Friday 24 May 2013

The big bluff !

Many shops with vacant land beside their premises turn it into a car park for their customers.  They naturally want to restrict it to those shopping in their store and limit the time cars will be taking up valuable spaces.  Inevitably, some drivers will abuse the privilege.

" Parking Management " companies have evolved  and we are now finding signs directing us to take a ticket from a machine and display it inside our vehicle.   In some instances this requires a fee for a given length of time, but in many cases parking is free, but with a time limit.   This ticket is stamped with the time of issue.

It is rumoured that these management companies provide their services either free to the land owner or at a very low cost - and base their profits on the fines they levy for non compliance.  It seems that they are particularly aggressive in chasing up unpaid fines with harassing phone calls and demanding letters, threatening draconian court action.

Unlike councils and government bodies, private companies such as these do not have a legal right to impose or collect fines.   It seems that they use a different approach by issuing a " Notice of liquified damages " alleging that the motorist has committed a " breach of contract "  and that they demand " compensation for the loss ".

Many people are bluffed by the look of legality and simply pay the fine, but legally loss compensation can only apply to the actual loss suffered - and the amount demanded is usually in the region of $ 88.   It would be hard to justify that amount in a contested case in a court of law.

Pursuit of unpaid fines seems relentless.   These are issues that rightfully belong to the jurisdiction of " Fair Trading " - and those suffering harassment would be well advised to seek that avenue of relief !

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