Avis Budget Hit With Class Action Over Traffic Violations

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Avis Budget Rental Car Group LLC was hit with a class action lawsuit for allegedly charging drivers for traffic tickets without giving them the chance to contest them.

The Avis traffic ticket class action lawsuit was filed in a New Jersey federal court on Sept. 30 by plaintiff Dawn Valli of Florida. In addition to Avis Budget, Valli also included American Traffic Solutions (ATS) as a defendant.

“ATS contracts with companies such as Avis Budget ‘to ensure vehicle owners are not held financially responsible for violations committed by drivers such as parking tickets or other traffic-related citations mailed to the vehicle owner,'” the Avis Budget class action lawsuit explains.

And ATS processed “the fines paid by Avis Budget . . . and in concert with Avis Budget imposes an administration/handling fee” on Avis Budget customers.

Valli rented a car from Avis Budget and incurred a traffic ticket for speeding during the rental period.

However, Avis Budget “did not provide Mrs. Valli any notice of the alleged speeding violation until after the defendants paid the fine. [Avis Budget] charged Mrs. Valli’s credit card $180,” which included $150 for the violation amount and $30 for a handling fee, which Valli said is “unreasonable and excessive.”

She claims that “Avis Budget pays alleged toll violations, speeding tickets, and other traffic infractions . . . incurred by class members, often prior to providing the with notice of the alleged fine, and then charges them an administrative fee for processing such violation.”

According to the Avis Budget class action lawsuit, the car rental agreement says that when it comes to traffic violations: “You’ll pay all fines, penalties, and court costs for parking, traffic, toll and other violations, including storage liens and charges. You will also pay a reasonable administrative fee with respect to any violation of this agreement, such as repossessing or recovering the car for any reason.”

Valli claims that the rental agreement does “not include any language that serves to waive the rights of the class to receive notice of the alleged fines or to contest the alleged fines.”

She also says that Avis Budget does not define what is meant by “reasonable administrative fee.”

In addition, Valli says that the rental agreement does not give authority to a “third party to pay any fine on behalf of the” Avis Budget customers, “collect the amount paid . . . or charge the class any administrative, handling or any other, fee.”

She believes that renters should have the opportunity to contest the traffic violations, but since Avis Budget automatically pays the fines, that it’s an admission of guilt. Valli is specifically targeting speeding violations and toll violations.

Valli is charging Avis Budget with violating the New Jersey Consumer Fraud Act, unjust enrichment, breach of implied covenant of good faith and fair dealing.

The class is represented by William J. Pinilis, Laurence D. King and Linda M. Fong of Kaplan Fox & Kilsheimer LLP and Marc A. Wites of Wites & Kapetan PA.

Counsel information for the defendants is not yet available.

Representatives for both sides did not immediately respond to requests for comment on Monday.

The Avis Budget Class Action Lawsuit is Valli v. Avis Budget Rental Car Group LLC et al., Case No. 2:14-cv-06072, in the U.S. District Court for the District of New Jersey.

UPDATE: On May 10, 2017, a federal judge denied Avis Budget’s motion for dismissal in its entirety. The judge concluded that plaintiff Valli adequately stated claims arising out of the company’s way of handling traffic and other fines incurred by its car rental customers.

UPDATE 2: On July 1, 2019, Avis rental car drivers asked a federal judge to certify a Class of drivers who were allegedly charged undisclosed traffic violation fees and fines.