Parking companies love to use standover tactics to bully people into paying tickets, but they actually have no power to 'fine' you.

This story first appeared in 2016 and has been republished as the conversation around parking tickets has reignited.

Sprinting back to your car, you spot the telltale paper flutter halfway across the parking lot. You're four minutes late, and you've been slapped with a $65 ticket.

As your blood pressure rises, you run the math in your head. You paid $12 for eight hours of parking, which works out to a very reasonable $1.50 an hour. Now you're being stung $65 for an extra four minutes, which works out to a very unreasonable $1000 an hour.

Worst of all, the carpark is empty, so you haven't cost the company any income. How on earth can this rort be legal?

Good news for everyone who hates greedy parking companies – it isn't. These tickets aren't worth the paper they're printed on, because private landowners have no power to 'fine' you.

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It's true that you agreed to a legally binding contract as soon as you drove into the parking lot. Thankfully, New Zealand law protects consumers from the exploitative clauses that corporates love to slip in the fine print.

Let's consult the Ministry of Consumer Affairs. Under contract law, parking companies can only claim for "the actual and reasonable costs they incurred". Charging $65 for a short overstay in an empty carpark is as far from reasonable as you can get.

Here's what to do in this situation. Work out how much you actually owe – in the example above, 10c is the fair amount. Remember the operator also has admin costs for issuing tickets, so you could round that up to a few dollars. Write out a cheque, or make the payment by internet banking, then send them this letter.

Dear Parking Company,

I was four minutes late in returning to my car due to [Your Reason Here].

I have made payment of $5 to cover my transgression.

As you will be aware, by law you are only allowed to charge for the actual and reasonable loss suffered by my overstaying, rather than impose any sort of penalty.

I therefore consider this matter settled in full.

Regards,

[Your Name Here]

I've given this exact template to friends, and they've used it successfully. It's important to be polite, and offer to pay a reasonable amount. Chances are the company will drop it on the spot. Their only other option is to take you to the Disputes Tribunal – at their own expense – knowing that they'll probably lose.

If they still demand you pay in full, tell them you dispute the liability. At this point, they'll probably start getting heavy by putting a debt collector on you. Tell the debt collector the debt is in dispute, and send them copies of the letters you've exchanged with the parking company. Be sure to also let them know that if any default is listed on your credit rating, you will complain to the Privacy Commissioner.

This might be too much stress and hassle for some people, which is fair enough. At the very least, be sure to push back by sending them the initial letter with the fair payment. If they reject it, you can choose how far you're willing to go.

If enough of us take the time to protest unfair and unenforceable penalties, the parking companies will have a major headache on their hands. They don't have the resources to try and put out a million fires, so they'll be forced to actually change their policies and stop being evil in the first place.

Of course, there are a couple of agencies who can actually fine you – the council and the police – and they love to crack down at this time of year. This is my last column for the year, so we'll dive into those strategies in January. Happy holidays!