Cashless toll roads, another hazard for car renters

Think of it as an invisible road hazard.

Three months after Joan Cox rented a Ford Fusion rental car in Orlando last summer, a surprise bill from Thrifty Car Rental landed in her mailbox. The company wanted 50 cents for a toll violation on the Beachline Expressway, a toll road that connects Orlando with the East Coast beaches and the Kennedy Space Center.

Oh, and one other thing: there was a $25 “administrative fee” for processing.

Cox, an information systems specialist from Wilmington, Del., didn’t recall blowing through any tollbooths during her Florida vacation. So she did a little sleuthing.

“It appears this has happened to many visitors over the last several years and is really quite an issue — almost a scam,” she says. “This also appears to be a setup to out-of-state travelers and a moneymaker for rental car companies.”

Motorists have made such accusations ever since there have been toll roads. Sometimes the charges stick. Back in 2008, MSNBC.com consumer advocate Bob Sullivan reported that a company called Violation Management Services, which processes toll violations for car rental companies, promised its customers online that it could turn “a costly customer service headache into a profitable customer service solution.” The company cleaned up its act after that report, removing the incriminating language from its Web site.

Such complaints are becoming more common as all-electronic toll roads get powered up nationwide. In 2010, the North Texas Tollway stopped accepting cash, making it the largest toll road to go cashless. Earlier this year, Florida’s Turnpike moved to an all-electronic system in Miami-Dade County. Anyone driving from Miami International Airport to the Florida Keys would be likely to face an invisible toll. Several other roads in Florida are scheduled to go cashless soon, including Miami’sAirport Expressway and Dolphin Expressway.

Here’s how it works: If you have a transponder, your account gets charged after you pass through the tollbooth. But if you don’t, the system takes a snapshot of your plate and subsequently mails you — or, if you’re in a rental car, the rental agency — a bill. On Florida’s Turnpike, for example, that bill comes with an extra $2.50 administrative fee — not $25.

“This can be such a tough situation to explain to a customer,” says Kathleen Hernandez, a spokeswoman for Dollar Thrifty Automotive Group. The company receives “thousands” of toll, parking and traffic violations each month from all the municipalities across the country. It then has to match the renter to the violation, which can be time-consuming. Thrifty charges $25 for a 50-cent violation because it’s a lot of work to figure out that Cox was responsible for the fine.

Thrifty goes out of its way to disclose the toll roads, according to the company. It hands out brochures warning of the tolls and pointing out which roads they apply to. It also offers, for a fee, an automated service called Rent a Toll that notes the license plate of the rental car and passes the toll charges along to the customer at the end of the rental. Some locations even permit renters to activate the service retroactively when they return a car if they suspect that they’ve failed to pay a toll.

“Ms. Cox’s frustration is understandable — and we do take some flak for the process, but we have honestly worked to provide options for the customer,” says Hernandez.

As to the assertion that this is a rental car scam, the car rental industry insists that it’s not. “This is not a profit center for the car rental companies,” says Bob Barton, president of the American Car Rental Association. “But unfortunately, we have been forced into a situation to provide such a system to facilitate the toll collections for the state.”

That’s definitely something to be aware of the next time you rent a car. You could find yourself driving down a toll road where your money’s no good, or worse, get hit with a toll months after your vacation. Even with the new toll roads, rental companies, citing the high cost of equipping their entire fleet, have made electronic transponders optional.

Incidentally, Cox doesn’t buy Thrifty’s explanation. She says that no one handed her a brochure when she rented her car, and no one offered to let her pay for any tolls retroactively. Even if they had, she would have turned them down, because she says she didn’t even know that she was driving on a toll road.

I’m inclined to believe the car rental industry when it says that it’s doing everything it can to disclose the road hazards and that it has no choice but to comply with the toll collection system. But that’s not the problem. Car rental companies could make every vehicle electronic-toll ready if they wanted to. Would it cost the companies more? Sure. Would it reduce the number of complaints? Absolutely.

Letting a car with no working transponder off the lot in 2011 is like renting someone a car without seat belts or windshield wipers. It’s irresponsible.

  • Pablocruise

    I recently had exactly the opposite problem with an Avis rental.  Without telling me, the Avis car had an automatic toll transponder installed.  I didn’t notice the device (it was behind the rear view mirror), and I paid the toll in cash.  The device used by Avis can be turned on or off by Avis or the driver, and had been activated by Avis without telling me.  I was later billed for the tolls by Avis.  When I complained the charged was ultimately taken off, but only after the customer service representative told me that I was totally at fault for not having noticed the device, that the contract clearly stated that the device was on the car and was active (which it did not) and that I was told orally by the representative when I rented the car (which, again, it didn’t happen). 

  • Chris in NC

    cjr,

    The 470 highway system in Denver is very confusing. There is C-470 which runs from I-70 west to I-25 south which does not have tolls. The toll component is E-470 and the Northwest Parkway. There is also a variable toll rate on the HOT lanes on I-25. The toll rate depends on traffic conditions.

    SC Flier is right about the “rip off.” Most travelers drive E-470 only to get to/from the airport. The rental car agencies charges per day for the transponder during the entire length of rental, not per day of use. At up to $8.95/day and/or $34/week, that is a hefty surcharge to be added to any toll fees.

    If you are renting a vehicle in Denver, avoid E-470 at all costs! As you say, the transponder rental will often exceed the actual toll use by up to several fold!

  • Chris in NC

    Dacke, it also depends on the transponder.

    Some systems are fixed to the windshield and are for a single vehicle only. Others can be moved to different vehicles.

    Florida’s Sunpass actually covers multiple toll systems in Florida only. Few know that there are separate toll authorities like the MDX, O-pass, E-pass, etc., where Sunpass is the “universal” system.

    We travel to Florida enough that it was worth the cost to purchase a Transponder, but it is not compatible with NE systems.

  • Chris in NC

    BTW, the other pitfalls that you may encounter when using your own personal transponder on a rental vehicle…

    1) If the vehicle already has a transponder, you need to turn it off, otherwise, you will get double billed
    2) You may not be able to register the rental vehicle on your transponder, however, the vehicle license plate information is NOT used unless the transponder is defective. So, if the transponder works, then you technically don’t need to register the vehicle.
    3) If you purchase a transponder once you arrive, you may not be able to activate the transponder instantly! Sunpass requires activation M-F only and some systems like the MDX require 24 hours to become active

  • http://blogs.ocweekly.com/stickaforkinit Dave Lieberman

    I’m sorry, I don’t buy it for a second. I was just in Orlando, driving on the Beachline. First of all, the signs itself for the road have a red outline of Florida around the 528 and the word “TOLL” right next to it. Second of all, there tollbooths. It’s not a cashless toll road. There are signs starting a mile and a half before each toll booth and a giant barrier toll at each place.

    I see the problem for things like some of the truly cashless ones like the ones near Houston or the CA-91 Express Lanes near Los Angeles, and I hate to be heartless, but if she missed the giant signs on the Beachline, then the $25 is pay-more-attention-next-time tax.

  • http://blogs.ocweekly.com/stickaforkinit Dave Lieberman

    E470 transponders are not compatible with any system outside of Colorado. Florida transponders (E-pass, SunPass, O-Pass, etc.) are only usable in Florida. California transponders (FasTrak) are only usable in California. The only large area that has interchangeable toll tags is the E-Z Pass system, which goes from Maine to Virginia, from New York to Illinois.

    It’d be nice to have a nationwide standard, but that would be, you know, work.

  • The Irish Black Rose

    I recently traveled to Dallas to visit some friends. I had not lived in the area for more than 5 years so I was unaware the toll roads went cashless. When I rented a car through Enterprise I was never advised of the toll road situation or offered a toll tag. If it wasn’t for one of my friends who lives in the area telling me about it while I was leaving the airport in the rental car I would have been charged multiple times for going through tolls. As it was I had to spend extra time driving from place to place avoiding the toll roads and taking side streets. The rental car companies DO NOT advise of the toll road situations because they can make money off people who are not aware. Disgraceful.

  • Jeanine

    Well, there is of course, no reason why anyone should believe anyone on the internet, however my experience tallys with both your and the poster’s accounts:  I saw the general TOLL signs for the 528; I saw (and paid at) the regular tollbooths; I didn’t see any cashless toll plazas; and I got a bill for the cashless tolls regardless.

  • TomRI

    They offer you XM radio and a GPS but they can not give you a transponder?  Why can we not use our own transponder in other states like FL and TX while we are on VACA also?   The car rental companies just want the extra $25 fee they double bill each rental car that comes in —– like a bagage fee that is not in the price.

  • djp

    As a tourist, if you arent familiar with these routes you can easily pass these. Especially the ones where there is a side exit to pay.  Many may confuse this with how other places operate such as the NY State toll system or Dulles airport toll road…where the toll booths are on exits

  • TomRI

    Dave, my sister was charged a toll from Avis for driving on the beachline 2 hrs before her flight landed.  The toll signs are on the road most of the time where you can not make a U turn or leave the road to go elsewhere.  Transponders are now MANDATORY in these areas for residents, why not tourist reniting too?

  • TomRI

    RI EZ Pass takes 24 hours to activate and costs $20 to set up with a $20 deposit.  this can be used in New England and NY State.

  • djp

    I also live in Washington.  to clarify some of the terminology….

    What they did on 167 was install what is called a NOT lane which is for vehicles of 2 or more people its free. For single drivers there is a toll.  This only covers the northern 10 miles of the highway. 

    They are planning on building a similar HOT lane on I-405 from bellevue on north to the merger of I-5.  This will instead be a 3+ person HOT lane.

    In Virginia on the 405 beltway they are building a HOT lane. 

    Lake Washington divides Seattle from Bellvue and the mountains.  There are only two bridges across it…I-90 and SR 520.  The other option is to take I-405 and loop around the lake which adds about 15 miles to your drive.

    The issue is they need to build the SR 520 bridge and widen it from its current 2 lanes each way. Part of the dabte in this project is how wide will it get, where there be separate HOT/HOV lanes, will there be a dedicate light rail line on the bridge.  To pay for it they need to charge a toll.

    If they charge a toll then people will bypass 520 and take the I-90 bridge which means they really need to charge tolls on both bridges.

    Because of traffic flow this will be an electronic system.

    This new electornic system they are looking to implement has been an utter disaster.  The idea is for the tolling sytem to be universal which would cover the HOT lanes, the bridges, and the state ferry system.

    Currently the Tacoma Narrows bridge system is a disaster where the new contracted system isnt accuratly charging drivers.

  • Pamajama1216

    I’m not mad at the rental car companies so much as I’m mad at the states who make it inconvenient for people traveling through their states. And not just people renting cars but people driving their own vehicles. The Illinois tollway system has I-pass and as of now they still have manned booths except on exit ramps. I traveled east and was able to use my I-Pass because there is reciprocation between the 2 companies. Why can’t all the states have a reciprocation system. My friends traveled to Colorado to visit family and got screwed because of the all electronic toll system Colorado has. They had their I-Pass in their car like always but couldn’t use it. Yes a $25 fee to process a $.50 toll is ridiculous! With everything computerized, how difficult and time consuming would it be to find who had the car? I don’t like being forced to pay a rental fee on something I might not use and I can see the rental car companies charging rental for this item even if you don’t use it if they were forced to install these in all their cars. Then paying the tolls on top of that (which I have no problem paying the tolls). On my annual Disney World trip in October, I had the option of using the transponder in the car. But I didn’t want to pay a 10 day rental for something I’d use going to/from the airport, 2 days out of 10. Nope, I’ll pay the cash since I can. So I took the transponder off the window and set it in the center console. Now if I only had to pay rental for the transponder for the number of days of actual use (my 2 days out of 10) then I might be a little amenable to renting one. Of course I could always buy a transponder for every state that I travel through. But they seem to mainly have a $20 minimum balance. I checked into purchasing a transponder for Florida since I travel there a lot.
    Maybe tourists need to start contacting the states of all electronic tollways and let them know they’ll take their vacation dollars elsewhere unless there is a tourist friendly option.

  • Pamajama1216

    Florida toll road from the airport to Disney World is well marked as to whether you’re using cash or the electronic pass which side of the road you use. It’s not leaving the highway. Just picking left lanes for e-pass or right lanes for cash. And that’s how it’s stated.
    But I agree that signage needs to be complete and informative whether you can pay cash or you need an e-pass. And early enough before you get on the entrance ramp and are trapped.

  • Pamajama1216

    Are the toll roads marked as cashless or just marked as toll roads?

  • Pamajama1216

    The cashless tolls are in the process of being implemented in Florida. I read about them before my October trip. Researched that the one that I used to get from the airport to Disney World wasn’t affected yet.

  • Pamajama1216

    That’s about the only good thing on the Illinois Tollway (Chicago area resident speaking). Hopefully that practice will continue. As of Jan. 1 they’re doubling the toll for cars.

  • Pamajama1216

    There is actually talk of trying to use the transponders to cite speeding tickets. They know how long it takes at the speed limit to get from booth A to booth B. If you get there before that, you’d be issued a speeding ticket. Another way of getting additional revenue.

  • Pamajama1216

    I do NOT want to pay for a transponder just because it is in my rental car whether I use it or not. It is NOT a piece of equipment necessary for my travel. Next they’ll start charging for a spare tire, heat or a/c, etc. The rental car companies would be raking in transponder rentals from people who wouldn’t even drive on a toll road. Why penalize all travelers.
    People need to research their trips to make informed decisions. But the states also need to be upfront about letting tourists know BEFORE they get on a toll road whether or not it is an all electronic roadway.
    I like the state that takes a picture of the plate if you don’t have a transponder and mails you a bill. But you do pay a processing fee. This is just another way of cash-strapped states gouging people for more money. Unfortunately the tourist seems to be the biggest cash cow for them.

  • Pamajama1216

    I can only speak from my friend’s experience when they drove to Colorado and they had the Illinois Tollway I-Pass and it was not accepted. 
    I think EZ Pass (east coast pretty much) and I-Pass are the only ones that reciprocate. I flew to Maine and used my I-Pass in my rental car all over the area on the EZ Pass roads. Loved it! Made travel so much easier.

  • Pamajama1216

    Why should I pay for a transponder rental if I’m not driving on tollways. If these transponders are mandatory in a rental car, you can be sure they are not going to just let you drive around without paying a daily rental fee for it. Mandatory installation on rental cars isn’t the answer.

  • Marchair53

    Well, it’s been 3 years, so memory is not crystal clear. The road was marked as a toll road. I don’t recall whether it was marked as cashless — but there were no toll booths or any place to pay. It was the/one-of-the road/s to the Dallas airport, so we, as tourists, couldn’t avoid it. (We couldn’t find any way to avoid it. Perhaps locals know tricks to avoid it that we didn’t.)

  • Cherioak

    I disagree with this.  I DO believe this is a moneymaker for the companies.  We were in Orlando this past September.  We were offered a toll transponder for the princely sum of $6 a day.  We declined, we knew the area and handled our tolls (we bought a sunpass).  We did NOT spend $6 a day. Many days we didn’t require a toll at all.  The company we rented from was Dollar.  They are making money off this, especially from the international travelers who ddo not understand the toll system.

  • http://pulse.yahoo.com/_IC7MOZOWRMULOLHHGKWCNLQ3ME yahoo-IC7MOZOWRMULOLHHGKWCNLQ3ME

    I was just there last week march 2012 and no they are not marked as cashless, just a small blue sign that says toll road (not a state sign), so even that could be easy to miss.  If you look to the side you see signs that say CASH option, so you at least expect the unmanned coin stations, but there is none.

  • foampositesonline

    Dollar Rent a Car just got charged $202 for 8 so-called INVISIBLE toll roads driving from Miami International Airport to Key West The keyword is is “INVISIBLE” if it’s invisible it’s a trap and is illegal. I need to get a job with Dollar because $25 administrative fee per toll road….my check will be like $30k/month working with them. 

    Sincerely,
    http://www.HipsterSpace.com

  • fu8ar

    Yes they should have transponders in cashless toll areas. It should be part of the customer service aspect. At least if I were running a rental service I would to curb the costs in time and money. Not to mention time dealing with complates from those where communication broke down pertaining to toll locations

  • jasonrose231

    There is no Cashless toll booths in the Chicago Metro. All of the mainline toll booths have Cash Lanes and Open Road Tolling. All of the exit/entrance tolls have iPass and Coin Lanes.