It looks like a fine. Yellow envelope, official-looking logo, “Payment Notice”, “Breach Notice”, a $88 or $150 demand for overstaying at a shopping centre or medical centre car park. Then the letters start: “Final Notice”, “Debt Recovery”, “Legal Action”.
Here’s the thing most people don’t know: a private parking company cannot issue a fine. Only councils, police and government agencies can.
What it actually is
A private parking “fine” is a claim for breach of contract. The theory is that by parking, you accepted the terms on the signs (including the penalty for overstaying). To enforce it, the company would have to sue you in a small claims court and prove that contract. That’s expensive for them, especially for small amounts.
When is it enforceable?
For a valid contract, the terms must have been clearly displayed before you entered, in a way a reasonable person would see. Courts have been sceptical of small signs, signs at the back of car parks, and terms that are unclear. And the amount has to be a genuine estimate of the operator’s loss, not a penalty. A $150 charge for overstaying by 20 minutes in a free car park is very hard to justify as a “loss”.
The Australian Consumer Law also applies. Unfair contract terms in standard-form consumer contracts are void, and the ACCC has taken action against parking operators for misleading conduct, including making notices look like official fines.
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who is this about?
2. How much is at stake?
3. Do you have it in writing?
Your result is ready. Where should we send it?
How they got your address
Private operators obtain vehicle owner details from state registries, but access is restricted. In some states (New South Wales, for example) they’ve been denied access, making it hard to identify drivers at all. If you received a letter, they either got your details lawfully or through a debt collector who did.
What not to do
Don’t ring them and argue. Don’t pay a “reduced” amount to make it go away if you dispute it. Don’t ignore a genuine court document if one ever arrives (a statement of claim must be answered).
Your formal Legal Response
A short, firm letter is the right approach. It should:
- State that you do not admit any liability
- Note that the notice is not a fine and the company has no statutory power to issue one
- Require them to provide evidence of the alleged contract: signage, its location and visibility, photos with timestamps
- Assert that the amount claimed is a penalty and unenforceable, and may be an unfair term under the ACL
- Require all further contact in writing and warn that harassment will be reported to the ACCC
Operators run a volume business. A response showing you know the law puts your position on the record.
Bottom line
You don’t have to just pay because the envelope was yellow. Respond properly, once, in writing, and let the operator decide whether they want to test it in court over $88.
Claim Done drafts your Legal Response for $49. Done in about 5 minutes. You approve it before it is sent.
What happens when you put it in writing — properly
Same problem. What a prepared case looks like.