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NYC Car Renters Get Ripped Off on E-Z Pass Fees

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A post from the Twitter page of New York City Comptroller Scott Stringer emphasizes the high fees car rental companies charge for the use of E-Z pass.

According to a report released last Sunday, November 22, by City Comptroller Scott Stringer, customers in New York City are being taken for a ride by car rental companies’ exuberant fees for the use of E-Z pass.

Car-rental companies, such as Avis, Thrifty and Dollar, don’t only charge customers for tolls, but add on high fees that are ironically called “convenience fees.”

Stringer said that when renting a car in New York, customers are presented with two options: not use E-Z pass and pay for tolls in cash or select the rental car company’s E-Z pass program. With the latter choice, a customer who is on a four-day round-trip from New York City to upstate New York will end up paying from 82% to 270% more for tolls then if they were in a non-rental car.

“Why should these companies add on this tax at a time when consumers are struggling?” asked Stringer, who said the practice needs to be regulated even though it is technically legal.

Stringer based his report on the surveys of 11 companies. The results showed that to use an E-Z pass, 10 out of the 11 companies charged a daily “convenience fee” between $3.95 and $21.49. In addition, eight of the companies charged customers the cash rate for the tolls, despite the use of an E-Z pass that carries a discounted toll rate. Also, for renters who failed to sign up for the company’s “deal,” five hit its customer with up to $25 per toll in penalties for using E-Z pass.

In his report, Stringer calculated the difference between the cost of tolls and fees using a rental car and one’s own car for a trip from Brooklyn to Schenectady. The average driver with E-Z pass would pay $22.77 for bridge and Thruway tolls. While a person using a rental car could end up shelling out as much as $85.96 for the same trip.

In a statement, Stringer said, “Rental car companies are sticking consumers with huge ‘convenience’ charges that turn E-Z Pass into ‘Expensive Pass’, and that’s bad news for the thousands of New Yorkers who are planning to rent a car to see family and friends this holiday season.” His recommendation is for car rental companies to work with the tolling agencies in order to make a cheaper alternative. Stringer also called on the state to create legislation that would make any E-Z pass fees transparent and reasonable.

One of the only companies to respond to the report, Avis, said that its E-Z pass program is one of its “time-saving amenities.”

Spokeswoman Alice Pereira said, “This convenient solution can eliminate the need to carry change or wait in long cash payment lines at toll booths. The fee covers our costs associated with offering this convenience.”

Rachel Shapiro

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