Consultation response: DCLG Parking reform

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1 Consultation response: DCLG Parking reform Response by the Money Advice Trust Date: May 2015

2 Contents Page 2 Page 3 Page 4 Page 5 Contents Introduction / About the Money Advice Trust Introductory comment Answers to individual questions DCLG Parking reform 2

3 Introduction About the Money Advice Trust The Money Advice Trust is a charity founded in 1991 to help people across the UK tackle their debts and manage their money wisely. The Trust s main activities are giving advice, supporting advisers and improving the UK s money and debt environment. We help approximately 1 million people per annum through our direct advice services and by supporting advisers through training, tools and information. We give advice to around 200,000 people every year through National Debtline and around 40,000 businesses through Business Debtline. We support advisers by providing training through Wiseradviser, innovation and infrastructure grants. We use the intelligence and insight gained from these activities to improve the UK s money and debt environment by contributing to policy developments and public debate around these issues. Public disclosure Please note that we consent to public disclosure of this response. DCLG Parking reform 3

4 Introductory comment We have concentrated in our response in raising issues with private parking on privately owned land. The enforcement of public Penalty Charge Notices by private enforcement officers is subject to the Tribunals Courts and Enforcement Act 2007 legislative changes brought in from April Whilst we have major concerns about the activities of private enforcement agents in that context, we have raised these with the Ministry of Justice as part of their first year review of the unintended consequences of the regulatory changes. We do not believe that the issues in relation to this type of enforcement are the same as those that apply in the context of parking on private land so do not intend to reiterate these concerns here. DCLG Parking reform 4

5 Responses to individual questions Question 1: Do you think there are problems with how parking on private or public land is regulated, or the behaviour of private parking companies? Yes, we believe there are problems with how parking on private land is regulated and that the behaviour of private parking companies can involve what the paper describes as unscrupulous practices. Question 2: If you answered Yes to Question 1, what problems do you think there are with parking on private land, or the practices of parking control companies managing parking on private or public land? In October 2012, clamping and towing on private land was banned in England and Wales under the Protection of Freedoms Act 2012, but there appears to be confusion still as to the powers that private landowners have where people park on private land. It is important to differentiate between the situation with regards private land and public land. As far as we can see, legislative changes mean that there should be no threat by landowners of the use of bailiffs or of clamping or towing away on private land. It appears that the only legal route to recover the amount claimed by the landowner is via a small claim in the county court. There appears to be a substantial area of dispute in relation to whether private landowners are legally justified in asking for payment in return for parking on land. There have been many cases reported of companies charging excessive amounts for parking on private land. It would be extremely helpful for the legal position to be clarified. Legislation should limit such demands for payment to a set, transparent tariff of charges that must be displayed publically in the car park and included in prescribed terms on required notices and letters. Further clarity should be provided as to any fees or additional charges that can be added to the bill. Where there is an invoice sent for overstaying and so forth, there is further confusion as to whether any amount can be charged and whether this should represent a claim for damages for actual loss to the landowner, or a penalty for contractual breaches. Are the amounts being charged disproportionate to the losses suffered? There are further arguments to the effect that no contract has been entered at all. We would very much welcome clarity as to the legal position. It appears in some cases that there is a deliberate blurring of the lines between the right for a public authority to issue a Penalty Charge Notice and what is effectively a private contract for parking on private land. Some of this confusion will be caused by the use of the term Parking Charge Notice which seems to us to be a title that is so similar that it will be likely to lead people to believe that they have received a Penalty Charge Notice. DCLG Parking reform 5

6 Furthermore, there should be a prohibition on any letters or notices that imply non-payment of a bill on private land can result in enforcement through bailiffs, clamping or towing away. It also appears that notices and parking signs are not always clear or prominently displayed. Clear rules should be put in place to make the rules transparent for motorists who park on private land. It would seem that the first principle would be a requirement for clarity of signage otherwise the whole premise for charging would be challengeable on the grounds of fairness. We believe that there should be further legal clarification as to what constitutes a reasonable contractual amount for parking on private land. There should be further clarity with regards the notices that can be issued for parking infringements. A set of statutory notices with prescribed terms that make it crystal clear that the bill for parking on private land is not a parking penalty notice would be a good innovation. There should be statutory prescribed wording to include paragraphs setting out the nature of the notice, the set tariff of charges that apply, the rights to dispute and appeal, and a legal notice setting out the consumer s rights on non-payment. Furthermore, we believe there should be access to a free, independent ombudsman service to complain about such charges, where the ombudsman has to power to order compensation be paid as well as dismiss the charge. We are not convinced that the appeals processes put in place by the two parking bodies are sufficient, unless it is mandatory to belong to one or other of the bodies before a private landowner can issue a charge. We are somewhat confused by the section in the paper under the heading Private off-street parking. This section sets out the concerns that have been raised about private companies issuing charges for parking on private land. One of the examples given is set out below. Failure to treat drivers fairly when they have incurred a penalty, including the failure to provide information, consider appeals fairly and the aggressive use of bailiffs. Whilst we concur with the concerns raised about the failure to treat drivers fairly, we are puzzled by the reference to the aggressive use of bailiffs. If our understanding is correct, the legal remedy for the non-payment of an invoice for parking on private land is for the company to issue a small claim in the county court. There is no ability for the company to use private bailiffs before court action as far as we understand it. If there are instances where private companies have threatened or indeed used private firms of bailiffs in these instances, this practice would appear to be unlawful. We would support the calls for specific action mentioned in the paper, such as mandatory membership of an accredited trade association and the introduction of a binding code of practice. We have some reservations as to whether these measures will go far enough in practice. DCLG Parking reform 6

7 Question 3: If you answered Yes to Question 1, what steps do you think the Government should take to rectify these problems? See our response to question 2 above. Question 4: Are you able to offer any evidence to support a case for change, or examples of best practice? We understand that there are many case study examples that have been reported by consumer bodies such as MoneySavingExpert and Citizens Advice. We do not have any case study evidence to submit at this stage. Question 5: Do you think there are other steps the Government could take to ensure that parking supports local shops and high streets? This is not really our area, but the introduction of a free grace period may help those who are just popping into a local shop and do not need to stay for long. If the aim is to encourage local shops and high streets, then ensuring that there is sufficient on- street and off-street parking would appear to be an essential requirement. Question 6: If you answered Yes to Q5, what steps do you think the Government should take to help support local shops and high streets, for example by encouraging the provision of free and competitively priced parking spaces? See our response to question five above. Question 7: Should there be an obligation for local authorities to offer the ability to pay for parking by cash within a reasonable distance of where they have parking (for example via ticket machines or via local shops)? We would suggest that it would be reasonable for there to be an obligation on local authorities to offer the ability to pay for parking by cash. The Financial Inclusion Commission report recently found that nearly two million adults in the UK do not have a bank account. 1 Those who are vulnerable, elderly or do not have access to either debit or credit cards will be at the risk of being treated unfairly if there are no facilities for payment in cash. We would express concern as to whether such complex machines breach any disability discrimination legislation. We would also point out that ticket machines are becoming ever more complex, with requirements to input vehicle registration numbers and so on. This trend to technological complexity would again affect those who do not find it easy to use such technology. 1 DCLG Parking reform 7

8 Question 8: Do you have any examples demonstrating best practice approaches in the UK or abroad? This is outside our area of expertise and we are therefore unable to comment. Question 9: Do you have any best practice suggestions for councils to follow? This is outside our area of expertise and we are therefore unable to comment. For more information on our response, please contact: Meg van Rooyen, Policy Manager DCLG Parking reform 8

9 The Money Advice Trust 21 Garlick Hill London EC4V 2AU Tel: Fax: DCLG Parking reform 9

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