Car2Go To Pay $1 Million To Settle Class Action Alleging Unnecessary ‘Driver Protection Fee’

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Car2Go Driver Protection Fee Class Action Settlement Overview: 

• Who: Car2Go has agreed to pay $1 million to settle a class action lawsuit.
• Why: Car2Go was accused of charging an unnecessary “driver protection fee” which cost users $1 per trip. 
• Where: The settlement applies to former Car2Go users in Alberta, Ontario, BC, and Quebec.

Car2Go membership holders may be due compensation after the company agreed to pay $1 million to settle claims it charged drivers an unnecessary fee. 

Plaintiffs in a class action lawsuit filed against the car sharing company argued Car2Go included an unnecessary “driver protection fee” with every transaction starting in 2015, reports the CBC.  

Car2Go claimed the $1 fee was put in place to protect consumers from suffering greater financial injury in the event they got into an accident while driving a Car2Go vehicle. 

By implementing the $1 fee, Car2Go said it was able to lower the insurance deductible for drivers from $1,000 all the way down to $250, reports CBC. 

Plaintiffs argued, however, that the fee was unnecessary, since many drivers would already be protected from liability through insurance from their credit cards. 

Car2Go Driver Protection Fee Class Action Settlement

The settlement applies to users in BC, Alberta, and Ontario who spent at least $10 in driver protection fees after March 25, 2018 or March 25, 2017 for those in Quebec.

Less than two thirds of a prorated $1 million will be made available to claimants, with the rest going towards fees, reports the CBC.

Car2Go boasted more than 450,000 users in Canada before the company ended its North America operations last year. 

The German company has since merged with DriveNow, another car sharing service, operating as “ShareNow” in certain parts of Europe, reports the CBC.  

A group of Metro Vancouver taxi companies tried to get the licenses of Uber and Lyft overturned early last year in an effort to keep the ride sharing companies from being able to operate in the area. 

Did Car2Go ever charge you a ‘driver protection fee’? Let us know in the comments! 

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