A motorist was given a ?100 fine after his car was clamped on his own driveway.
Patrick Sepulveda, 45, was told the Peugeot 307 estate was sticking out six inches onto the pavement.
Father-of-two Mr Sepulveda and his wife Clair, 35, offered to move the car fully onto their driveway in Portishead, near Bristol.
Mr Sepulveda, who lost his job as an architectural technician last year, said he took the car off the road because he could not afford to run two vehicles.
Although he filled in the necessary forms, the DVLA sent its official round to check, and spotted the "illegal" parking.
He notified the DVLA and completed the SORN (Statutory Off Road Notification) certificate as proof the car was untaxed and off the public highway.
But on Monday, the DVLA sent contractors NSL Services to check the vehicle had been parked legally and was out of use.
They spotted the car's offside wheels were protruding by six inches onto the pavement at the end of couple's driveway - and clamped it minutes later.
Mr Sepulveda said: "We have been careful with our budget since I lost my job and this was the last thing we needed and the whole incident has caused a lot of distress and upset."
A DVLA spokesman said: "Upon receipt of any complaint, DVLA will ask our contractor, NSL Services Group, to investigate.
"If a vehicle with a SORN notice is partially parked upon the public highway, enforcement action may be taken.
"DVLA is not prepared to comment on an individual case with a third party, but I can confirm that we were able to resolve the situation with the keeper."
The DVLA has since agreed to waive the fine.