Wheel clamping is being called 'archaic' amid talks of scrapping the practice.

The Government has confirmed it's working on legislation to either control wheel clamping, or outlaw it altogether.

Transport Minister Phil Twyford wants it banned, describing wheel clampers as "bottom feeders".

Currently there's no limit to what someone can charge to remove a clamp.

Consumer NZ head of research Jessica Wilson told Kate Hawkesby it's nothing more than a stand over tactic.

"We've been calling for it to be banned for some time, it's a ridiculous practice. And these guys in this industry, they're real cowboys."

She says at the moment there's only a voluntary code of conduct.

"There's only a few signatories to the code, and they're not the kinds of outfits that are going around prowling on people in car parks and clamping their cars as soon as they leave the car park."

Consumer Affairs Minister Kris Faafoi says while it's unlikely wheel clamping will be banned overnight, a bill is being taken to Cabinet which would regulate the industry.

LISTEN TO JESSICA WILSON TALK WITH KATE HAWKESBY ABOVE