Huddersfield MP Barry Sheerman wrote to Clr Kath Pinnock after motorists were charged hundreds of pounds to recover their cars after they were clamped and towed away.
Drivers protested they were being charged far too much by clampers National Parking Control for parking on private land in Huddersfield.
Many said they did not know they were in the wrong.
Mr Sheerman called on Clr Pinnock to join him in work locally to settle the complaints, saying: "We don't want the town centre closing down because of parking problems."
Today, Mr Sheerman said he was "disgusted" by the reply from the council leader.
Clr Pinnock wrote that clamping was the responsibility of retailers and property owners.
She agreed that clearer signs would be helpful, but said it was not for the council to issue instructions.
Clr Pinnock has offered to get in touch with West Yorkshire Trading Standards, but says the council cannot take action.
Mr Sheerman said: "This is a wimpish reply.
"There is a public outcry over this and people want something done."