Is this the end of the road for Pay & Display car parks?

[Bartok]

Requested post by Happy Contrails. From conversation with a passenger, a German lawyer on FRA - DXB at the weekend.

 

The lawyer on the flight casually talked about a case in Germany where a motorist was penalised for over staying a pre-paid Pay & Display ticket. He successfully overturned the penalty because the car park operator charged disproportionately high sum in compensation. The motorist argued the contract formed between the motorist and car park was unfair. The car park admitted accepting overpayments from consumers without compensating them for unused time.

 

His complaint was upheld. The court ruled where compensation is disproportionately high and no equal compensation is given in return, the clause in the contract awarding penalty for the land owner can be disregarded.

 

This (possibly by accident) meant penalties for underpayment can lawfully be disregarded, and allows consumers to freely use car parks operating a pay & display without paying anything.

 

Car parks operators are now having to revert to pay-on-exit. This only charges on actual land usage, and does not require motorists to overpay for parking they may not need to protect themselves from the risk of penalty for underpayment.

 

 

 

Could this happen in the UK?

 

In the UK, pay & display parking arrangements on public land and highways are common place but these fall under the jurisdiction of local councils and regulated by the Traffic Management Act 2004. But, this legislation does not apply to private companies and trading in paid parking on private land or parking structures for commercial gain - e.g. NCP.

 

When a consumer parks a vehicle on land or in a structure operating pay & display, a contract between the parties is formed at common law. If a private car park has a policy where it accepts overpayment from a consumer, but enforces a higher charge for under payment at a rate that is higher than the rate otherwise charged when the consumer does not over-stay his advance-paid time. Does this fall under the remit of the UK's legal definition of an unfair contract clause?

 

The legislation referred to is Schedule 2(e) of Regulation 5(5) of the Unfair Terms in Consumer Contracts Regulations 1999.

 

Comments?

[lamma]

"(e) requiring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation;" applies to just about every PPC case. would have to held in a court of record. I agree with the argument.

[Bartok]

Further info.

 

If this holds in UK law, it would enable consumers to reclaim parking fines from private pay & display car parks to reclaim their money within six years of paying it.

 

Section 2 of the Limitation Act 1980.

 

Anyone agree?

[lamma]

I do.