The DVLA will block 'rogue' parking firms from driver's data if they fail to obey a new set of rules.
Under major new changes, the UK Government announced it will be cracking down on parking firms who fine drivers £100 or more due to unfair charges.
Fines will be slashed meaning motorists won't be charged more than £50 and a new appeals process will be brought in.
A code of conduct will also be introduced that all parking firms must sign up to.
This includes a ten-minute grace period before a late fine can be issued, and a requirement for parking firms to clearly display pricing and terms and conditions.
Rogue firms which break these rules could be barred from requesting Driver and Vehicle Licensing Agency (DVLA) data, making them unable to pursue motorists for their charges through the post.
The major new proposals are aimed to target firms hiding behind "non-specific, pseudo-legal and aggressive language when pursuing motorists".
It will also give drivers more protection when they accidentally put in the wrong number plate.
Parking enforcers also won't be able to put more excess fees onto any parking fines.
The measures will be a major boost to millions of motorists in England, Scotland and Wales and will help to draw people back to their local high streets by eliminating the fear of being unfairly caught out.
Minister for Levelling Up Neil O'Brien MP said: "Private firms issue roughly 22,000 parking tickets every day, often adopting a system of misleading and confusing signage, aggressive debt collection and unreasonable fees designed to extort money from motorists.
"The new Code Of Practice will set out a clear vision with the interests of safe motorists at its heart, while cracking down on the worst offenders who put other people in danger and hinder our emergency services from carrying out their duties."
A new appeals process will also be drawn up by ministers and parking firms who fail to comply will be forced to comply.
Any firm who does not decide to stick with the code of conduct could see their access to driver's data taken away from the DVLA.
The AA has praised the introduction of the new system. AA president Edmund King said: "For too long, those caught by private parking firms simply pay the charge to get rid of it. Thankfully these days are numbered.
"Drivers should feel confident that having a single Code of Practice and a new Appeals Charter will give them confidence to appeal and be properly heard.
"We are also pleased that honest mistakes, like mistyping the car registration into the machine, will now be automatically cancelled."
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