Avis Budget to pay $10.1M after being accused of overcharging military to rent cars

Wikimedia Commons/Raysonho

Jeff Goldman


Car rental giant Avis Budget has agreed to pay $10.1 million to settle allegations that it overcharged the U.S. government for six years as part of a deal to rent vehicles to military members.

The Parsippany-based company submitted false claims and received payment for unallowable supplemental charges to car rentals for items such as collision, supplemental liability, personal accident insurance and late turn-in fees from 2014 through 2019, the U.S. Attorney’s Office for New Jersey said in a statement.

The fees were already included in the government rate agreed upon by the Department of Defense’s Travel Management Office and Avis Budget, prosecutors said.

Avis Budget admitted no wrongdoing in agreeing to the settlement.

Of the $10.1 million, $6,732,660 is restitution, according to court documents.

Avis, Budget and Payless all operate under the Avis Budget umbrella. The company says it generates $9.1 billion in revenue annually from 11,000 rental locations worldwide. The company didn’t immediately respond to a request for comment from NJ Advance Media on Friday morning.

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