Croydon Council is no longer clamping vehicles parked illegally in the borough's streets - they are being removed and taken to the pound instead in a move that is costing drivers hundreds of thousands of pounds a year.

Vehicles lifted from the streets of Croydon and taken to the Stubbs Mead pound netted the council more than £700,000 last year.

Between April 1, 2005, and March 31 this year, 4,727 vehicles were removed to the pound, according to recently published figures from the Association of London Government.

In July the Government issued driver-friendly parking guidelines for consultation which advised council contractors they should only clamp vehicles if their owners repeatedly fail to pay fines - in other words as a last resort.

But the council now removes vehicles from the street as a matter of course, without ever clamping. The policy change was implemented just over a year ago, but the council has done little to inform drivers of the change.

In two of Croydon's neighbouring boroughs, Merton and Sutton, no vehicles were impounded last year.

Only nine were towed away in Bromley, although 8,059 were impounded in Lambeth.

Each taken to the pound in Factory Lane costs the owner at least £150 to release.

The initial Penalty Charge Notice fee and £25 for each day the vehicle rests in the pound is also added on.

That means the average 13 vehicles taken every day nets the town hall a daily income of £1,950 and an annual bounty of £709,050.

In the 128 days from April 1, 2005, to August 6, 2005 - when the council ceased the practice - 75 vehicles were clamped. The £65 charged to motorists for removal of clamps added up to £4,875.

Under the new removal policy the council would make £249,600 in the same number of days.

The figures have angered road users in the borough and Peter Morgan, chairman of the Croydon Road Users' Forum, criticised the council for removing vehicles, branding it "over the top".

"Croydon is known for being very hot on removals," he said, "There was a lady who parked her car on a Sunday in a pay and display space who thought it was free and she got her car towed away.

"I think it is totally over the top."

He also spoke angrily as he claimed that no publicity was given by the council to the fact that they chose to stop clamping vehicles.

"At the road users' forum I tried to get that discussed but it wasn't taken forward," explained Mr Morgan.

Croydon Council defended its removal policy and said that it is done for the benefit of others.

A council spokesman said: "A principle issue in the council's decision to stop clamping vehicles is the fact that, once clamped, the vehicle continues to cause an obstruction and deprive other users of the permitted parking space.

"Removal of the vehicle to the council's pound obviously frees up the space, to the advantage of other road users."

Mr Morgan agreed that vehicles which are causing a hazard as well as prolific offenders should not simply be clamped, saying: "Removing is legitimate if the vehicle is causing a problem or is a safety hazard but not if it is because a car has stayed over time for too long.

"I think they're far too ready to remove vehicles and I don't think that is justified. Many are removed when there is no good reason which has a big impact on the driver who finds their car is not there and then has to somehow make their way to a pound and spend a huge amount of money."

Edmund King, director of motoring organisation the RAC Foundation, said that Croydon Council was right to tow vehicles away but only if they are causing an obstruction.

"We have no problem with that if there is a safety implication," he said. "But one has to question whether cars should be towed away when a parking ticket is normally adequate punishment. If they are towing away in this circumstance, one has to question whether they are doing it to gain revenue, rather than towing away because of a safety reason.

"It would be interesting to see why so many cars in Croydon are being towed away."

The council spokesman added: "This is a policy that is being considered by a number of local authorities and it is expected that, as a result, the number of clamped vehicles will fall."

But Mr Morgan remained adamant that the current system is flawed.

"The present level of fines is too high and they are too ready to remove vehicles," he said.