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Why do we charge an admin fee on PCNs?
Why do we charge an admin fee on PCNs?

Understanding Hiyacar's £40 Admin Fee for Penalty Charge Notices (PCNs)

Eléonore Kuentz avatar
Written by Eléonore Kuentz
Updated over a week ago

At Hiyacar, we aim to provide a smooth and hassle-free car-sharing experience for all our members. However, there are administrative costs associated with handling Penalty Charge Notices (PCNs) when a driver incurs one during their booking. To shed light on why we charge a £40 admin fee in such situations, we want to explain the factors that contribute to this fee.

1. Covering Administrative Fees Charged by Leasing Companies

As a car-sharing platform, Hiyacar does not own any cars; instead, we lease car club vehicles from companies like Flexxilease and Alliance Asset Management. When a driver receives a PCN, these leasing companies may charge us an administrative fee of £40 for processing the incident. To ensure the sustainability of our services, we pass on these costs to the responsible driver.

2. Labor and Processing Costs:

Handling PCNs requires significant manual effort from our team. Our staff must meticulously review each case, communicate with relevant authorities, and ensure all necessary documentation is in order. As a peer-to-peer car sharing platform, we must also handle the subsequent claims between car owners & drivers. The time and resources invested in this process justify the admin fee.

3. Utilising Representation Software:

To effectively represent and contest PCNs when necessary, we utilise a specialised software called Fleetworks. This tool streamlines the process and enables us to handle a considerable number of cases efficiently. The admin fee includes the expenses related to using this representation software.

Understanding the Rationale for the Fee:

We acknowledge that the £40 admin fee may seem substantial, but it is essential to emphasise that Hiyacar should not bear these costs. The responsibility for avoiding PCNs lies with the drivers, and a significant majority of these incidents are entirely avoidable. Let's examine some statistics based on our observations:

1. Prohibition of Certain Types of Vehicles (22.5%):

A notable portion of PCNs arises from drivers disregarding restrictions, such as entering bus lanes or driving through tunnels with prohibited vehicle types such as vans. Adhering to local regulations can prevent these penalties.

2. Parking in Zones with No Permit (15.7%):

Drivers must carefully read and follow parking instructions provided during the booking process. Hiyacar makes it explicitly clear where parking is allowed and where permits are required. Drivers must confirm that they have followed the parking instructions before they can lock the car at the end of their booking. Ignoring these instructions and parking without a required permit leads to PCNs in this category.

3. Parking Overstay (14.4%):

Parking in private lots, such as those at supermarkets, requires compliance with their terms and conditions. PCNs arise when drivers exceed their allotted time without proper payment.

Plonkers with cars on tic' or time to shop elsewhere? Your view on Tesco  parking row - Teesside Live

4. Speeding (12.3%):

Speeding violations are entirely the responsibility of drivers. Engaging in this behaviour not only breaks the law but also puts others at risk of accidents.

5. Other violations

Other notable violations include driving in a pedestrian zone (3.5%), blocking box junctions (3.2%) and not paying for private parking (3.1%).

Encouraging Responsible Driving and Parking:

At Hiyacar, we prioritise safety and responsible usage of our platform. We encourage all users to familiarise themselves with local traffic laws and parking regulations. By practising responsible driving and parking, you can avoid unnecessary PCNs and ensure a safer car-sharing experience for everyone.

We hope this article has provided a comprehensive explanation of why Hiyacar charges a £40 admin fee for PCNs. While we understand that some penalties may be contested, it is essential to emphasise that most PCNs are avoidable through careful and responsible driving and parking practices. By working together, we can maintain a positive car-sharing experience and reduce unnecessary expenses for all parties involved. Drive safely, park responsibly, and enjoy the convenience of Hiyacar!

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