Hire Car Liability
Summary
Hire car parking liability is handled differently from standard keeper liability under POFA 2012. Schedule 4 paragraphs 13–15 set out a special regime for credit hire agreements and hire companies. A hire company that is the registered keeper can avoid keeper liability if it fulfils specific obligations: it must keep records of hirers, provide the hirer's details within a set period, and the hire agreement must contain prescribed information. If the hire company complies, liability passes to the hirer. If it does not comply, the hire company itself is liable as keeper. Hirers who are directed to pay by the hire company should check whether the hire agreement's conditions were met.
The special POFA regime for hire companies
POFA 2012 Schedule 4 paras 13–15 recognise that hire companies are not in the same position as ordinary registered keepers — they do not drive the vehicles themselves and have limited ability to prevent drivers from incurring charges. The regime requires: (a) the hire agreement must last for at least 28 days; (b) the hire agreement must contain a statement that the hirer accepts liability for parking charges; (c) the hire company must keep records of all hirers; and (d) if the hire company receives a compliant NtK, it must provide the hirer's details to the operator within 28 days. If all conditions are met, liability transfers to the hirer.
What hirers need to know
If you hired a vehicle and receive a parking charge notice — either directly or because the hire company has passed it on — check: (1) whether your hire agreement contained the prescribed POFA paragraph 13 statement; (2) whether the hire lasted at least 28 days (short-term hire has a different regime); and (3) whether the charge itself was valid in the first place. You have the same appeal rights as any driver — you were the driver at the time, so you can challenge the charge on its merits at Stage 1 (operator) and Stage 2 (POPLA or IAS).
Short-term hire — different rules
POFA paragraphs 13–15 apply to hire agreements of at least 28 days. For short-term hire (daily or weekly rental from companies like Hertz, Enterprise, or Europcar), the 28-day minimum is not met. In these cases, the hire company typically has its own contractual arrangement with the hirer (via the rental agreement) to recover charges passed to them, rather than relying on the POFA hire regime. Check your rental agreement carefully — many short-term hire agreements contain broad clauses authorising the hire company to charge an administration fee on top of the original parking charge.
Challenging a hire car parking charge
- ✓Check the charge itself on its merits — signage, POFA compliance, ANPR accuracy — before paying anything.
- ✓Check your hire agreement: does it contain the POFA para 13 prescribed statement accepting liability for parking charges?
- ✓Check the hire term: was it 28 days or more? If not, the POFA hire regime does not apply.
- ✓If the hire company has added an administration fee, check whether the rental agreement authorises this and whether the fee is proportionate.
- ✓Appeal the underlying charge at Stage 1 (operator) as the driver — your appeal rights are the same as any driver.
Sources
- Protection of Freedoms Act 2012, Schedule 4, paras 13–15 — hire vehicle provisions
- Consumer Rights Act 2015, s.62 — unfair terms
Frequently Asked Questions
- Can I be charged an administration fee by the hire company on top of the parking charge?
- Hire companies routinely charge administration fees for processing parking charges. These are generally enforceable if provided for in the rental agreement and are proportionate. Some hire companies charge £30–£60 in admin fees. If the fee is not contractually provided for or is disproportionately high, it may be challengeable under the Consumer Rights Act 2015 as an unfair term.
- What if I was not driving the hire car at the time of the charge?
- If another authorised driver under your hire agreement was driving, notify the hire company of the actual driver's details. If the hire company passes this information to the operator within the POFA timescale, liability transfers to that driver. Check your hire agreement for the process for notifying additional drivers.
- Does the 28-day hire minimum apply to long-term lease vehicles?
- Long-term lease (PCH/PCP) is different from hire. For finance leases where the lessee is the registered keeper, standard POFA keeper liability applies without the hire regime. For contract hire where the leasing company remains the keeper, the para 13 hire regime may apply if the agreement structure meets the POFA criteria. Check the specific agreement structure.
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