The London Borough of Camden has temporarily suspended the 1.3% fee it has been charging since the start of the year on penalty charge notices (PCNs) paid via credit cards.
At the time, the FTA branded the 1.3% charge as "cheeky and underhand", while the Brewery Logistics Group (BLG) felt it was illegal and advised its members to appeal all PCNs issued by Camden on this ground.
Bus operator London General Transport Services has now successfully won a challenge against Camden at a Parking and Traffic Appeals Service (PATAS) hearing following an initial rejection of its appeal by Camden.
London General appealed to PATAS on the grounds that the 1.3% charge amounted to more than was printed on the actual PCN.
Giving his verdict at the hearing on 1 June, parking adjudicator Henry Greenslade ruled that the local authority had no power to charge more than the amount printed on the PCN.
Meanwhile, two appeals in May from BLG members to PATAS on the same subject remain outstanding as PATAS has asked for 28 days to look at the matter in more detail.
Following the London General ruling, Camden Council has issued a statement saying that "in the interim, Camden has stopped the credit card fee being charged on PCN payments".
The statement adds: "The detail of the decision will be reviewed by our lawyers, and the council will take a decision on the further steps once we have received their advice."
Natalie Chapman, FTA regional policy manager, London, South East & East of England, says: "By needlessly piling on the costs of PCNs, Camden Council is acting contrary to the spirit of the law and we would like this temporary reprieve from credit card fees on PCN payments to become a permanent one.
"Whether credit card fees are legal or not has little bearing on their justification. After all, the DfT itself has recommended 
to local authorities that due to the operational savings of using a credit card as payment, there is no need for a surcharge on credit card charges."