Trading standards officers are visiting the controversial Dingwall Road car park every day with police officers to warn drivers about unfair parking charges.
Croydon Council is heaping pressure on Park Right, which is charging a whopping £335 to release clamped cars, but has admitted trading standards had no power to close it down.
This week David Ezekiel, managing director of car park owners Retail Parking Solutions, said he had sent a letter to Park Right terminating the contract.
Park Right now has only three months in which to continue enforcing parking at the site.
Complaints have flooded in to the council and Croydon Guardian about the car park, which has been clamping motorists for parking in bays marked permit holders only, despite them paying for tickets and the signage being “inadequate and ambiguous”.
A spokeswoman for Croydon Council said: “Trading standards is extremely concerned about alleged unfair trading practices of a private parking company and clamping firms operating out of AMP house, Dingwall Road.
“Officers have been investigating a number of complaints from members of the public and have been visiting the site every day to see what action can be taken.
“There are concerns over inadequate and ambiguous signage at the site and letters have been sent to the company and issued to individual clampers requiring them to abide by the law.
“The council is urging motorists to steer clear of this kind of unauthorised parking operation and to use any of the town’s established car parks, which are run entirely professionally.”
The letter states that the signage needs to be clear, intelligible and unambiguous and the pay and display and permit bays need to be clearly marked, and warns that if the signage at the site was not improved by Monday, action would be taken.
The trading standards action is entirely separate from the planning enforcement action already taking place.
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