Government Turns Its Attention To Ancillary Charges

Charges for administration, fuel and excess mileage could be regulated by government, according to a discussion document published last week by the Department for Business, Innovation and Skills (BIS).

The government believes that an economic case may exist for it to regulate charges which, from the consumer's perspective, do not form part of the 'essential bargain' between trader and consumer. BIS believes that these charges are not subject to normal competitive pressures because they are not actively considered by consumers when entering into a contract.

The government's interest in ancillary costs follows the Supreme Court decision in November 2009 that charges for an unauthorised overdraft are a legitimate part of the cost of banking services.

The deadline for responses to the BIS discussion document is 23 August. For a copy contact BVRLA legal services executive Amanda Brandon.

To visit the BVRLA website click here...

source: BVRLA