If you run a hire company you will often receive Penalty Charge Notices issued by CCTV or Notices to Owner issued in respect of vehicles you have hired.

Some Hire Companies pay these and then recharge the hirer often with a service charge.  I am not sure however that this is necessarily the safest way to ensure that you do not incur additional liabilities.  One issue is that if you have to requisition a payment from your accounts department there may be a delay in getting the payment made within the statutory period and the charge may go up by 50% which in the circumstances cannot be added to your hire's charge. 

Additionally many hirers complain that by making the payment you are depriving them of the opportunity to appeal.

My view is that the safest way to avoid any problems of liability is to "transfer the liability" for the Notice to Owner or Penalty Charge Notice to the hirer.  In this way not only do you avoid any problems but the hirer will be pleased that they have an opportunity to appeal.

So how do you go about "transferring liability"

There are two instances where you as the hire company will get a form of Penalty Charge Notice:

1.   Where a Penalty Charge Notice is issued via CCTV and is therefore sent to you by post in your capacity as the registered owner and

2.   Where you receive a Notice to Owner following a Penalty Charge Notice being put on the vehicle and the hirer either not paying it or having appealed, having that appeal turned

In both of these cases you should transfer liability to the hirer as follows:

You should appeal the CCTV issued Penalty Charge Notice or the Notice to Owner by appealing as follows:

1.   By ticking on the appeal section the appeal heading on the CCTV issued Penalty Charge Notice or Notice to Owner  which will read something like "The recipient of the Notice to Owner is a vehicle hire firm and the person hiring it has signed a statement of liability in respect of Penalty Charge Notices; 

2.   Signing and dating the Appeal part on the Notice to Owner and returning it the council together with

3.   a copy of the contract covering the date in question with the hirer's details.

Alternatively you can send a letter to the council in the following format.

For a CCTV issued Penalty Charge Notice

"To xxxxx Council

APPEAL AGAINST PENALTY CHARGE NOTICE

PCN number xxxxxxxx Vehicle xxxxx

PCN dated xxxx date of alleged contravention xxxxxx  

We hereby appeal against the above CCTV issued Penalty Charge Notice/Notice to Owner* on the grounds that we are a vehicle hire firm and the person hiring it has signed a statement of liability in respect of Penalty Charge Notices.  We enclose a copy of the agreement covering the day of the alleged contravention.

Please acknowledge receipt of this appeal and confirm that liability has been transferred to the hirer.

Yours faithfully

Xxxxxxx

©2009 Barrie Segal"

For a Notice to Owner

"To xxxxx Council

APPEAL AGAINST NOTICE TO OWNER

PCN number xxxxxxxx Vehicle xxxxx

NTO dated xxxx date of alleged contravention xxxxxx  

We hereby appeal against the above CCTV issued Penalty Charge Notice/Notice to Owner* on the grounds that we are a vehicle hire firm and the person hiring it has signed a statement of liability in respect of Penalty Charge Notices.  We enclose a copy of the agreement covering the day of the alleged contravention.

Please acknowledge receipt of this appeal and confirm that liability has been transferred to the hirer.

Yours faithfully

Xxxxxxx

© 2009 - 2012 Barrie Segal"

You could even draw up a template where you have to do is fill in the blanks

I am happy for you to use the above templates but would ask that you show the copyright information at the bottom of the letter as shown above.

© 2009 - 2012 Barrie Segal - The contents of this page are copyright and all rights are reserved.  Nothing from this page may be reproduce on any website, blog or any other medium whether physical or digital.