BVRLA rejects regulation of contingent charges

The BVRLA has rejected suggestions that contingent and ancillary charges – such as those for administration, fuel and excess mileage – should be assessed for unfairness. In its response to a call for evidence from the Department for Business, Innovation and Skills (BIS), the association called for the government to clarify what the objectives of changing existing legal principles would be and how this would improve consumer protection.

BIS believes that a 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. The department believes these charges are not actively considered by consumers when entering into a contract and are therefore not subject to normal competitive pressures.

The BVRLA contends that charges for administration, fuel and excess mileage do not need to be regulated by the government as these are intended to recoup losses or costs incurred by members and are therefore driven by cost recovery.

The association's full response can be found on the BVRLA website by clicking here...

source: BVRLA

RIVAL's software allows you to add contingent charges to your rental agreement easily and individually, to find out more about our REVOLUTION rental system click here...