Driver fury as parking ticket debt corporations file ‘ disproportionately excessive’ 63% earnings

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Your help makes all of the distinction. Learn extra Firms that cost drivers charges for recovering parking ticket money owed are working with a mean revenue margin of greater than 60 per cent, a Authorities doc has disclosed.

The Ministry of Housing, Communities and Native Authorities (MHCLG) said that this determine signifies a "market failure", whereas the AA branded the margins "disproportionately excessive".

Debt restoration companies are employed by parking operators to pursue cost for unpaid tickets, typically including as much as £70 in further charges per ticket for drivers.

These costs have been set to be banned when the then-Conservative authorities launched a code of observe in February 2022, however this was withdrawn 4 months later after a authorized problem by parking firms.

<img src="https://static.independent.co.uk/2025/05/22/8/05/01J5MW1DSV3FM5XRZQMG9PF9XZ.jpeg" srcset="https://static.independent.co.uk/2025/05/22/8/05/01J5MW1DSV3FM5XRZQMG9PF9XZ.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/05/22/8/05/01J5MW1DSV3FM5XRZQMG9PF9XZ.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Ministry of Housing, Communities and Local Government (MHCLG) said the profit figures showed a market failure" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The Ministry of Housing, Communities and Native Authorities (MHCLG) stated the revenue figures confirmed a market failure (PA) A brand new session doc setting out the present Labour Authorities’s proposed code said the £70 cap is “prone to be greater than could be fairly justified” however it's “in search of additional proof”.

It added that restoration companies have “a mean revenue margin of roughly 63 per cent”.

That is “similar to extremely modern firms” regardless of the companies concerned offering “customary companies resembling cost plan provision”, based on the doc.

It continued: “We due to this fact don't take into account them to be offering considerably modern companies, and as such the excessive earnings could also be indicative of those corporations having an excessive amount of management over the market, thereby indicating that there's a market failure.”

Parking operators can take drivers to courtroom in the event that they proceed to withstand paying for tickets.

The MHCLG stated debt restoration companies would break even with charges of roughly £26 per ticket, if the proportion of these paying was secure.

Jack Cousens, head of roads coverage on the AA, stated: “The 63 per cent revenue margin feels disproportionately excessive for the companies offered.

“This solely highlights the necessity to curb the sector and guarantee stability for all.

“There stays an overzealous cohort amongst some non-public parking operators the place they hand over circumstances to debt restoration corporations for seemingly innocuous costs.”

He added that the ban on debt restoration charges within the unique session was “the appropriate place” and claimed the newest model “falls in need of the mark”.

Steve Gooding, director of motoring analysis charity the RAC Basis, stated: “The revenue margins revealed by the Authorities assist clarify why there are actually greater than 180 non-public parking corporations shopping for car keeper information from the DVLA to allow them to ship calls for to drivers – it’s an enormous and worthwhile enterprise.

“The non-public parking trade’s failure over time to be extra open about its actions is a part of the issue and its ongoing reluctance to open its books to official scrutiny reveals why ministers should observe by way of with plans to convey transparency and independence to this sector.”

Latest evaluation by the PA information company and the RAC Basis discovered 4.3 million tickets have been issued by non-public firms to UK drivers between April and June.

That was a 24 per cent improve in contrast with the identical interval final 12 months.

A BPA spokesman stated it “strongly disputes the Authorities’s revenue calculations” and known as on it to “publish the methodology behind these figures”.

He continued: “The numbers introduced are deceptive and fail to replicate the fact of the debt decision sector.”

He insisted the aim of debt restoration charges is “to not generate revenue however to behave as a good and efficient deterrent towards deliberate non-payment”.

An MHCLG spokesperson stated: “This Authorities inherited a non-public parking market that lacks transparency and safety for motorists.

“We share their frustration, which is why our non-public parking code of observe will drive up requirements within the trade and maintain parking operators to account.

“We consulted on the present cap on debt restoration charges and can publish our response as quickly as potential.”

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Driver fury as parking ticket debt corporations file ‘ disproportionately excessive’ 63% earnings

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