Law-abiding Charles Ramdeen was arrested and handcuffed on suspicion of stealing a car - his sister's.
Mr Ramdeen, 34, of Observatory Street, Oxford, parked his sister's Ford Escort in Ship Street, Oxford, while he visited an employment agency, but returned to find the car alarm sounding.
He said: "The alarm is very sensitive and must have gone off by accident. As I went back to the car, I passed a parking attendant. I said to her, 'It's a noisy car alarm, isn't it'?
"Then I turned the alarm off with the immobiliser and drove home.
"When I pulled up outside my house, I was suddenly intercepted by a police car and told to pull over.
"The officer said, 'I am arresting you on suspicion of car theft' and I was told my rights and handcuffed. I could not believe what was going on. I have never been arrested before in my life."
Officers checked out the Escort while Mr Ramdeen was put in the back of a police car - in front of his neighbours and staff at his local pub, The Horse and Jockey.
Dad-of-two Mr Ramdeen said: "When they realised the car was not stolen, they apologised. The police said they had had a report of a stolen car from one of the traffic wardens." Mr Ramdeen has written to parking control contractors Control Plus and the county council demanding an apology and compensation.
He said: "I would like to know if it is their policy to treat all people who disarm their car alarms and drive away like this or just people who are of an ethnic minority." But council parking manager John Crossley said the attendant had given a different version of the incident and had been well-intentioned, having seen a suspicious incident.
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