Lancashire County Council has agreed to refund motorists who were fined for driving in a new bus lane that had not been labelled clearly enough.
Around 23,000 motorists were fined a total of £1.3m for driving on the Fishergate Bus Lane in Preston.
However, an independent adjudicator found that while the county council’s measures were legal, the bus lane’s signing had been ‘inadequate’.
Cllr John Fillis, cabinet member for highways and transport, defended the bus lane, arguing it helped improve traffic flow and air quality.
However, he said the council would ‘give people their money back’ if it was deemed someone was fined unfairly.
He added: ‘These measures will stay in place while we review consultation responses and look into measures such as extra signing, following the adjudicator's findings.
‘We won't use cameras to enforce this bus lane while we review it and look into options.’