Private parking companies seem to be violating the law and their own guidelines when issuing tickets to motorists, according to the competition regulator today.
Inspectors from the Competition and Markets Authority (CMA) discovered harsh tactics that “may violate consumer regulations,” such as denying appeals for tickets that should have been canceled.
The watchdog also identified situations where drivers were pressured to pay the entire ticket amount, despite it being eligible for reduction to £20 according to the industry’s code of practice.
Some operators seem to be initiating the parking session timer as soon as a driver enters the car park, instead of when payment is made, using enforcement cameras.
This may have violated drivers’ right to review the terms and conditions prior to payment, resulting in some tickets being issued due to failure to pay within five minutes of entering a parking lot.
Some companies seem to have included ‘extra charges’—like fees for debt collection—which they might not be authorized to impose. This occurred in situations where drivers failed to pay a Penalty Charge Notice within a specific period.
It followed the CMA’s declaration that it has initiated a formal inquiry into one of the UK’s largest companies — Euro Car Parks — concerning tickets provided to drivers at fuel stations.
It will evaluate if it is reasonable to issue traffic fines to motorists waiting to access fuel dispensers or other on-site services, like car washes, and examine its appeal procedure.
In an open letter addressed to the private parking sector, which consists of approximately 200 companies, the regulator cautioned that other entities might be subject to investigations following the discovery of “practices suggesting possible violations of consumer regulations.”
An unprecedented number of tickets are being handed out to drivers as the rise in private companies raises concerns over ‘cowboy’ tactics.
Jack Cousens from The AA stated, “For too long, certain private parking companies have been overly aggressive in charging drivers who have committed no wrongdoing.”
Unfortunately, due to the industry’s negative and challenging image, many drivers simply endure the situation and pay, believing they won’t receive a just review if they contest the decision.
This measure is greatly required.
Simon Williams, head of policy at the RAC, stated: ‘The CMA’s conclusions and suggestions represent a significant advancement in guaranteeing fair treatment of drivers by private parking companies.’
The arguments presented by the regulator in public letters addressed to ministers and private parking companies emphasize several problems we have been seeking resolution for over many years, and they confirm that drivers are not always receiving just results when contesting tickets.
The CMA has brought much-needed attention to the appeals process and identified significant issues that require resolution.
In a message directed at companies, the CMA mentioned it was ‘worried that certain operators’ internal review procedures might not be functioning properly or uniformly’.
Its assessment of PCNs identified situations where “the internal appeal should have led to the cancellation or reduction of the PCN if the reasons had been appropriately evaluated.”
Its letter to operators stated: “In certain instances, PCNs might have been fully paid even though no payment (or only a lesser amount) was actually owed.”
It stated that there were instances where drivers were pursued for the full PCN amount ‘even though these amounts were not actually owed’ as they should have been lowered to £20 according to the industry code of practice.
The letter continued: ‘These actions might violate consumer laws, especially by not meeting the level of care and expertise required from operators.’
With regard to extra charges, it stated: ‘The CMA has noted instances of contract provisions among various operators that claim to permit operators to recoup additional costs and fees if a customer does not settle a PCN within 28 days…and which may lead the customer to pay amounts that the operator is not authorized to recover.’
Explaining that the clock had begun for certain sessions when entering a car park, it stated: ‘As a result, customers might not receive the full duration of parking they are entitled to.’
The CMA issued an additional letter to ministers containing suggestions before the highly anticipated Government Code of Practice, which seeks to address ‘cowboy’ operators and enhance the appeals process by establishing it through legal means.
This would complement the industry’s existing code, which critics argue lacks sufficient strength and results in operators essentially “grading their own work.”
Emma Cochrane, from the CMA, stated: ‘It’s time for all private parking providers to adhere to consumer regulations or face consequences from the CMA.’
Isaac Occhipinti, from the British Parking Association, which advocates for operators, stated: ‘We are dedicated to collaborating with the CMA and will thoroughly review its conclusions and apply any suggestions where suitable.’
Euro Car Parks was contacted for a statement.
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