£70 debt recovery fee parking: why it's added, and what's changing

What the £70 is

When a parking charge isn't paid, the company often passes it to a debt collector or a law firm. Their letters usually add an amount described as debt recovery costs. With a £100 charge, that's where the familiar £170 total comes from.

Today, the industry's Single Code of Practice caps that add-on at £70. Whether it can be recovered at all is disputed, and courts have taken different views. If a claim reaches court, a judge decides what, if anything, is owed.

Why companies add it — and why it's disputed

Parking companies say their signs allow them to recover the cost of chasing unpaid charges. Others argue that the £100 charge is already set high enough to cover enforcement costs, so adding £70 means recovering the same costs twice. Courts have reached different conclusions in different cases, which is why the government is reviewing it.

The keeper maximum under PoFA

If a company is pursuing you as the registered keeper (not as the driver), paragraph 4(5) of Schedule 4 to the Protection of Freedoms Act 2012 says the most it can recover from the keeper is the amount stated in the notice to keeper. Our Letter of Claim reply letter points this out and asks for a breakdown of any added amounts.

What the new Code changes (not yet in force)

• The £70 cap is kept — as an interim measure, so motorists are no worse off.
• A new consultation on debt recovery fee levels, including a lower cap or banning the fees altogether.
• Misleading or intimidating language in debt recovery letters is banned.
• The £100 charge cap and the 40% early-payment discount stay the same.

Today vs when the new Code starts

If your letter says £170

1. 1

   Step 1: Work out which letter it is

   A debt collector letter is only a letter. A Letter of Claim from a law firm needs a reply within 30 days.

2. 2

   Step 2: Check the original charge

   Was the notice to keeper on time? Were you a customer? These points still matter.

3. 3

   Step 3: Ask for a breakdown

   In any reply, ask them to explain every amount added to the original charge.

4. 4

   Step 4: Don't ignore court papers

   If a claim form arrives, respond by the date on it.

If you decide to pay

Paying is a valid choice. If you do, it's reasonable to ask whether the company will accept the original charge without the add-on. Whatever you agree, get written confirmation that the matter is closed, keep proof of payment, and keep every earlier letter.

Read more in our guides to the parking charge debt collector letter, the DCBL letter and the new private parking code of practice 2026.

This is self-help information, not legal advice. Last checked against GOV.UK: Monday 2 November 2026. You don't have to say who was driving, but never say anything untrue. Examples on this page are illustrative and based on typical situations, not real cases.

This is a free self-help guide, not legal advice. Check your own letters and dates. If you're unsure, get free advice from Citizens Advice. Written by the Parking Help team.