At a glance
A private parking ticket can be sent to a collection agency. But it won't damage your credit score the way a municipal ticket can.
Equifax Canada has stated it does not accept private parking ticket fines from collection agencies.TransUnion Canada has confirmed it does not report unpaid private parking fines.
Without a judgment from small claims court, a private parking ticket won't appear on your credit report. The collection agency can still call you and send letters. And the parking company can tow your vehicle or ban it from their lots.
Municipal parking tickets are a different situation entirely. Cities can hold your plate renewal, add penalties and report unpaid fines to credit bureaus through licensed collection agencies.
In this guide
What is a private parking ticket?
A private parking ticket is issued by a company that operates a parking lot. Not by a city or bylaw officer.
You'll find them at malls, hospitals, condo visitor lots, and paid lots run by companies like Diamond Parking, Concord Parking or Precise ParkLink. They look like real tickets, and some even include the word "violation". They're not.
Legally, a private parking ticket is a civil claim. It's based on the terms posted on signage in the lot. The company says you accepted those terms by parking there.
A 2016 CBC Marketplace investigation confirmed that private parking fees are contractual obligations, not enforceable fines. There's no court date on the ticket, no link to your licence plate renewal, and no statutory penalty for not paying.
Source: CBC News – Unfair parking fees on private lots aren't tickets
Can a private parking ticket be sent to collections?
A private parking company can refer an unpaid ticket to a collection agency. This happens regularly.
Some private parking companies handle collection through an in-house department that isn't separately licensed. Others sell blocks of unpaid tickets to third-party collection agencies.
Either way, the collection agency that contacts you must hold a provincial licence and follow provincial debt collection rules.
Being referred to collections doesn't necessarily mean the debt will show up on your credit report. That's a separate issue.
Will a private parking ticket affect your credit score?
A private parking ticket won't affect your credit score under current Canadian credit bureau policies.
Equifax Canada has stated it does not accept private parking ticket fines from collection agencies.
Source: CBC News – Unfair parking fees on private lots aren't tickets
TransUnion Canada has confirmed that it does not report information on unpaid private parking fines.
Source: Daily Hive – Do parking fines from private lots affect your credit score?
Borrowell, a Canadian credit-monitoring company, has confirmed that neither bureau includes private parking fines on credit reports. However, Eva Wong, Borrowell's co-founder, warns that mistakes can happen. If a private parking fine appears on your credit report, dispute it directly with the bureau.
The only way a private parking ticket lands on your credit report is through a court judgment. The parking company or collection agency would have to take you to small claims court and win.
For a typical $50 to $150 private parking ticket, that rarely occurs.
How is this different from a municipal parking ticket?
Municipal parking tickets and private parking tickets have completely different enforcement powers.
A municipal ticket is a bylaw infraction. Cities have legal powers that private companies don't.
If you don't pay a municipal parking ticket, your city can hold your plate renewal, add penalties, and send the debt to a licensed collection agency that reports it to Equifax and TransUnion.
In many provinces, municipal fines never expire. The city can pursue them for decades.
| Private parking ticket | Municipal parking ticket | |
|---|---|---|
| Issued by | Parking lot company | City or municipality |
| Legal basis | Contract (posted signage) | Municipal bylaw |
| Credit bureau reporting | Not accepted by Equifax or TransUnion | Reported through collection agencies |
| Licence plate renewal hold | No | Yes, in most provinces |
| Limitation period | 2 to 6 years (civil claim, varies by province) | No limitation on provincial offence fines in several provinces |
| Enforcement | Small claims court only | Towing, liens, plate holds, collections |
As of January 2024, the City of Ottawa signed a five-year collection agreement with Financial Debt Recovery to pursue outstanding municipal fines, including parking tickets.
As of 2023, the City of Toronto alone had more than $550 million in unpaid fines on its books, some dating back to the 1970s.
Source: CBC Ottawa – 'Insanely old' city ticket wreaks havoc on Ottawa man's credit score and CBC News – Failure to pay: $1.3B in fines dating back decades owed to provinces and territories
What can a collection agency do about a private parking ticket?
A collection agency pursuing a private parking ticket can call, text, email, and send letters.
Provincial rules apply. In Ontario, the collection agency must send a written notice and wait six days before calling. In British Columbia, calls are restricted to 7 a.m. to 9 p.m. Monday through Saturday and 1 to 5 p.m. on Sundays.
A collection agency can't garnish your wages, suspend your licence, or seize your property over a private parking ticket. Those powers require a court order or statutory authority that private parking companies don't have.
You have the right to request that a collection agency stop calling and communicate only in writing. You also have the right to request written details of the debt, including the original amount and the creditor's name. In British Columbia, Consumer Protection BC provides an online form to make this request.
Source: Consumer Protection BC – Debt collection
How do private parking companies get your information?
Private parking companies get your name and address through provincial vehicle registries.
In British Columbia, ICBC has agreements with private parking companies to release the registered owner's name and address for a specific licence plate. Phone numbers are not released.
These agreements, governed by BC's Freedom of Information and Protection of Privacy Act, require parking lot signs to inform drivers that ICBC can share this information.
Source: Daily Hive – Do parking fines from private lots affect your credit score?
Registry access only identifies the vehicle's registered owner. It doesn't identify who was driving.
Unlike a municipal bylaw, there's no statute making the owner responsible for a private lot's fees. This is one reason private parking companies often have difficulty enforcing tickets in court.
Some drivers provide their information directly through parking apps or lot registration systems. If you register a licence plate with a condo visitor parking system, the parking company stores your contact details on file.
What happens if you ignore a private parking ticket?
If you ignore a private parking ticket, the parking company sends reminders. Then they refer the ticket to a collection agency, which will call and send letters, emails and text messages.
If none of that works, the parking company's only remaining option is small claims court. Filing a claim costs at least $50 in most provinces, and the company must prove that a valid contract existed.
They also have to prove you were the person who parked there. A $50 to $150 ticket isn't worth the filing fee, the court time, and the risk of losing. Most companies don't bother.
Source: CBC News – Unfair parking fees on private lots aren't tickets
Provincial limitation periods apply. In Ontario, a private parking ticket is a civil claim. The parking company has two years to sue you under the Limitations Act, 2002. After that, it's too late.
Source: Government of Ontario – Limitations Act, 2002
The parking company can still tow your vehicle if you park in their lot again, or ban you from their property entirely. Park there again, and they'll spot your plate.
Frequently asked questions
Can a private parking company put a lien on my car?
No. Only municipalities with specific bylaw powers can place liens on vehicles. A private parking company's only option is small claims court.
Will changing my licence plate stop collection attempts?
Changing your plate stops the parking company from flagging your vehicle on future visits to their lots. It doesn't erase a debt already referred to a collection agency. The agency already has your name and address from the provincial vehicle registry.
Should I acknowledge the debt if a collector calls about a private parking ticket?
Be careful. Acknowledging the debt or making a partial payment restarts the statute of limitations on the debt. Ask for written details of the debt, and tell the collector to communicate only in writing.
Can a private parking ticket follow me if I move provinces?
A collection agency can contact you at a new address. But taking you to small claims court across provincial boundaries is harder and more expensive. The limitation period is governed by the province where the ticket was issued.
Is a private parking "ticket" actually a ticket?
No. A private parking notice is an invoice based on the contractual terms posted on the lot signage. It doesn't carry the force of a bylaw infraction or provincial offence. There's no court date and no connection to your driving record or licence plate renewal.
What is the difference between a parking company's collections department and a licensed collection agency?
Some private parking companies have internal collection departments that aren't separately licensed as collection agencies.
A licensed collection agency is registered with the province and must follow rules about notice periods, contact hours, and disclosure.
If you're not sure which you're dealing with, ask for the agency's provincial licence number.
Can I dispute a private parking ticket on my credit report?
If a private parking ticket appears on your credit report, it was likely reported in error. Both Equifax Canada and TransUnion Canada allow consumers to file disputes online. Under current bureau policy, private parking fines are not accepted for credit reporting.
Does ignoring a private parking ticket affect my car insurance?
No. Private parking tickets are not reported to provincial insurance regulators and don't affect insurance premiums. Only moving violations and at-fault collisions affect your rates.
File a complaint with your province
If a collection agency is breaking provincial rules while pursuing a private parking ticket, file a complaint with your province's consumer protection office.