Devon county council have confirmed that they incorrectly collected 85 thousand pounds from drivers, for parking dispensation permits.
The permits allow drivers to park in restricted areas and are mainly bought by tradespeople.
It's emerged that the council have been charging drivers five pounds over and above the application fee since September 2015, and will now have to refund them.
A spokesman said the council hasn't done anything unlawful but has already adjusted the charges and will put measures in place for an appropriate and compliant charging mechanism.
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