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Are you saying that you were denied Virgin miles at your local Avis location in the past, or that you were denied miles on other airlines? I was never able to earn miles or HHonors points on local Avis rentals until I learned (here on FT) that local Avis rentals do earn Virgin miles. So I'm not sure that there's been any "change" in policy.
By the way, does Hertz have a Hertz Local Edition near you? Until September 30, you can earn 3,000 Virgin miles with any Hertz rental using the Virgin CDP and PC codes. Details can be found in the FT Hertz forum, or under "My Offers" after you sign into your Virgin Flying Club account.