Why we charge an administration fee for PCN’s

PCN Administration Charges

PCN’s Administration Charges

We’re proud of being upfront and honest here at Cocoon Vehicles Ltd and whilst you’re in a short-term car lease with ourselves, there are a few charges that may apply during your time with us.

Today, we’d like to discuss parking tickets, speeding tickets, and the process and costs behind representing these into the hirer’s name.

Ticket gets issued

Depending on the authority, council or parking firm, a PCN ticket is sent to our funders or suppliers first. This can take a while but when they receive it, they represent this into Cocoon’s name.

On top of this, the supplier/funder also charge us an administration charge for processing the ticket and representing it.

Cocoon receives ticket

The parking firm, authority, council, etc will then represent the ticket and it is sent to ourselves via the post.

When we receive the ticket, we carry out the following procedure:

  1. Raise an invoice for an administration charge, details of our charges can be found on our account management screens. The invoice will be sent via email to the account contact we have on our CRM system.
  2. Arrange for the administration fee to be debited via Direct Debit within 5 working days. Notification of the Direct Debit will appear on both the invoice and an email from our Direct Debit suppliers; GoCardless.
  3. Complete the information required on the ticket to represent it into the hirers name.
  4. We then create a letter to go with the ticket detailing the hirer and the on/off hire dates.
  5. We also print a copy of the rental agreement showing the signed liability statement, this is usually between 10 and 20 pages depending on the type of short-term agreement you’re in.
  6. This is all enveloped up and added to the posting pile.
  7. In the meantime, the ticket is scanned into the system and saved against the customer record in the CRM.
  8. The parking ticket is then usually taken to the local post office and sent first class signed for.

The whole process of each ticket takes approx. 30-45 minutes depending on the type of PCN that has been received, this does not include the time or the parking costs for the Post Office. Whilst many of the firms allow online representation, due to the size of the contracts, this is not always possible.

You receive ticket

The ticket is sent to the address as shown on the hirer’s agreement, this is your chance to pay, appeal or complete any details that are required.

Some tickets require payment

Certain fines and tickets may require us to settle the ticket and charge the amount to you, if this is the case we will let you know and it will be detailed on the invoice.

Tickets like this include bus lane contraventions and congestion charges. Certain foreign speeding tickets and infringements may also require immediate payment.

What if the PCN has been issued incorrectly?

If the PCN or fine has been issued incorrectly, as the hirer, it is your responsibility to appeal this ticket. Details of which can be found on the paperwork when you’ve received it.

The administration charge does still stand and does form part of our terms and conditions, we have still had to put the hard work into the processing of this ticket and pay our funders/suppliers and administration charge.

You may be able to claim this admin fee back from the firm or authority that has issued the ticket, many of our customers have been successful in doing this, especially when they threaten legal action.

Do all companies charge an administration charge?

In the leasing and hiring world, it is commonplace to charge an administration charge for the processing of parking tickets, it’s not a quick process and we ourselves receive hundreds of PCN’s a month.

We’d prefer it if you didn’t get any tickets at all, but we know sometimes this can’t be helped and even the staff here at Cocoon Vehicles have been guilty of receiving a few tickets over the years.

Cocoon had to demonstrate our process to a judge

In 2015, one of our Directors had to demonstrate to a judge in a County Court the procedure of representing a parking ticket and why we charge an administration charge.

The defendant claimed that Cocoon’s charge was unfair and the amount was clearly charged to gain profit via other means.

The judge ruled in favour of Cocoon Vehicle’s administration charge and it was actually demonstrated that the business as a whole would lose money overall.

The time taken to process the ticket, the postage and the administration charge paid to Cocoon’s suppliers were all taken into account and the judge said that the charges levied were all fair.

Why do you settle some tickets and not others?

Depending on the type of ticket that has been issued, we might be obliged to settle the fine. In the case of London Congestion Charges, it is down to the registered keeper to settle the fines. In this case we charge an administration fee and settle the fine on your behalf.

If we process a parking ticket and it is rejected for some reason, we will also settle the ticket to prevent any further charges, this will then be taken by your preferred payment method of Direct Debit or Backup Card.

With the majority of the tickets, we will represent into the end-users name and this will be clearly marked on our invoice to yourself.

More information

If you would like any more information on our process or charges, please do not hesitate in contacting the team on 01332 290173 or complete the Online Form below.

Rebecca joined the Cocoon Vehicles team in 2018 after running and selling a successful financial services business offering pension, investments and mortgages. Today, Rebeccas goal is to provide the best possible customer service along with news that you will want to read.

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