TfL may be forced to pay millions in wrongly issued Ulez fines to drivers - 'We suspected something was not right'

The settlement follows a judicial review launched by Transport in Nood BV (TNBV), a company representing dozens of Dutch haulage firms which claimed that up to €7.5million (£6.25million) in fines could have been wrongly issued to the companies it represents.

The case has put TfL's charging policy under increased scrutiny, with potential far-reaching consequences for its enforcement practices and finances.

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Vehicles registered outside of the UK still need to meet emissions standards when driving in London, according to the TfL website.

This applies to the Ultra Low Emission Zone, Low Emission Zone and must abide by the Congestion Charge and the Direct Vision Standard HGV Safety.

Drivers from abroad must register their cars with TfL if the vehicle is listed as not meeting Ulez standards but can provide evidence that it does meet emissions requirements.

The regulations aim to ensure that all vehicles contributing to London's air quality meet the same standards, whether they are domestic or foreign-registered.

The legal challenge revealed several issues with the fines issued by TfL. TNBV argued that the penalties were unlawfully denominated in euros, contrary to UK legislation requiring fines to be given in pounds.

An excessively high exchange rate was allegedly used, resulting in drivers being charged €3,600 (£3,200) for Lez fines, exceeding the maximum penalty of £3,000.

Additionally, a five per cent administrative fee was added to each fine by TfL's contractor, Euro Parking Collection (EPC).

A TfL spokesperson told The Guardian: “We have agreed to settle a claim, which relates solely to a number of penalty charges issued to haulage companies based in the Netherlands. This agreement is subject to approval by the court.”

TfL has conceded that these fines should have been sent in pounds and no additional charges should have been applied.

TfL still seeks to reimburse only the five per cent fee, while TNBV argues for full refunds. The final decision on refunds will be made at a high court hearing on 5 November.

The settlement comes amid broader concerns over TfL's fine administration for EU residents as five member states have accused TfL of illegally obtaining names and addresses of their citizens to issue over 320,000 penalties.

This practice has been questioned since Brexit, as the UK lost automatic access to personal details of EU residents, with some EU citizens also facing bills of up to £11,000 for London clean air zone violations.

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TfL maintains that "local laws" allow authorities to share vehicle owner information for traffic regulation enforcement, despite the absence of individual data-sharing agreements with EU countries.

Antonio Oliveira, owner of TNBV, commented: "We had long suspected that something was not right... EPC has been adding an illegal surcharge of at least five per cent to every fine they have ever issued."