO and/or RSP fees even when they declined those products.

Who is eligible for a car rental settlement payout?

Class members must meet all of the following criteria:

• They are residents of the United States or Canada.
• They rented a vehicle from Payless in the United States between Jan. 1, 2016, and Nov. 25, 2023.
• They paid Payless for a Gas Service Option and/or Roadside Protection charge in connection with their rental.

How much is the Payless class action payment?

• GSO charge reimbursement: Up to $20 per rental
• RSP charge reimbursement: Up to $12 per rental

The settlement allocates 52% of the net settlement fund for RSP fee reimbursement payments and 48% of the net settlement fund for GSO fee reimbursement payments.

No claim form required

Class members do not need to submit a claim form to receive a settlement payment. The settlement administrator will automatically issue payments based on Payless’ records.

Class members can choose to receive an online payment by submitting the payment election form on the settlement website.

Is proof required?

The settlement administrator already has the information needed to identify class members and calculate payments. Class members do not need to submit additional proof or documentation.

However, to submit a payment election form, class members need to provide the unique ID from their settlement notice.

Payout options

• Venmo
• Zelle
• E-check
• Paper check (only option if the claimant does not submit the payment election form)

$19 million car rental fees class action settlement fund

The $19,000,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: Not to exceed $5,000,000
• Attorneys' expenses: $32,451.27 (included in $5,000,000 fee amount)

• Service awards to class representatives: $5,000 each
• Payments to class members: Remaining settlement funds

Important dates

• Deadline to select payment method or opt out: Nov. 10, 2025
• Fairness hearing: Dec. 2, 2025

When is the Payless GSO/RSP fee settlement payout date?

The settlement administrator will issue payments after it completes claim processing and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that Avis Budget Group Inc. and Payless Car Rental Inc. violated the New Jersey Consumer Fraud Act by charging customers Gas Service Option or Roadside Protection fees even when they declined them. The plaintiffs also claimed the defendants received unjust enrichment by these charges.

The defendants denied any wrongdoing but agreed to settle to avoid further litigation expense and the possibility of a trial.

Sources

1. Official class notice
2. Official settlement website FAQ page