After an 18-month inquiry, the Local Government Ombudsman has today openly criticised aspects of the council's on-street pay and display parking, and residents' priority parking schemes.

The schemes were imposed on more than 8,000 parking spaces in about 400 streets in central Scarborough in June 2000. The council now admits at least 187 of these spaces were improper.

The Ombudsman said the scheme was flawed and that the council wrongly sued non-payers through a debt collection agency and the county court.

The verdict means that some drivers who were fined for on-street parking could ask the council for a refund. Each appeal would be treated on its own merits, says Scarborough Council.

Ten people taken to court for non-payment could now demand a refund, and possibly sue for damages or if their credit-rating has been affected.

A big sum has been spent on council legal advice and on changes to defend the controversial parking schemes. The legal bill has not been disclosed. The Ombudsman's 16-page report reveals:

The flaws were "more than minor".

The council's practice of pursuing unpaid tickets with civil court action was unlawful.

Complexity of the regulations were "no excuse" for the council.

The investigation was launched after a complaint by former Scarborough police traffic sergeant Keith Hughes when his daughter was fined £30 for parking in St Thomas Street. The council pursued her for non-payment.

Neither action was proper, and the council has had to waive the fine – and drop any legal action against the family.

The Evening News has found that some of the flaws have still not been remedied.