The advent of electronic-toll highways was designed to make traveling
down toll roads easier for harried drivers. Goodbye brake lights, lines of cars and fumbling
for coins, hello electronic transponders and license plate-readers.
But if you're in a rental car in an unfamiliar city, driving
on an e-toll road with no cash lanes can leave you with a nasty charge on your
credit card bill.
As the number of cashless e-toll roads has risen, so have
the complaints about fees piled on top of fees.
In 2011, Seattle attorney Averil Rothrock launched a
class-action suit against Fox Rent A Car and Violation Management Services
after she returned from a Denver trip to find a $106 charge on her credit card.
The amount reflected two $3 tolls and two $50 "service fees." In the
lawsuit, Rothrock complained, "The 'service fee' is nothing other than
an illegal scam to collect from customers amounts they do not owe. She
contended that Fox gave customers no way to pay the tolls without incurring the
egregious fee, and that the two companies "conspired to turn Fox
customers' tolls into an illegal profit center for themselves."
Though the case settled almost immediately, Rothrock says, "I
get contacted about this all the time by people facing similar issues with car
rental companies, leading me to believe that it is a huge problem for
In 2012, New Yorker Jodd Readick filed a class-action lawsuit
against Avis after he was slapped with an irritating "convenience
fee" that he believes was left deliberately ambiguous in the fine print of
his rental agreement. A similar lawsuit in Florida against Hertz and PlatePass
was settled in 2013; the companies were ordered to provide $11 million in
Maze of fees
When CreditCards.com first wrote about the issue of rental car e-toll booth charges in 2011, disclosures about rental car policies for
cashless toll roads were not always clear. One upside of the complaints and
lawsuits from consumers is many national rental car companies have largely
revamped or clarified the fees they charge customers for using toll systems. In its settlement,
for example, Hertz acknowledged the suit "led to changes and modifications
being made to Hertz's rental agreement."
Avis and Budget
charge a $2.95 daily convenience fee for their e-Toll system, even on days when
the renter doesn't drive on a toll road. The fees max out at $14.75 per rental
per month. The driver also pays for tolls they've driven through at the
"cash toll rate," not the discounted rate normally given subscribers.
and Thrifty are moving in some states to a flat-fee, prepaid toll system
called Pass24. For $5.95 a day or $27.95 a week, customers in a handful of
states can prepay for both tolls and fees at one time.
charges a $4.95 daily administrative fee for customers using its PlatePass
system. Like Avis and Budget, that includes any rental days where the toll
transponder wasn't used, up to a maximum of $24.75 per rental per month. Hertz
also offers a Toll Day Pass; for between $9.90 and $14.30 a day, renters are
covered for all tolls and fees, with the promise that "you will never
receive any subsequent toll charges or administration fees."
Enterprise and National charge a $2.95 daily fee for their TollPass
program, up to $14.75 per rental period, along with the cost of the tolls.
"Rental companies, the big brands, get tens of thousands of violations
each month that go unpaid by the renter,
| -- Neil Abrams
Rental-car industry consultant
Although the increased clarity in rental agreements is a
step forward, some drivers still feel outraged by car rental company's toll
fees, largely because they often feel like they have no choice but to pay them.
While it's simple enough to turn down a rental car company's add-on insurance
-- usually you're covered by your own auto insurance -- if you're driving in an
area with cashless toll roads, you can't easily do without an electronic toll
transponder. Rental car drivers who opt out of the e-toll system, then
accidentally drive on a e-toll-only road or fail to find the cash lane in time,
will usually be charged with a toll violation, which often includes an
additional fee of between $18 and $25 a pop.
Even more vexing is that some rental car companies outsource their fee
collection to third-party agencies, which
tack on their own fees. Although it ostensibly makes the process more
efficient -- and allows rental car firms to keep a happy distance from a
sometimes-ugly customer service transaction -- customers end up losing.
One of the most widely used agencies, Violation Management Services of Great Falls, Mont., has an "F" rating from the Better Business Bureau in Washington. The BBB says the company showed "a pattern of complaints showing that consumers had unknowingly or did
not approve a compliance agreement regarding processing fees relating to
vehicle violations from rented vehicles from third-party business
contracted with this business." In its response to the BBB, the company said its existence is revealed in rental car agreements, and that it needs to move quickly to protect the fleets of rental car companies from being seized due to unpaid tickets.
Even if you figure out a way to avoid using the car
company's e-toll transponder system, you may end up being charged for it
anyway. When Sean White, of Hollywood, Fla., rented a car from Budget for a
two-week trip to Orlando, he brought along his own portable SunPass prepaid
toll device and never turned on the toll device in the rental car. But six
weeks later, his American Express card showed a bill for over $79 in tolls.
When he disputed the charge, American Express "reversed it, but then a month later
charged it back and sent me documentation of tolls collected in Texas with the
onboard device in the rental car." When White provided evidence he
paid his Florida tolls with his own SunPass -- and he hadn't been
near Texas -- the charges were reversed, only to reappear a few months later. The
problem took nine months to resolve.
Surviving the e-toll
For all its hassles, representatives of the rental car and
toll management industries naturally believe that the benefits of offering e-toll
systems in rental cars outweigh the drawbacks. "I think there's a
convenience element that most renters recognize and take advantage of,"
says Charles Territo, a spokesman for Arizona-based PlatePass. "And the
number of toll roads is only going to increase."
Neil Abrams, a rental car-industry constant, adds that
rental car companies are justified in tacking on administrative fees because
they incur their own costs related to managing tolls and violations.
"Rental companies, the big brands, get tens of thousands of violations
each month that go unpaid by the renter," he explains. Even with something
as simple as charging a renter for a toll, "there's time and labor
involved." The cost of all the paperwork adds up.
Abrams acknowledges that toll administrative fees
are galling to consumers. Even Dollar-Thrifty's Pass24 program, which aims to
create a single flat-fee for toll road usage, can be controversial and
confusing because "if you have one toll you get charged the same thing as
someone who has $20 in tolls. People see the charges on their charge card and
they don't understand what it is, notwithstanding that there's full disclosure
on the rental agreement."
|CASHLESS TOLL ROADS: 6 TIPS
car rental agreement carefully. Look at it online before you travel, or
take the time to actually read it at the counter. Ask the customer service
agent to explain fees if you don't understand them. If you choose to rent a car
with e-toll collection, ask how it is activated. Most national companies begin
charging daily or flat fee rates upon rental, while others won't activate until
you pass through an e-toll booth.
|2. Check out
an online map of where you're going to see if you'll be driving on toll
roads -- and if there's an easy alternative that avoids them altogether. A
quick online search can tell you how much each toll costs and whether there's a
cash lane available. You can also call your rental car company's toll-free
number for more info about how tolls are collected at your destination, or log
onto the website of the tolling authority.
for services on your own. Some e-tolling systems, including SunPass, let
you buy passes at retail outlets, including grocery stores, so you can avoid
your rental company's fees. Some tolling authorities also have a one-time
payment option. In San Francisco, for
example, once you know your rental car's license plate number, you can register
it online or by phone with the Golden Gate Bridge Highway and Transportation
District and pay a single one-way toll of $7 by credit card.
|4. Settle up
with the toll authority directly to short-circuit fees. Lisa Telles, a spokeswoman
for the Transportation Corridor Agencies, which operates toll roads in
California, points to their One-Time-Toll payment option at TheTollRoads.com,
where "paying within the 48-hour time frame halts the violation process. All
customers need to do is identify the location and toll, provide
the license plate number and a credit card number to pay the
toll." If you can get to it before your info is passed along to the rental
car agency, you may be able to avoid additional charges.
|5. Keep your
receipts and any other documentation you have of how, when and where you
paid for cash or electronic tolls. You'll need them if you dispute a
|6. Keep an
eye on your credit card bill, which should show toll charges and fees
within two months after your trip. If you see a suspicious charge, dispute it
with your credit card company -- but be prepared to duke it out with the rental
company as well.
Earlier stories: Renting a car? Beware phontom toll fee charges, Cashless tolls trigger rental fees