AA and BSM ordered to refund learner drivers for hidden fees

AA and BSM Ordered to Refund Learner Drivers for Hidden Fees

Following an investigation by the competition watchdog, the AA and BSM driving schools’ owner has been required to issue refunds to thousands of learners who were not informed of the total cost for lessons upfront during online bookings. The Automobile Association Developments was also fined £4.2 million for violating consumer law, according to the Competition and Markets Authority (CMA).

Over 80,000 customers from AA Driving School and BSM will collectively receive £760,000 in refunds, with an average payout of approximately £9 per individual. A representative from AA driving schools expressed disappointment with the investigation’s findings but stated that the company fully collaborated with the regulator throughout the process.

“Although the £3 booking fee was clearly communicated to customers before their purchase, we recognize it should have been highlighted at the beginning of the online booking process,” the AA spokesperson noted. “We promptly updated our website to ensure the fee was more visible and are now refunding all affected customers.”

The CMA discovered that between April and December last year, customers booking lessons online were initially presented with prices excluding a mandatory booking fee. This fee was only revealed at the checkout stage, after users had selected lessons, chosen times, and provided personal information. This practice, termed “drip-pricing,” is considered illegal and can deceive consumers into accepting a lower initial price, only to face additional charges later.

CMA chief executive Sarah Cardell emphasized that any mandatory fee must be displayed from the outset, not added at the final stage. “When people are mindful of their spending, unexpected fees can influence their decisions significantly,” she added. The watchdog’s investigation included eight businesses, among them AA Driving School and BSM Driving School.