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Private car park debts

Information about debt recovery by private car park operators.

  • This topic covers

    This topic covers

    Private car park operators trying to recover a debt from people that enter and use their car park, including:

    • why these debts are different to fines
    • how a private car park operator might try to recover the debt
    • how a consumer can respond to the debt
    • breach of contract claims
    • claims in the NSW Civil and Administrative Tribunal (NCAT).

    The operators are usually alleging that the driver hasn't followed the terms or rules of the agreement about parking in that area or facility. 

Time limitAction
Six yearsFor private car park operators to start legal action for a breach of contract.
28 calendar daysTo respond to a Statement of Claim. If you do nothing, the creditor (the private car park operator) can ask the Court to make a default judgment against you.
Six monthsFor a creditor to serve Statement of Claim, from the date it is filed with the Court.
Nine monthsFor a creditor to apply for default judgment, from the date of filing the Statement of Claim.
12 yearsFor a creditor to enforce a judgment.
Three yearsTo apply to the Consumer and Commercial Division of the NSW Civil and Administrative Tribunal (NCAT), from the time when when the cause of action arose. This can depend on your circumstances, for example, it may be when the goods or services were supplied, or when the problem first occurred.

Organisation

OrganisationResponsibilities
Small Claims Division of the Local Court NSWCan determine claims of less than $20,000. Private car park operators may claim that a debt is owed to them because of a breach of contract. 
NSW Civil and Administrative Tribunal (NCAT)Hears consumer claims or claims alleging unfair contract,

Legislation

AuthorityCovers
Fair Trading Act 1987 (NSW)Rules that apply to businesses providing goods and services.
Competition and Consumer Act 2010 (Cth), Schedule 2 Australian Consumer Law (ACL) Unfair contract provisions.

Common termDefinition
ContractAn agreement that is legally binding if it meets certain requirements, such as having an offer and acceptance between the parties and consideration (benefit to each party by agreeing to do or not do something).
DefenceThe document a def​endant can file if they dispute the debt claimed by the plaintiff in a Statement of Claim.
​Defendant
​If the creditor starts legal action against the debtor, the debtor is called the defendant.
Fine

An amount of money that must be paid to a government authority, usually Revenue NSW, when a law or rule is disobeyed. A fine is also called a penalty notice or infringement notice.

A private car park debt may look like a fine, but it is different.

​Plaintiff
​A person who starts a civil case against another person in court.

Statement of Claim

A document used by the plaintiff to start a civil case in court. It tells the Court and the defendant what the plaintiff is claiming and why.

OrganisationFee
Local Court of NSWFees
NSW Civil and Administrative Tribunal (NCAT)Fees at NCAT

OrganisationForms
Uniform Civil Procedure Rules (UCPR) Civil forms
NSW Civil and Administrative Tribunal (NCAT) Consumer claims

OrganisationTypeCosts
Small Claims Division of the Local Court NSWLegal costs

You can claim legal costs if you are successful in your case and have a lawyer representing you in the Local Court. 

If you are in the Small Claims Division of the Local Court, the amount you can claim is based on a scale of fees.

NSW Civil and Administrative Tribunal (NCAT)Legal costsGenerally, each party in NCAT pays their own costs, unless there are special circumstances.
Woman working on computer

Frequently Asked Questions

Frequently Asked Questions about private car park debts.

Go to questions

Services

Community Justice Centres

Community Justice Centres offer free mediation services.

Community Legal Centres NSW

Community Legal Centres can provide free legal help to people in need.

NSW Fair Trading

NSW Fair Trading can help customers resolve complaints with businesses.

NCAT

The NSW Civil and Administrative Tribunal (NCAT) can determine consumer disputes.

Solicitor Referral Service

If you need a lawyer, the Law Society of NSW Solicitor Referral Service (SRS) can provide you with a referral.

Last updated: February 2024