Los Angeles, CA: Avis Budget Rental Car Group LLC is facing an unfair business practices class action lawsuit alleging the car rental agency indiscriminately charged drivers for traffic tickets they incurred while renting Avis vehicles, without providing renters an opportunity to protest them.
Filed in federal court in New Jersey, the lawsuit claims that Avis paid traffic tickets that it received in the mail without giving any notice of the charges to the people who rented the vehicles that were ticketed. By so doing, Avis denied the renters, its customers, of their right to due process.
ATS Processing Services LLC, a ticket-paying service Avis uses that allegedly charges drivers steep handling fees for the payment of these possibly warrantless tickets is also a named defendant in the lawsuit.
According to the complaint, "Avis Budget unilaterally chooses to pay such fines on behalf of class members ... very often, if not always, without notice to the class member, and without making any effort to contest the alleged fine on behalf of the class member, even though Avis Budget has no knowledge as to whether the class member actually committed the purported infraction."
The lawsuit goes on to allege that while the Avis rental agreement signed by plaintiffs clearly states that renters will be responsible for any fines incurred, as well as processing fees, it does not include a waiver of renters' rights to contest an infraction, and does not specify the cost of processing fees.
According to the lawsuit, lead plaintiff Dawn Valli was automatically charged $180 for an alleged speeding violation after she rented a car from Avis Budget, $150 of which covered the fine, and the remaining $30 of which represents an "unreasonable and excessive"handling fee.
The lawsuit targets complaints that are recorded by automated devices, such as speeding and failure to pay toll tickets. In these cases, the driver is not immediately aware that he or she has been ticketed and is powerless to act until being notified. However, Avis applies a blanket policy to these types of tickets, which it receives in the mail, of immediate payment, which is tantamount to an admission of guilt the lawsuit alleges.
Avis sent Valli a demand for payment a full 45 days before the deadline to contest her ticket, at which point Avis had already paid on her behalf, according to the complaint.
The class is suing under the New Jersey Consumer Fraud Act, under which it is seeking treble damages. The class also asserts claims for unjust enrichment against both defendants and breach of the implied covenant of good faith and fair dealing against Avis.
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.
The case is Valli v. Avis Budget Rental Car Group LLC et al., case number 2:14-cv-06072, in the U.S. District Court for the District of New Jersey.
