Rail regulator urges operators to stop profiting from ticket refund admin fees
Train operators were urged today to stop profiting from excessive admin fees applied to ticket refund practices.
According to railway regulator the Office of Rail and Road (ORR), while the admin fees for ticket refunds amount to £10, the actual cost of processing refunds is around £5. After analysing data between 1 April 2019 and 31 March 2020, the study reported the average admin fee was around £4.64.
“With 92 per cent of refund claims now submitted electronically and almost all refunds paid out by bank transfer or card payment, we’re asking retailers to assess whether their administration fees for ticket refunds are cost-reflective and reasonable,” said ORR’s deputy director for consumers Stephanie Tobyn.
“We are working with Department for Transport and the Rail Delivery Group to ensure these findings are taken into account when considering whether the maximum caps for administration fees, particularly the current £10 cap in respect of ticket refunds, should be lowered.”
The warning is part of a review published today by the ORR over refund administration fees, which were initially set in 2006. The review was welcomed by the ministers, who praised as it would help the government deliver its Plan for Rail.
“I welcome this report from the Office of Rail and Road and I’ll be working closely with the Rail Delivery Group to review the findings,” said rail minister Wendy Morton.
“Through our Plan for Rail we are making the railways work better for the passengers who use them on a day to day basis. This research helps us to deliver that mission.”