AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM ordered to refund learner drivers for hidden fees

The operator of AA and BSM driving schools is required to issue refunds to thousands of students following a probe by the Competition and Markets Authority (CMA). The watchdog found that the total cost of lessons was not clearly communicated during the online booking process, leading to confusion among customers.

Automobile Association Developments has been fined £4.2 million for violating consumer laws. Over 80,000 users of the AA and BSM Driving Schools will collectively receive £760,000 in compensation, averaging approximately £9 per individual. A representative from AA Driving Schools expressed disappointment with the investigation’s results but noted full cooperation throughout the process.

“Although the £3 booking fee was visible before purchase, we admit it should have been highlighted earlier in the booking flow,” the spokesperson stated. “We updated our website immediately to make the fee more noticeable and are now processing refunds for affected customers.”

The CMA’s inquiry revealed that between April and December last year, prospective learners were initially presented with prices excluding a mandatory booking fee. This fee was only revealed at the final checkout stage, after users had completed selecting lessons, setting times, and providing personal information.

CMA chief executive Sarah Cardell emphasized that mandatory fees must be clearly stated from the beginning of the booking process. “Dripped fees can mislead consumers, especially when they’re mindful of every expense,” she explained. “This practice undermines trust and fairness in pricing.”

The investigation targeted eight businesses, including AA and BSM Driving Schools, uncovering instances of deceptive pricing tactics. The ruling highlights the importance of transparency in consumer transactions, particularly in the driving education sector.