Payless Car Rental Fees Settlement: $19M

U.S. and Canadian residents who rented a vehicle from Payless Car Rental in the United States between Jan. 1, 2016, and Nov. 25, 2023, and paid for Gas Service Option (GSO) and/or Roadside Protection (RSP) charges.

No proof of purchase is required. Class members must use their unique Class Member ID to access the payment election form on the settlement website.

Payless Car Rental and its parent company, Avis Budget Group Inc., have agreed to a $19 million class action settlement to resolve claims that Payless added unfair and unauthorized fees to customer bills during the car rental process.

According to the lawsuit, Payless improperly charged customers for Gas Service Option (GSO) and Roadside Protection (RSP), even in cases where renters had explicitly declined those services. The suit alleges that this practice was deceptive and violated the New Jersey Consumer Fraud Act, among other state laws.

Customers reported that they were unaware of these added fees until after completing their rental, with some claiming that the charges were buried in fine print or added automatically during checkout. Plaintiffs argued that Payless used these hidden fees to inflate rental costs, misleading consumers into overpaying.

Although Payless denies the allegations and has not admitted any wrongdoing, it agreed to the $19 million settlement to resolve the litigation and avoid further court proceedings. The company is now providing refunds to affected customers as part of this resolution.

What Class Members Can Receive

Eligible renters will receive automatic cash payments for each qualifying rental. No claim form is required. Settlement payments will be distributed as follows:

• Up to $20 per rental for customers charged a Gas Service Option (GSO) fee
• Up to $12 per rental for those charged a Roadside Protection (RSP) fee

Customers who rented multiple times and were charged these fees on more than one occasion may be eligible for multiple payments. The exact amount each person receives will depend on the total number of qualifying rentals and the overall number of participants in the settlement.