I know that when I lived in Edinburgh, residents parking had to be paid for by way of a residents permit, so that they had use of the spaces, but not a guaranteed space, but still had to pay a substantial amount for an annual permit, I don't know if a similar scheme operates where you live Raggy. P.S this is for on street parking.
To answer your question Latiku - I cant see that the woman would go to the police, especially as she is well aware that she is in the wrong in the firts place, i wouldn't worry about it.