Trans-Talk

A Toronto car salesman, who claimed faulty transponders led toll highway operator 407 ETR (Express Toll Route) to overcharge him, has won $50,000 in punitive damages. The judge found 407 ETR misused its “monopoly power” by suing Daniel Min in small claims and Ontario Superior Courts, siccing colletion agencies on him, and refusing his offer to settle during the three-year-old dispute. The highway has no toll booths and assesses tolls based on data from vehicle transponders and overhead cameras.

After seeking public input, an Ontario government task force report in early 2006 found a number of problems with the business practices of the 108-km, privately-operated expressway that skirts the northern edge of Toronto. That Review of Customer Service examined 1,137 complaints lodged by 737 people. The review categorized the complaints as follows:
* Administration (33%)
* Billing Problems (30%)
* Other (16.3%)
* Collection Agency (15%)
* Technology (5.7%)

Despite that categorization, the task force felt that the majority of problems were rooted in technological inadequacies, with complainants expressing general concerns about the imperfection of transponder technology and casting doubt on the camera’s ability to recognize vehicles consistently and accurately. Comments included:

“In the spring of 2001 I received a statement from 407 ETR with a zero balance and a comment that my account was past due. Several months later, I received another statement that said balance due was $0.00 and a $30 late payment fee. Several phone calls to 407 ETR and several more $30 late fees later, and I still have an outstanding balance of now over $100 dollars because I didn’t send in a cheque for $0.00. Now the 407ETR is no longer telling me they will correct it, they say I owe money. I am fed up and not paying what I don’t owe.”

The company admits it experienced problems in its first two years (1999-2001) of operation, but that it has since appointed an ombudsman to deal with customer complaints. The highway operator also responded to a task force recommendation for lower commercial vehicle tolls: in July 2006 it began offering discounts for off-peak travel by heavy vehicles. On the other hand, 407 ETR has been quick to block licence renewals for users who don’t pay their toll bills.

407 ETR bought the highway for $3.1 billion from the Ontario government in 1999. The owners, Cintra Concesiones de Infraestructuras de Transporte, Macquarie Infrastructure Group and SNC-Lavalin, will record their first profitable year in 2006. Net income for third-quarter 2006 was $39.7 million.

407 ETR says its (lowest) toll rates compare very favorably against rates on American toll highways.

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