Can You Settle Parking Tickets? Know Your Options

Parking tickets can go from minor annoyance to major headache if you forget to pay them, which is all too easy to do sometimes. You might be so focused on paying household bills or debt that parking fines get overlooked. 

The problem is that a $25 ticket here or a $35 ticket there can balloon into a larger amount when late fees and penalties get tacked on. Debt settlement might be an option if you can't afford to pay the balance in full. 

Settlement means you pay less than the full amount owed, and the rest is forgiven. Let's look at how to get debt relief for unpaid parking tickets. 

Public vs. Private Parking Tickets

Parking tickets can be issued by public agencies or private companies. Whether your parking fines are eligible for potential settlement depends on who ticketed you. 

• Public ticketing systems are operated by the government and issue tickets for parking that's open to the public. Public parking rules may be enforced by local law enforcement, parking enforcement officers who work for the city, or contracted companies. 

• Private ticketing systems are operated by companies that aren't associated with the government. Parking enforcement officers patrol private parking areas and issue tickets for violations. 

If you get a parking ticket, it should tell you who issued the ticket, along with the amount owed, and the payment due date. There may also be a section that tells you why you got the ticket. 

Situations that could trigger a parking ticket include:

• Parking at an expired meter

• Blocking a driveway or sidewalk on a public street

• Parking in a private space that's assigned to someone else

• Parking in a no parking zone or loading zone

• Blocking a fire hydrant

• Parking in a handicapped space without a handicapped placard

• Parking for longer than the posted time allowed

• Parking too close to an intersection or crosswalk

Keep in mind that some parking infractions might get you towed instead of ticketed. For example, if you park in a private lot owned by a restaurant that's marked "For Customers Only," but don't eat there, the business owner could skip the ticket and call a tow company instead. 

Can You Settle Parking Tickets?

Yes, it's possible to settle unpaid parking tickets. The type of tickets you owe, the amount, and who owns the debt can influence your chances of successfully reaching a settlement agreement. Here's how it usually works, along with a breakdown of what can happen if you don't pay. 

If you owe public parking tickets:

• You're generally expected to pay fines in full, though you typically have the right to appeal the amount. You might be able to get a reduction in the fine if you can demonstrate a sudden financial hardship. 

• If you don't pay, you could be charged late fees and penalties. Your vehicle could be booted, you may be blocked from updating your registration, and your license could be suspended. 

If you owe private parking tickets: 

• You may be able to settle with the parking enforcement company, or a collection agency if the debt was sold. You could settle parking tickets yourself, or work with a debt resolution company.

• If you don't pay, the parking company or collection agency could bring a debt lawsuit against you for the amount owed, plus court fees. 

Do parking tickets hurt your credit score? Usually no, unless private parking fines are sent to a collection agency. At that point, collection accounts associated with parking fees could show up on your credit reports, which would affect your credit scores. 

Judgments from credit card debt lawsuits and other debt lawsuits don't show up on credit reports anymore, but they're still part of the public record. So if you were to apply for a loan, a lender could check public records and see that you'd been sued for unpaid debt in the past. That may work against you in the loan approval process. 

Can you just ignore parking tickets? No, since doing so can hurt you in different ways. Debt settlement can potentially offer a way out of a tough situation if you owe several thousand dollars in parking fees and can't afford to pay in full. 

How to Settle Parking Tickets

If you owe public parking fines, the ticketing agency may have sent a notice of the debt to you. A private ticketing company or debt collector can do the same. Here's what to do next if you've gotten a notice about unpaid parking debt that you want to settle. 

• Validate the debt. Federal law gives you the right to request validation of debts that someone else claims you owe. When you get a collection notice, it should explain this right to you and tell you how long you have to send a debt validation letter. This is a formal request to have the ticketing company or debt collector verify that you actually owe what they say you do. 

• Know who you owe. Check the debt notice to see whether you owe a public or private ticketing agency. That will determine how you approach a settlement. 

• Figure out what you can pay. The best way to get rid of parking debt is to pay it in full. If you can't do that, you'll need to look at your budget and savings to figure out what you can realistically pay. 

• Ask for relief for public parking tickets. If you owe parking fines to the government, you can try to bring the amount down by appealing it or asking for a reduction. Some jurisdictions may reduce your fines or waive them if you agree to attend traffic school or complete community service, or if you can show proof of financial hardship. You can reach out to your local code enforcement office or parking authority to discuss your options. 

• Weigh DIY vs. professional debt settlement. If you owe private parking fines, you may be able to settle the debt for less than the full balance. You'll need to decide if you want to attempt this yourself or work with a debt settlement company. The advantage of working with a debt relief company is that an expert does the heavy lifting for you, so you can focus on living your life. 

• Pay the settlement and check your credit. If you're able to settle private parking ticket debt, either yourself or with a debt resolution company, the final step is paying the agreed amount. You might do this in a single lump sum payment or a series of smaller payments. After you pay, check your credit report to make sure the debt is reported as "settled" or "paid as agreed.” 

It's wise to keep a paper trail of any communications you have about unpaid parking tickets, starting with your debt validation letter. Also, you may not know that there can be tax implications to forgiven debt. You may want to talk to a tax expert about debt settlement tax impacts before you try to resolve parking tickets.