Traffic wardens patrolling Bicester's first residents' parking scheme are powerless to fine motorists flouting the new rules, officials have admitted.
Cherwell District Council is unable to slap charges on motorists ignoring the restrictions - and no drivers have been punished for ignoring the rules since the scheme was launched three months ago.
Instead of sticking fines on windscreens, Bicester's four full-time traffic wardens are jotting down registration numbers and handing motorists notices warning they could be prosecuted.
The information is then used to compile complex and lengthy case files with the intention of prosecuting repeat offenders through the courts.
But officials could not say how many times motorists would have to be caught ignoring the restrictions before they would face court.
West and Jan Coggle, of Henley Gardens, paid £75 for permits to park their two cars in the residents' zone.
Mr Coggle, 48, said: "The residents' parking scheme is a complete farce.
"We have paid money for these permits for nothing. There are a few persistent offenders who I have seen parking in the street time and time again and they obviously haven't received a ticket.
"This is a disgrace. I know of neighbours on low incomes who need their cars to get to work. They can ill-afford the £50 fee, and are unable to park because of non-permit holders.
"This is madness. Why should we have to pay and everyone else get away with it?"
He said he was considering taking legal action to get his money back.
He said: "The parking wardens have got no power. It is madness. It is a total sham. Their hands are tied."
Roger Sherratt, 44, of Henley Gardens, said: "Repeat offenders obviously know they are not going to get prosecuted and continue to park there regardless."
A Cherwell District Council spokesman said Oxfordshire County Council had refused to delegate its powers to issue fines.
She said Cherwell had been asking for the powers since the scheme started this January.
She added: "Cherwell's only option is to prosecute.
"This can be lengthy and time consuming as we have to develop a file, and prove that people are violating the traffic order more than once.
"We are making representations to OCC to request that we be given delegated powers to implement measures other than prosecution."
She denied the situation was the result of a mistake and said it had always been the plan to see how easy it was to prosecute before applying for extra powers.
George Reynolds, Cherwell's community portfolio holder, said: "I am unaware of any problems with the parking enforcement in Bicester, however I am seeing the relevant officers later this week and we will discuss this then."
An Oxfordshire County Council spokesman said: "We are ready and willing to discuss the detail of the law, as it relates to residents' parking with Cherwell District Council."
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