Borough’s credit card policy is rejected

17 June 2009

A London borough council could be forced to pay back thousands of parking tickets, after its credit card fee policy was ruled unlawful.

Camden council has been charging 1.3% extra for penalty charge notices (PCNs) paid by credit card. But the Parking and Traffic Appeals Service (PATAS) upheld an appeal by a firm which objected to the charge, and has asked Camden to pay back the ticket in full.

The ruling could have ramifications across London, with the boroughs of Harrow and Merton also applying the credit card charge to PCNs.

In January, London General Transport Services received a £120 PCN from Camden, but it appealed on the grounds that it was unfair to charge an extra 1.3% for a ticket it was obliged to pay.

PATAS adjudicator Henry Greenslade agreed, arguing that local authority guidelines were unequivocal.

‘The words “Authorities cannot justify applying surcharges in relation to credit cards” could not be clearer,’ he said. ‘Authorities cannot justify applying surcharges for their use.’

Camden said it stopped the credit card fee being charged on PCN payments last Tuesday, and has sought legal advice.

‘Camden sought independent legal advice when introducing credit card charges for paying penalty charge notices this year – which deemed the charge was legal – and we remain satisfied that this is sound advice,’ a spokesperson said.

‘The council respects the judgment made by the PATAS adjudicator last week. The detail of the decision will be reviewed by our lawyers, and the council will take a decision on further steps, once we have received their advice.’

A spokesperson for London Councils said the ruling ‘does not mean money will come flooding back’.

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