Wheel clampers will be banned from operating on private land in a bid to tackle rogue operators who exploit drivers by charging excessive fines.
The ban, which will be introduced in November, means that anyone who clamps a vehicle or tows it away on private land will face tough penalties.
Home Office minister Lynne Featherstone said the Government is committed to stopping “the menace of rogue private sector wheel-clampers once and for all”.
“For too long motorists have fallen victim to unscrupulous tactics by many clamping firms. Reports of motorists being marched to cash points or left stranded after their car has been towed are simply unacceptable,” she said.
“A ban on clamping and towing on private land will end this abuse and companies who decide to flout new laws will face severe penalties.”
Regional and Local Transport minister Norman Baker said that the rules for parking on private land should be “proportionate and should not result in motorists being intimidated or forced to pay excessive fines”.
There are currently 2150 individuals who are licensed by the Security Industry Authority (SIA) to clamp vehicles. At the moment, if someone wants to work clamping vehicles, they must hold a frontline licence from the SIA, and supervisors or directors must hold a non-frontline licence. This will be stopped once the new ban becomes a law.
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