Avis Budget paying $10M penalty to settle Defense Department overcharging claim

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Rental cars [Credit: alexfan32/Shutterstock.com]
The Department of Justice alleged that some of the fees Avis charged already were included in the rental rate. Photo Credit: Alexfan32/Shutterstock

Avis Budget Group has agreed to pay $10.1 million to resolve allegations that it violated the False Claims Act by fraudulently overcharging the U.S. government for rental services, the Department of Justice announced last week.

The government alleged Avis Budget knowingly falsely billed and received payment between Jan. 1, 2014, and Dec. 31, 2019, from the U.S. Department of Defense's Travel Management Office for unallowable supplemental charges to car rentals, including collision damage waiver and loss damage waiver insurance; supplemental liability coverage and additional liability insurance; personal accident insurance; personal effects coverage and personal effects protection; and late turn-in fees.

In addition, some of the fees charged already were included in the rental rate, according to DOJ.

"The claims settled by this agreement are allegations only, and there has been no determination of liability," the DOJ said in a statement on its website. 

Avis Budget in a statement to Business Travel News said, "We are pleased to have signed an agreement reflecting our work to address issues raised by the U.S. government."

Source: Business Travel News

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