Exclusive: A Sydney motorist was slapped with a $130 fine and told his licence would be suspended for failing to pay a parking fine – even though he had paid it in full.

Andy was fined $140 for overstaying a parking meter in Chatswood, on Sydney's Lower North Shore, in August last year.

He applied for a payment plan through Revenue NSW and was approved.

Andy said he made four payments online and finished paying off the fine four days before the final payment was due.

He got the shock of his life when he received a letter in February saying the fine was still outstanding.

Have you got a story? Contact reporter Maddison Leach at [email protected]

The letter said Andy's license would be suspended if he didn't pay a further $130 within a fortnight.

"I'm undergoing medical treatment at Royal North Shore Hospital and have to drive there every two weeks," Andy told nine.com.au.

Losing his licence would be devastating.

Andy contacted Revenue NSW for more information and a review of the suspension and additional fine.

"It turns out my payments were not recorded in Revenue NSW's system, so the fine went into default," he claimed.

"But I know I paid them and gave receipt numbers."

He also provided Revenue NSW with bank statements as proof of payment.

Revenue NSW may apply sanctions when customers do not meet the payments outlined in a payment plan.

Nine.com.au understands that Revenue NSW spoke with Andy to explain the situation, after which all additional charges were waived and the sanction was lifted.

Andy was relieved to learn his licence is no longer at threat of suspension.

"It was a rotten experience and the stress caused by being faced with loss of licence was huge," he said.

"The end result was fair and just but [the mistake] wasted a lot of my time and caused a lot of stress and worry about losing my licence."

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.