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• The British Vehicle Rental and Leasing Association (BVRLA) has

27th February 2003
Page 13
Page 13, 27th February 2003 — • The British Vehicle Rental and Leasing Association (BVRLA) has
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Which of the following most accurately describes the problem?

slammed Transport for London's (Ill) decision not to allow leasing companies to transfer liability for congestion charging fines to their customers.

John Lewis, BVRLA director general, says that Tfl and the Department of Transport had agreed over the past two years that, in line with all similar legislation, leasing companies would have the right to transfer liability for fines to their customers. However, he says leasing companies will now be forced to pay the fine before recouping the charge from their customers.

"We want to re-establish the situation and have congestion charging fines once more mcognised in the same way as parking fines. The mix-up by TfL does not, however, give drivers carte blanche to ignore congestion charges.

"Most leasing companies have written into their contracts a clause that allows them not only to pass on all fixed-penalty notices but to make administrative charges as well. Customers could find themselves facing huge bills if their drivers don't pay the congestion charge. If Tfl, had simply allowed leasing companies to transfer liability, these increased costs on customers would not be necessary."

Michael Nunn, contract hire director for Lex Transfleet, is also disappointed at the ruling: "It will add considerable administration costs, which will have to be passed onto the customers. It will also make it more difficult for a customer to contest the penalty if it has already been paid."

Rental vehicles are not generally affected by this ruling as the agreements under which they are hired are usually for less than six months and are therefore outside the scope of Tfl:s ruling.


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