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Press Release

Avis Budget Group to Pay $10.1 Million to Settle False Claims Act Allegations for Overcharging United States on Rental Vehicles

For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK, N.J. – Avis Budget Group Inc. (Avis Budget), which includes its wholly-owned brands Avis Car Rental, Budget Car Rental, and Payless Car Rental, will pay $10.1 million to resolve allegations that it violated the False Claims Act by overcharging the United States in connection with rental vehicles, Acting U.S. Attorney Rachael A. Honig announced today.

According to the contentions of the United States contained in the settlement agreement:

Avis Budget made false claims in connection with obtaining payments under an agreement with the United States managed by the Department of Defense Travel Management Office. From Jan. 1, 2014, through Dec. 31, 2019, Avis Budget submitted false claims and received payment from the United States for unallowable supplemental charges to car rentals, including collision damage waiver/loss damage waiver insurance; supplemental liability coverage/additional liability insurance; personal accident insurance; personal effects coverage/personal effects protection; and late turn-in fees. In addition to being unallowable, some of the fees Avis Budget charged were already included in the government rental rate.  

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; Regional Agent in Charge for the New Jersey Resident Agency, Richard Monticello; Regional Agent in Charge for the St. Louis Resident Agency, Mitch Berry, and personnel of the Department of Defense, Defense Travel Management Office, under the direction of Director William R. Mansell Jr., with the investigation leading to the settlement.

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

Updated June 10, 2021

False Claims Act
Press Release Number: 21-261