The Driver and Vehicle Licensing Agency (DVLA) will prevent 'rogue' parking firms from motorists' data if they do not abide by new rules.
As part of significant changes, the UK Government revealed that it will be clamping down on parking firms who penalise motorists by £100 or more due to unjust charges.
Penalties will be cut, meaning drivers will not be charged over £50 and a new appeals process will be introduced.
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As reported by the Daily Record, a code of conduct will also be implemented that all parking firms must agree 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 that do not follow these rules may be banned from asking for Driver and Vehicle Licensing Agency (DVLA) data — which would make them unable to pursue drivers for their money by post.
The proposed changes are intended to target firms that hide behind "non-specific, pseudo-legal and aggressive language when pursuing motorists".
Drivers will also be given greater protection when they accidentally put in the wrong number plate.
In addition, parking enforcers will not be able to add more excess fees onto a parking fine.
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."
