In some cases, yes — you may still need to pay the impound release and storage charges even if the authorities later admit a mistake. The law gives police and local authorities the power to recover their costs for removal, transport, and storage, regardless of fault. However, if the impoundment was clearly unlawful or due to administrative error, you can challenge the decision and request a refund once the vehicle is released.

When payment is still required

To collect an impounded vehicle, the fees must be paid first. The pound staff have no discretion to waive them on the spot, even if they accept that something has gone wrong. This applies whether the car was taken in error, recorded incorrectly on the MID, or seized under mistaken identity. The priority is to clear the storage space and return the vehicle, not to resolve liability at the counter.

Once payment is made and the car is returned, you can raise a formal complaint or claim for reimbursement. The outcome depends on who authorised the seizure and the reason for it.

If the error was caused by the police

If police authorised the seizure based on incorrect information — for example, a vehicle wrongly showing as uninsured — you can submit a written complaint to the Professional Standards Department of the relevant police force. Include:

• the seizure notice reference number,
• copies of your insurance certificate and proof of payment,
• the receipt for recovery and storage charges, and
• a brief explanation of what happened.

If the police confirm the car should not have been seized, they may issue a refund or recommend a claim through their financial department. Some forces handle this through their central finance office, others through a dedicated complaints channel.

If the error was due to insurance records

Sometimes a vehicle is seized because the Motor Insurance Database (MID) wasn’t updated promptly. That can happen when a new policy is issued but not yet uploaded. Legally, the vehicle can still be seized if it appeared uninsured at the time, even if cover existed. In that case, refunds are rarely granted, as the seizure was lawful based on available data.

However, if you can prove that the insurer failed to register the policy in reasonable time, you can raise the matter with the Financial Ombudsman Service for potential compensation. This doesn’t always remove the pound charges but can help recover some of the loss.

If the pound acted incorrectly

Each police or council pound operates under a service contract that defines its duties. If pound staff damaged your vehicle, applied incorrect fees, or released it unlawfully to another person, you can claim directly against the operator. Ask for the name of their managing company and submit a formal complaint in writing. They must keep logs and CCTV to verify how your vehicle was handled.

Refunds and appeals

Refunds are rare but possible in cases of proven administrative or legal error. You’ll need to show that the seizure was unjustified, the vehicle was correctly insured or taxed, and the authority has accepted responsibility. Refunds are normally processed after internal review and can take several weeks.

If the complaint is rejected and you still believe the seizure was unlawful, you can pursue a claim in the small claims court. Before doing that, gather written confirmation from the police or DVLA admitting the mistake — without it, a court is unlikely to side with you.

Final note

You usually have to pay to release an impounded car, even if it was wrongly seized. Only after the vehicle is collected can you challenge the decision and request a refund. If the police or pound accept an error, they may reimburse the charges, but every case depends on evidence and written confirmation. Acting quickly — and keeping all receipts and paperwork — gives you the best chance of getting your money back.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.