Private parking firms in the UK may be violating consumer law and their own industry codes when issuing tickets to drivers, according to an investigation by the Competition and Markets Authority (CMA).
The watchdog uncovered practices that could infringe on consumer rights, including the rejection of appeals that should have been upheld and demanding full ticket amounts when a reduced payment of £20, as stipulated by the industry's code of practice, would have been appropriate. Some operators have also been accused of starting parking session timers from the moment a vehicle enters a car park rather than upon payment, potentially infringing on motorists' rights to review terms and conditions before agreeing to park. This practice has led to tickets being issued for exceeding parking limits within mere minutes of entering a lot.
Furthermore, some firms appear to have levied additional charges, such as debt collection fees, for unpaid parking charge notices (PCNs) within a specific timeframe, fees that they may not be legally entitled to collect. These practices, the CMA stated, could be in violation of consumer law by failing to meet the expected standard of care and skill from operators.
In response to these findings, the CMA has launched a formal investigation into Euro Car Parks, one of the UK's largest private parking companies. This investigation will specifically examine tickets issued to drivers using facilities at petrol stations, questioning the fairness of issuing tickets to those queuing for fuel or other services like car washes, and scrutinizing the company's appeals process.
Industry-Wide Concerns
The CMA has issued an open letter to the approximately 200 firms operating in the private parking sector, warning that further probes could follow. The watchdog highlighted concerns that some operators' internal appeals processes may not be functioning effectively or consistently, leading to PCNs being paid in full when they should have been cancelled or reduced.
Analysis indicates that drivers in Britain receive an average of nearly 48,000 parking tickets daily from private companies, a figure that has risen amid an increase in the number of private parking firms, fueling concerns about exploitative practices.
Industry groups have responded to the CMA's findings. Jack Cousens of The AA commented that some private parking operators have been excessively issuing charges to drivers who have done nothing wrong, and that many drivers pay up due to a lack of confidence in receiving a fair appeal hearing. Simon Williams, head of policy at the RAC, described the CMA's findings and recommendations as a significant step towards ensuring fair treatment for drivers by private parking operators, noting that the watchdog's focus on the appeals process confirms long-standing issues.
The CMA has also sent a separate letter to ministers, offering recommendations for an upcoming Government Code of Practice. This code aims to curb 'cowboy' operators and clarify the appeals process by placing it on a statutory footing, moving beyond the existing industry code which some critics argue is insufficient.
Emma Cochrane of the CMA stated that it is time for all private parking operators to comply with consumer law or face regulatory action. Isaac Occhipinti of the British Parking Association expressed commitment to working with the CMA and considering its findings and recommendations.