Westminster Council has revoked thousands of parking tickets issued to drivers on New Year's Day amid confusion over whether rules applied.
Many motorists thought Saturday was a bank holiday
The council said most of the 3,716 tickets issued on the day would be cancelled after drivers thought bank holiday rules were in place.
New Year's Day was not a bank holiday this year as it fell on a Saturday which meant restrictions applied.
The London council has also apologised for not making the rules clearer.
Councillor Colin Barrow, from Westminster Council, said the move was in response to the "widespread confusion" over whether it was a national holiday or not.
"Many motorists thought Saturday was a bank holiday and there would be free parking on meters and yellow lines," he said.
"In fact the bank holiday was on Monday so the parking attendants issued tickets quite correctly."
A spokeswoman from the Association of London Government, which provides an appeal service for London drivers challenging parking fines, said it was up to individual councils what parking restrictions were put in place and when they would apply.
Andrew Rogers, from Bromley Council, said parking restrictions were in place all year round.
"Our policy is that on public holidays tickets are issued more sympathetically so unless a car is parked dangerously generally a ticket will not be issued."
A spokesman for Kingston-Upon-Thames Council said although New Year's Day was not a bank holiday, it was treated as such and unless a vehicle represented a potential danger, parking rules were not enforced.