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Calls for streamlined taxi complaints system as passengers report more drivers refusing to use meter

Passengers who believe they have been ripped off by taxi drivers demanding upfront fees and refusing to use the meter say it is too difficult to report them.

Regular taxi users in Sydney say the practice is on the rise, particularly at busy times, but there is little data as most people do not report incidents.

Mark Lee catches cabs two to three times a week.

He said a couple of weeks ago after a Thursday night dinner in the Sydney CBD, eight taxi drivers asked for cash, tried to set a flat fee or drove off after he said he wanted to go to Balmain.

"This was never an issue pre-COVID, but now the city has woken up again … it's happening all the time," Mr Lee said.

So is negotiating an upfront fee allowed and what can passengers do about it?

Is it legal?

No. When you hail a taxi on the street or get in a cab at a rank, including Sydney airport, the driver must use the meter.

If a driver asks for an upfront payment to ensure passengers don't run away without paying, they must still use the meter and give change at the end of the trip.

If you use a booking service such as the 13cabs app, you will get an upfront fare estimate before the journey begins and a prepaid option.

NSW Taxi Council deputy chief executive Nick Abrahim urged passengers to insist on using the meter and if drivers refused, report them so the council could stamp out the practice.

"We want to make sure that if any drivers are found to be doing the wrong thing by passengers, we want them to be reported and we want appropriate and swift action to be taken," Mr Abrahim told ABC Radio Sydney.

How do you report it?

It is not easy, according to those who have tried it.

Your first port of call is the taxi service provider. The more information you have the better.

Mr Abrahim said passengers should take note of the driver's ID and company they worked for, which should be displayed clearly on the dashboard.

NSW Fair Trading said customers should always ask for a receipt at the end of any trip, with a supplier's name and ABN or ACN.

If you are outside the vehicle, try to grab the car's registration and brand.

Finder head of consumer research Graham Cooke wrote about his experience trying to get a refund when he was overcharged by a taxi driver earlier this year.

In his case, there was a taxi provider and a taxi payments company listed on the receipt.

"When I contacted both of them, they both claimed that they weren't actually responsible for the taxi journey," Mr Cooke said.

It was the beginning of a frustrating process.

Where else can you go?

If you are unsatisfied with the company's response, you can try a government agency.

The NSW Point-to-Point Transport Commissioner regulates taxis and ride-share companies. 

The commissioner can investigate complaints about cabs not using a meter or haggling, and drivers face fines for breaches. 

"In order to be able to investigate a matter, the commissioner's team is assisted if passengers are able to provide important information such as date and time, the number plate and the service provider," a spokesperson said.

However, if you are seeking a refund, then you are directed to NSW Fair Trading.

Forty-eight complaints have been made to NSW Fair Trading about taxi providers since the start of 2021.

Of those, 31 related to overcharging or charges above the quoted price.

Why don't people report illegal taxi practices?

Anecdotal reports suggest the figures are not a true indication of how common the practice is.

Mr Lee once took a photo of the driver's ID and told the driver he was going to report him.

"The driver didn't care," Mr Lee said.

He did not pursue it, saying "there's no clear pathway", and supported calls for a centralised complaints system.

The NSW Taxi Council wants the Point-to-Point Transport Commissioner to take responsibility for a centralised customer feedback portal. 

"Unfortunately we have seen a lot of these issues cropping up and the way complaints have been handled has been less than ideal," Mr Abrahim said.   

Michael Hall has only taken two taxis in Manly this year and said both were unmetered.

He reported it to the NSW Taxi Council at the time, which told him to go to the taxi company.

Mr Hall said it was not worth it over the small fare. 

"I don't think the taxi company is going to do anything about it," he said.

In Mr Cooke's case he went to his credit card company as a "last resort".

"They issued the refund within two days. And that was unfortunately how I had to get it done."

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