Thousands of learner drivers to get refunds after hidden booking fees exposed

Thousands of learner drivers are set to receive refunds after an investigation found that hidden fees were added to driving lesson bookings from the AA Driving School and BSM Driving School.

An investigation by the Competition and Markets Authority (CMA) found that the companies failed to clearly show the full cost of lessons upfront when customers booked online. Instead, a mandatory £3 booking fee was only revealed at the final checkout stage.

This practice is known as “drip pricing” and is a deceptive pricing strategy where a business will advertise its products or services at a low price, but then add compulsory costs later in the transaction process.

Drip pricing is generally prohibited under UK consumer protection rules because it can mislead customers into thinking a product or service is cheaper than it really is.

As a result, parent company Automobile Association Developments has been fined £4.2m for breaching consumer protection law.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

More than 80,000 customers who booked lessons between April and December last year will share £760,000 in refunds, with the average payout expected to be around £9.

The CMA said customers were initially shown lesson prices that excluded the compulsory fee, only discovering the extra cost after selecting lessons, choosing times and entering personal details.

CMA chief executive Sarah Cardell said: “If a fee is mandatory, the law is clear: it must be included in the price from the very start – not added at checkout – so consumers always know what they need to pay.”

She warned that small, unexpected charges can have a real impact, especially at a time when many households are closely managing their finances.

In response, a spokesperson at the AA Driving School told Carwow: “Although the £3 booking fee was made clear to customers prior to their purchase, we acknowledge it should have also been displayed at the start of the online booking journey.

“Having listened to the regulator, we made immediate changes to our website to make the £3 booking fee more prominent. We are now refunding all relevant customers. Whilst we are disappointed with the outcome of the investigation, we have fully cooperated with the CMA throughout and would emphasise that protecting consumer rights has been central to our business for more than 120 years.”

What this means for leaner drivers

For learner drivers, this case is a reminder to look closely at the total price before booking lessons online. Even small added fees can quickly add up over multiple sessions.

The CMA ruling also strengthens your rights as a consumer. Companies must now be clearer about full costs from the start, making it easier to compare prices between driving schools.

If you’ve booked a lesson in the past year with either of these two driving schools, it’s worth checking whether you’re eligible for a refund. Keep an eye out for similar hidden fees when making future bookings, too.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.