A report into the service at Lunar House in Croydon has described it as an "inhumane and degrading" experience for the migrants who use it.
Uncomfortable conditions in waiting and interviewing areas, an appalling record of lost documents and an absence of basic information for both users and staff are among the criticisms made by community group South London Citizens.
The group, established in response to accusations of incompetence and inefficiency at the Immigration and Nationality Directorate (IND), published the findings of its inquiry last Friday.
The 134-page report describes the IND's perception of how to treat people as being "deeply flawed" and heavily criticises the service's lack of basic standards of care.
This includes a lack of seating for elderly people standing for hours in the cold and the absence of a ticket queuing system for migrants who finally entered the building.
The report also highlights the frequent loss of vital documents including passports and the frustration for staff at Lunar House trying to process applications without them.
A report commissioner, Bishop Charles Henderson, described the service as a system which puts rules before people and that there is a "pervasive sense that minimum standards of comfort do not apply for migrants."
South London Citizens is a community group made up of churches, mosques, schools, trade unions and residents.
In May, it invited asylum seekers and staff to talk, confidentially, about their experiences of the service and the organisation has spent the last six months compiling the testimonies of 350 individuals and 50 organisations connected with the IND.
The findings have been published in the report, along with 28 recommendations, which include calls for better staff training and the development of gender and child-sensitive services.
A spokesman for SLC said: "The ball is now in the Government's court will they make the dialogue substantial enough to effect change or will they close the doors on the citizens of south London?"
In response to the report, the IND's new director general Lin Homer has agreed to attend the SLC's assembly on November 16 to discuss the report.
Representatives from SLC will also meet with immigration minister Tony McNulty to discuss the findings.
An IND spokesman said: "We are considering the findings and recommendations of the report. Senior officials within the Immigration and Nationality Directorate have met with the authors on a number of occasions during the inquiry and have engaged in constructive discussions with them.
"The recommendations in the report are based on the experiences of service users over many months. During that time a number of improvements have been made to the services and facilities. We are grateful that the report recognises the achievements already made.
"Dialogue with South London Citizens, as with many other stakeholder and partner organisations will continue to ensure that services and facilities are developed and delivered as successfully as possible."
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