Interesting figures from IPC Conference Slide

kryten3000

Picture posted by Will H on his Twitter feed showing the 5 stages of a "Parking Charge Journey".
It's quite hard to read so here are the figures:

Stage 1 - 1-14 days, 40% discount.    56% are resolved at this stage, 43% escalate.  56% of all charges are resolved by the end of this stage.

Stage 2 - 15-28 days, Full amount due.  Of the charges reaching this stage, 20% are resolved, 76% escalated.    65% of all charges are resolved by the end of this stage.

Stage 3 - 29 days - 12 months.  +£70 "escalation fee". Of the charges reaching this stage, 17.5% are resolved, 25% Escalate to litigation, 4.5% are cancelled.  70% of all charges are resolved by the end of this stage.

Stage 4 - Pre litigation.  Of the charges reaching this stage, 11% resolved, 76% escalate.  71% of all charges are resolved by the end of this stage.

Stage 5 - Claim issued.  +£85 fee (£50 Solicitor and £35 Claim).  Of the charges reaching this stage, 27% are resolved, 4% escalate, 65% result in default judgment.  +£22 Judgment fee.  73% of all charges are resolved by the end of this stage.  Less than 7% of motorists reach this stage.

My take-away from this is that Stage 3 has a lot of charges unaccounted for - more than half seem to go no further.  

56% of charges settled within 14 days = 49% of total revenue.

~4% of charges result in a Default Judgment = a minimum 16.6% of total revenue (this assumes no interest added to the claim amount).

~1.7% of claims are paid or settled which is approximately 6.5% of total revenue.

Average return per PCN I calculate to be £67.43, again using minimum figures for claims.

Coupon-mad

This is very interesting.

Compare this LBA stage in private parking, where bulk litigators seem to WANT claims and CCJs:

Stage 4 - Pre litigation.
Of the charges reaching this stage, 11% resolved, 76% escalate.  71% of all charges are resolved by the end of this stage (adding just 1% 'value' compared to not having a parking bulk litigator threaten people)

...to this £1.50 Letter before Action with no added fees, used in other industries:

https://lovetts.co.uk/uk-debt-recovery/letter-before-action/

86% of debts are paid upon receipt of a Lovetts letter, with no further action being required.

Any other number crunchers out there like to comment?

Castle

kryten3000 said:

Picture posted by Will H on his Twitter feed showing the 5 stages of a "Parking Charge Journey".
It's quite hard to read so here are the figures:

Stage 1 - 1-14 days, 40% discount.    56% are resolved at this stage, 43% escalate.  56% of all charges are resolved by the end of this stage.

Stage 2 - 15-28 days, Full amount due.  Of the charges reaching this stage, 20% are resolved, 76% escalated.    65% of all charges are resolved by the end of this stage.

I had also assumed that "resolved" simply meant paid but the Government's Impact Assessment would suggest otherwise because at 6.22 it states

It is important to differentiate between parking charges which are paid (at both the discounted and non-discounted levels) and parking charges which are not paid. It has been assumed that 47.5% of parking charges are paid, since this aligns with evidence from a range of industry data sources.

The Impact Assessment goes on to assume that 12% are cancelled but there's no mention of cancelled Parking charges in the IPC figures, until 4.5% are cancelled at the stage 3 point. This would suggest that either the BPA members are far worse at collecting payment when compared with the IPC or the IPC's "resolved" figures includes cancellations.

kryten3000

There are certainly a lot of missing PCNs as the process goes on, overall around 20% of all charges.

It is no surprise the figures don't add up, but it is clear that there is a lot of money to be made by abusing the court system and obtaining Default Judgments.