$19M Payless Car Rental Settlement Ends Class Action Lawsuit Over Allegedly Unlawful Fees, Add-Ons

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A $19 million settlement resolves a class action lawsuit that alleged Payless Car Rental and Avis Budget Group charged consumers for add-on products that they had already declined.

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The Payless rental class action settlement received preliminary court approval on August 21, 2025 and covers all United States and Canada residents who, between January 1, 2016 and November 25, 2023, rented from Payless Car Rental in the U.S. and, in connection with that rental, subsequently paid Payless gas service option (GSO) and/or roadside protection (RSP) fees.

The court-approved website for the Payless car rental settlement can be found at PaylessRentalSettlement.com.

No action is required on the part of Payless settlement class members to receive up to $20 for each rental with a GSO charge and up to $12 for each rental with an RSP charge. Settlement payments will be distributed either digitally or by check at the settlement administrator’s discretion unless class members select a specific payment form on the website for the deal.

To select a specific payment method, class members can visit this page and log in with the unique class member ID found in their copy of the settlement notice. Class members may opt to receive their settlement payout by Venmo, Zelle or e-check by November 10 of this year; otherwise, payment will be sent digitally or by check as determined by the settlement administrator, the website says.

Should any payments remain uncashed or unredeemed within 90 days of receipt, those funds will be redistributed among the Payless settlement class, with the same $20 and $12 per rental limits, respectively.

Additionally, Payless Car Rental has agreed to change its sales processes regarding add-on and ancillary products and will now require affirmative consent from customers before charging them for such products.

A hearing is scheduled for December 2, 2025 to determine whether the settlement will receive final approval from the court. Payments will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Payless Car Rental class action lawsuit claimed that the company charged consumers for add-on services—namely, a gas service option and roadside protection—that they did not expressly agree to purchase or receive.

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