CRA 2015 / UTCCR 1999 — Charge Must Be Genuine Pre-Estimate of Loss, Not Penalty
Under the Consumer Rights Act 2015 (and its predecessor the Unfair Terms in Consumer Contracts Regulations 1999), a term requiring a consumer to pay a disproportionate sum on breach of contract is unfair and unenforceable. A private parking charge must represent a genuine pre-estimate of the operator's actual loss, not an extravagant deterrent penalty. Where operators cannot demonstrate any genuine loss (e.g. free car park, empty car park), the charge cannot be justified as compensatory and is a penalty.
Legal basis
Consumer Rights Act 2015 ss.62-64; Unfair Terms in Consumer Contracts Regulations 1999 reg.5; ParkingEye Ltd v Beavis [2015] UKSC 67 (permits deterrence in some commercial contexts but requires legitimate interest)
How to identify this in your case
A private parking charge for a free car park, or where the operator suffers no genuine financial loss from the overstay. Compare the charge amount to any plausible loss: if a car park is free, there is no loss of revenue. The operator must be able to show a legitimate interest beyond mere deterrence.
Sample appeal wording
I am writing to dispute parking charge [reference] for £[amount] on consumer law grounds. Under the Consumer Rights Act 2015 s.62, a term in a consumer contract is unfair where it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer. Under the rule against penalties (as confirmed in Cavendish Square v Makdessi / ParkingEye v Beavis [2015] UKSC 67), a sum payable on breach must either be a genuine pre-estimate of loss or be justified by a legitimate interest proportionate to the sum charged. In this case: - The car park is [free / the operator has no commercial interest in the land / there is no revenue lost by my parking] - The charge of £[amount] bears no relationship to any actual or foreseeable loss - There is no legitimate interest sufficient to justify this sum as a deterrent Accordingly, this charge is an unenforceable penalty and an unfair contract term. I decline to pay it.
Replace [PARKING DATE], [NtK DATE] etc. with your own dates before sending.
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Scan my ticketSources
- Consumer Rights Act 2015
- ParkingEye Ltd v Beavis [2015] UKSC 67
- Cavendish Square Holding BV v Makdessi [2015] UKSC 67