Residents in Kent were left feeling "stressed" and "anxious" after a parking firm tried to charge them to park on their own land.
UK Car Park Management put up signs on private land demanding locals pay if they want to leave their vehicles.
The firm threatened angry homeowners in Maidstone with a £100 fine if they refuse to pay the fee.
Residents noticed the signs being erected on May 10 and contacted the company to request they were removed.
One local said she could not get hold of the company while another was told the firm were "investigating it".
The signs have since been removed and Golding Homes - who manage the properties - confirmed the signs had been "put up by mistake".
However, residents are now demanding compensation for the anxiety caused by the blunder.
Local, Penny Jackson said she spotted four signs near Northumberland Road and informed the worker that they were in the "wrong place".
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The retired grandmother - who requires a walker to get out of her car - contacted the company five times before she managed to speak to someone.
The 73-year-old is calling for compensation amid the "stress they've caused and any damage they've done".
She added that one neighbour "was in a complete panic about it" and refused to believe her husband that they owned the land.
According to the pensioner, parking in the area is already "bad enough" with visitors using the front of properties as an "overflow car park".
Genette Pinwill, assistant director of tenancy and housing change at Golding Homes said: "The car parking signs near Northumberland Road were put up by mistake by our parking management company CPM.
"We've spoken to CPM were out on Friday afternoon to see our customers and have removed all of the signs.
"We're sorry for any upset this has caused customers."
