Cities Are Refunding Millions in Illegal Parking Fees — Check Your Citation

If a parking citation showed up with late fees and penalties already stacked on top of the base fine, you are not necessarily looking at a bill you have to pay. Across the United States in 2026, courts have ruled that cities illegally over-charged drivers — and ordered refunds running into the tens and hundreds of millions of dollars.

San Diego: $16M Owed to More Than 174,000 Drivers

In a class-action ruling reported in June 2026, a judge found that the City of San Diego illegally collected parking violation late fees and penalties for roughly three years, potentially entitling more than 174,000 people to refunds. The case covers citations issued between February 2022 and March 2025, and the city was found to owe plaintiffs more than $16 million.

The core problem was notice. Under the California Vehicle Code, the city must send an initial notice giving recipients 14 days to pay the base fine without penalty. The lawsuit alleged the city instead sent notices with late fees already added — denying drivers the chance to pay the base amount on time. The city denies the allegations, but has since changed its practice to provide at least 21 days' notice before adding penalties.

Chicago: $163M and a $250 Cap

San Diego is not alone. In a separate February 2026 ruling, a Cook County judge found Chicago liable for roughly $163 million in overcharges and interest on more than a million tickets issued between 2012 and 2022, after determining the city exceeded a state-law cap of $250 on such fines. The state had capped those penalties precisely because the city's administrative adjudication system uses a lower burden of proof than a courtroom — a due-process safeguard the court found the city had breached.

What This Means for Your Citation

These rulings turn on principles that apply far beyond San Diego and Chicago. When you receive a citation, check three things:

• Notice and timing. Were you given the legally required window to pay the base fine before penalties were added? Premature late fees are a real, citable problem.
• The amount. Do the penalties exceed any statutory cap in your state? Stacked fees can push a charge past what the law allows.
• Due process. The 14th Amendment guarantees proper notice and a genuine opportunity to contest. If the city skipped its own procedures, that is a defense.

Add the usual grounds — unclear or non-compliant signage under the MUTCD, a working meter or valid payment, or a simple factual error on the ticket — and many citations are weaker than they look.

Contest It in Writing, Promptly

Most cities give a short window to contest before penalties escalate. Submit a written contest setting out your grounds, attach your evidence (photos of the signage, your payment proof, the citation itself), and keep copies of everything. If your administrative contest is denied, most jurisdictions allow a further hearing before a judicial officer.

Sources

• NBC 7 San Diego — "City of San Diego illegally collected millions in parking ticket late fees: Judge" (June 2026)
• Chicago Sun-Times — "City must refund millions for ticket overcharges" (February 2026)
• Reason — "Court rules Chicago is liable for $163 million in overcharged parking and sticker fines" (February 2026)