Parking fine refunds could cost Camden Council £10m

Published: 24th February, 2011
by RICHARD OSLEY

THE Town Hall is facing a possible refunds bill of around £10million after a court ruled it overcharged motorists who paid parking fines using credit cards.

Camden Council  finance chiefs are counting the cost of a High Court judgement handed down on Friday which said the Town Hall had taken too much money from drivers who paid their penalty charges with plastic. An administration fee was unfair and above statutory limits, the judgement ruled.

The council has not disclosed how much they could be liable to pay back but insiders say it is a “big figure” almost certainly in the double-digit millions. It comes at the worst possible moment for the Town Hall, with squeezed budgets dominating all discussions.

The size of the payback hinges on how many drivers apply for a refund and some motorists may not even know that they had paid too much and are eligible for money back. Some may not want to bother with the process for small amounts.

But it will be more than worthwhile pursuing for big companies and supermarkets that have regularly paid the extra charge. It is their refunds that could be where the council suffers most.

The Town Hall said it was “disappointed” with the ruling and officials and councillors will discuss the possibility of appealing against the decision later this year.

The previous Liberal Democrat and Conservative council thought it was leading the way when at the start of 2009 it introduced credit card payments for paying fines. But the administration fee charged was ruled unfair after being challenged through PATAS, the country’s parking adjudicator service. The judgment was upheld by Mr Justice Barnett on Friday in the High Court. He described the case as “procedural impropriety”. 

Camden Council stopped charging the 1.3 per cent extra fee in July 2009 and Labour inherited the case after the coalition left the Town Hall last May.

Finance boss Councillor Theo Blackwell said: “Companies up and down the country charge for credit card transactions, so I have some sympathy with the previous administration for doing this. 

“That said, recouping lots of money from the council will ultimately hit our capital budgets, money we are targeting on school repairs. The more utilities companies and supermarkets claim back for parking in the wrong place, the less we can spend on classrooms.”

Parking campaigner Barrie Segal, from the website www.appealnow.com, which helps drivers claim refunds on unfair tickets, said: “I am pleased with the High Court’s judgment against Camden Council as it follows victories I have had against them before the parking adjudicator. 

“It was astonishing that Camden brought in the credit card surcharge, as they must have realised the risks involved, but this just indicates the level of arrogance which pervades the council’s parking enforcement.” 

Mr Segal added: “It will be interesting to see whether Camden fulfill their obligations to issue refunds.”

A Town Hall statement said: “The council only sought to recover the costs incurred when people took the decision to pay their penalty charge notices using a credit card. 

“This was not something they had to pay, and, indeed, three other payment options where the charge was not applied were available. 

“We are disappointed by the ruling and will be reflecting on the judgment and the implications for the council in the coming days.”