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Help! I’m stuck in London’s congestion pricing trap

January 28, 2008

Planning to rent a car during your next visit to the U.K.? Beware of big-time congestion charges.

If you’re driving into London between 7 a.m. and 6 p.m., your vehicle will be docked £8 for the privilege of using the road. But Graham Morris ended up paying much more when his Alamo rental car passed through the congestion zone recently. Even after he asked his car rental company how to pay the fee.

Morris knew he’d passed through the zone, which uses cameras to recognize a vehicle’s license plates. So he says he tried to settle up with the city of London. That’s when the trouble started.

When I returned the car to Heathrow Airport, I requested information in respect to how to take care of any fee involved with this action, but was not given any direction. I assumed that any fee would be automatically charged to my credit card.

He was right about that, but wrong about the amount. His card was charged a whopping $166, which represented the charge plus a penalty for failure to pay the fee. Morris disputed his credit card bill, arguing that he had never been given the opportunity to pay the fee.

Alamo responded to his complaint with the following letter:

Please find the enclosed copy of our Terms & Conditions, which states that the customer is liable for any Congestion Charges incurred during the rental period.

Unfortunately, our branch staff are limited in the information that they are able to provide to our customers in respect of the congestion charges, although information and leaflets are available with the information as to why this charge is imposed as well as on the different ways of making payment once driven through the congestion zone. Alamo/National consider that their customers make themselves aware of the countries’ traffic rules and regulations.

We are unable to issue you with a credit in this instance for the congestion charge incurred as the charge made is a valid government imposed charge and trust that you understand our position in this matter.

I am sorry that customer services are unable to be of further assistance in this matter.

In fact, London’s congestion charge is no different from a bridge or highway toll. There are several ways of paying the fee. Drivers can charge through its Web site, by SMS text message, in shops equipped with a PayPoint, or by phone. It’s unlikely Morris would prevail in a credit card dispute.

My advice? Take the train. It’s a lot easier than having to run around town, looking for a place to pay your congestion charges.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

14 comments

  • Ann Barbi

    Bob,
    You probally already know this, but thought it may be of interest knowing you’ll be renting a car in London.
    Regards,
    Ann

  • Ann Barbi

    thought this may be of interest to you~

  • JCH

    “In fact, London’s congestion charge is no different from a bridge or highway toll.”

    You’re absolutely correct, and your advice to use public transport is good.

    Unfortunately, the US ambassador in London sees the issue differently, calling the congestion charge a “tax” and claiming diplomatic immunity for all embassy staff. The US owes millions of pounds in unpaid fines.

    Can you imagine how arrogant this appears, and what damage it does to the image of the US? Can you imagine the US public reaction if a foreign ambassador refused to pay his toll on the New Jersey Turnpike or Sunshine Skyway?

  • DRS

    I have lived in NJ and NY and can reliably inform JCH that foreign ambassadors, embassy staff, united nations delegates and staff refuse to pay and owe the city of NY literally millions in fees and fines – yet they cite ‘diplomatic immunity’ and double park into the middle of streets, on sidewalks, block fire hydrants, etc.

  • http://www.homebase-hols.com Lois

    I’m sorry that Graham got caught out by the congestion charge but, as you said, there are a number of ways to pay the fee. The congestion charge was imposed for a very good reason – to discourage people from driving into central London during peak time and causing more pollution, but to use the plentiful public transport instead (which the congestion charge rightfully helps pay for).

    I agree with JCH about the notion that diplomats from any country should some how feel they are exempt from paying the congestion charge in London.

  • Monroe

    Another option if you have to have a car for some of your time in London is to either hire an electric vehicle that pays NO congestion charge, sometimes gets free parking and occasionally even gets free charging. Hey, they’re not gonna go 100mph nor go more then 60 or so miles but how much do you need driving around a city like London? The other choice is to join a car club. No, not where you stand around drinking a beer admiring all the Camaros or what not but where you hire a car by the hour for a reasonable fee, don’t pay for fuel or insurance, congestion fee is taken care of and when you’re done with the car, you return it to either where you picked it up or another designated parking spot. Pretty reasonable choices there for anybody. Oh, electric motorcycles have the same no pay deal if you want to hire one of them.

  • Joe F.

    Of course, the congestion charge has done nothing to alleviate congestion – its just another tax. The problem with do good ideas like this is that they NEVER do anything other than raise the cost of doing business – therefore – they are a tax. Having just returned from London on business, and taking the Heathrow Express into the City, I’ll tell you, traffic is no better. However, the City of London collects alot more money. Thats about it.

    And you can NOT tell me that ‘its paying for mass transit’ since it isn’t -it goes right into the London central account just like every other tax and fee assessed in the city. You can TELL yourself that, but its not true. Its like the bazillions of Americans who think there is a social security ‘account’ just waiting for them to draw upon. People are pretty amazing at how they can justify almost anything to themselves when its presents as ‘doing some good.’

    The American Ambassador is correct, it is tax. Diplomats do not pay taxes.

    I’ve got a much much better idea for diplomats. America will pay these fees, taxes and charges, if you do. If Britain, Botswana or Bahrain obey American laws, we’ll obey theirs. The ENTIRE solution to trade policy, trade disputes and tariffs is America adopting the policy of the nation we are trading with. If China does not respect patent, trademark and copyright, neither do we of their goods. If France has a 40% tariff on American wine, we have the same tariff on French wine. If Japan has a 90% tariff on American rice or cars, or requires extra inspections, we do as well.

    If all America does is mirror the rules of the world around us, how can anyone dislike us? And, we make a point at the same time.

  • Portia Eliot

    Hi – I don’t often comment on blogs, but this is a really spurious complaint. If you spend more than 1 hour (being generous here) in Central London you will see at least one convenience store or newsagent offering the possibility of paying the congestion charge. You can also pay by phone, pay online, or even at a kiosk in some car parks (new one for me). The penalty for paying the day after use is 2GBP, and thereafter 100GBP, so you have at least 24 hours to pay the charge before the stiff penalties. And someone savvy enough to complain to Chris can type “congestion charge” in google.com, at a computer at their hotel or the nearest internet cafe, and find all the details. So in this case I think it is a case of personal irresponsibility.

  • JCH

    There is a clear distinction between a tax and a toll.

    I can’t avoid it if my tax dollars or pounds are used to build a toll road.

    I can avoid a toll by declining to use the facility in question. The London congestion charge is a toll.

    Many people who disagree with Mayor Ken Livingstone on other matters think he got it exactly right when he likened the current US ambassador to a “chiselling little crook”.

    P.S. I am aware that some foreign diplomatic staff in Washington and New York have long abused their diplomatic status to ignore traffic and parking laws. Should the US really be seen to be on their level as a matter of official policy?

  • Joe F.

    I dunno JCH, but as soon as Britain’s diplomatic staff start paying their parking tickets and moving violation fines, then maybe America will change its mind on the congestion charge. I guess that just puts us on Britain’s level, huh?

    My goodness, the Embassy is right in the City, they pay the congestion charge leaving the driveway. One would think that with all the costs and fees and surcharges and taxes associated with living in London, if you lived in the Congestion zone you’d get a break.

    As for Portia, she’s right – if you rent a car in London you need to understand how the charge works and make sure you pay it, even if you are only ‘passing through.’ A toll is generally a fee charged to use a specific road or bridge, not enter a huge sprawling city. The government uses its police and taxing power to collect the fee if you do not pay it – its a tax to enter the city. A toll is simply a nice way to call something a tax . . .

  • Seth

    Any fee charged by a government is a tax. A cigarette tax is still a tax even though they didn’t force you to buy the pack.

    Brit diplomats refuse to pay any parking ticket or fee here in the US and routinely double park, park in red zones etc… They have no respect for us and let’s be honest, we have no respect for you or your new mayor and your “surveillance culture.”

    On the subject of this, why not have a little hospitality for foreigners that come to your country and pay your VAT tax to fund your socialism? We treat Brits like visiting royalty, you guys treat us like scumbags for visitng your rain soaked little empire. Asking a guy that’s shown up for a day on business to figure out your mass transit system (knowing we don’t really have that in the US) is a total joke. In the US the car rental company would’ve charged him the toll, he was simply confused. It’s not unreasonable to think that they could hand him a piece of paper with the URL and/or paid it and charged through the credit card.

  • Jim J

    I don’t understand why anyone would want to bring a car into Central London. The streets are narrow. Traffic is always very heavy. Parking is difficult, if not impossible, to find. Also, most Americans have difficulty getting used to driving on the “wrong” side of the road.
    When I plan a London trip, I purchase a subway/bus pass online before I leave. The cost for a pass is higher than it would be for a similar pass in most US cities, but the price is still reasonable compared to the cost of renting a car, paying for parking, and paying congestion fees. The Piccadilly Line of the London Underground serves Heathrow Airport and I use my pass to get from the airport to the city. The ride from Heathrow to the center of London takes about 40 minutes. The trains are clean and comfortable. Of course, you can expect fully loaded trains during rush hours.
    The bus and subway network can take you almost everywhere you will want to go in the greater London area. For me, renting a car in London is not an option.

  • Chris J

    Unfortunately for Joe F. and Seth, above, British diplomats do pay their parking tickets, at least in New York City: see http://www.usc.edu/schools/business/FBE/seminars/papers/AE_4-28-06_FISMAN-parking.pdf at page 22.

  • Eric Hensel

    Portia, maybe you are right in many cases, but the problem isn’t that simple.  As foreigners we are unaware of this congestion fee.  Moreover, we have no idea how to pay it and the rental agency doesn’t clearly mention this.  To us, it is a foreign idea and we wouldn’t even consider such a charge.  

    The issue isn’t the 8 GBP per day, the issue is the outrageous fine of 100 GBP by the time I am made aware of the fee.  Even until now, months after my first fine, I still don’t even know how to pay it because it is a bill from a second rental car company without contact details on the bill.  So I am now another American who is leaving either a rental car company or London city without their payment…albeit unwillingly.  If I could just pay it off at a petrol station or the likes, I would be happier and sleep better at night, but I can’t even access the fine on the central system anymore.

    This and all other latent fines for all systems should be required to collect payment details in advance and charge us our fair share for the use….not some outlandish fee that incrementally grows without us even knowing it.  That is just greedy.

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