PayByPhone Sued Over Allegations It Starts Parking Timer Before You Pay

PayByPhone is being sued over allegations that its parking app starts your timer before you've finished paying.

A proposed class action lawsuit filed February 11, 2026 in California federal court claims the app begins counting down your parking session the moment you select a duration before you've entered a payment method or hit the final pay button. By the time your transaction goes through, you may have already lost a minute or more of the time you paid for.

How it allegedly works

Traditional parking meters don't start until after you pay. According to the lawsuit, PayByPhone works differently. The complaint alleges that while you're on the checkout screen, searching for a parking spot, entering a new card, or just navigating the app, the clock is already running. The screen reportedly still shows the full duration you selected (like "Parking for 15 m"), so there's no visual cue that time is slipping away.

The lawsuit also points to a financial incentive: PayByPhone earns a $0.35 service fee on every transaction. If your time expires sooner than expected, you're more likely to pay for an extension and another $0.35 fee.

Who's covered

The lawsuit seeks to represent PayByPhone users in California, Florida, Massachusetts, Washington, New Hampshire, and Pennsylvania who paid for parking through the app in the past several years.

Where things stand

No settlement has been reached. This is a newly filed lawsuit Alicea v. PayByPhone US Inc., et al., Case No. 3:26-cv-01266. PayByPhone has not publicly responded to the allegations.

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