Driver fury as parking ticket debt firms record ‘ disproportionately high’ 63% profits
According to a government certificate, companies that receive driver fees to save park ticket debts operate more than 60 percent of the average profit margin.
Housing, Communities and Local Government (MHCLG), this figure is “market failure”, AA’s margins “disproportionate high” said.
Debt rescue agencies are employed by parking operators to pay for unpaid tickets and usually add an additional £ 70 per ticket for drivers.
These charges would be banned when the conservative government brought an application code in February 2022, but after four months, the parking companies withdrew after a legal difficulty.
A new counseling certificate that determines the proposed code of the current Labor Party government is that the value of £ 70 is “more likely to be higher than it may justify” but “more evidence”.
Healing agencies added that the average profit margin is approximately 63 percent ”.
According to the document, this can be compared with extremely innovative companies although it provides “standard services such as payment plan presentation”.
“Therefore, we do not think that they offer them significant innovative services, and therefore high profits can be an indication of these companies with a lot of control on the market, thus showing that there is market failure.”
Park operators can take the drivers to court if they continue to resist paying tickets.
MHCLG, debt rescue agencies, if the rate of payers were stable, even 26 £ 2 per ticket will break, he said.
Jack Cousens, President of the Road Policy in AA, said: “The 63 percent profit margin feels highly high for the services provided.
“This only emphasizes the need to block the sector and balance for everyone.
“There is an extreme cohort among some private parking operators, where they deliver cases to debt rescue companies for apparently harmless charges.”
In the original consultation, he added that the ban on debt recovery fees was “the right position ve and that he was last“ under the sign ”.
Motoring Research Assistant Director Steve Gooding said, “The profit margins announced by the government helps to explain that there are more than 180 private parking companies to buy vehicles holder records from DVLA and send demands to drivers – this is a very large and profitable business.
“The fact that the private parking industry is not more clear about its activities is part of the problem and its reluctance to open its books to official review shows why ministers should follow their plans to bring transparency and independence to this sector.”
The latest analysis by PA News Agency and RAC Foundation found that 4.3 million tickets were given to UK drivers between April and June by private companies.
This was a 24 percent increase compared to the same period last year.
A BPA spokesman said that “the government strongly opposes profit calculations ve and called to publish the methodology behind these figures”.
“The figures presented cannot reflect the reality of the misleading and debt solution sector.”
He insisted that the aim of debt rescue fees was to be a fairek a fair and effective deterrent against deliberate payment ”.
A MHCLG spokesman said: “This government inherited a private park market that does not include transparency and protection for drivers.
Uz We share disappointment, so our private parking code will increase the standards in the industry and take into account parking operators.
“We consulted at the current border on debt rescue fees and we will publish our response as soon as possible.”
