David Baker, aged 39, from Stourbridge, has been given a £75 fine and the threat of court action.
He has accused Dudley Council of "bureaucracy gone mad" for branding him a fly-tipper.
Mr Baker used to take the streets of Stourbridge armed with bags from the council and a litter picker to clear rubbish.
Bosses stopped supplying bags 18 months ago, forcing him to use carrier bags to collect rubbish and put it in street litter bins.
But now officials claim he has dumped bags full of crisp packets, pizza boxes and other litter in the bins.
Today Mr Baker, of Coventry Street, Stourbridge, hit back at the council's actions calling the issue "bureaucracy gone mad".
"I think that it is completely outrageous that I should be fined for actually cleaning rubbish off the streets," said Mr Baker, who volunteers as part of the team working on the annual Stourbridge In Bloom entry.
"How can people who actually want to put rubbish in the bin be fined? To claim that what I put in the bin amounts to flytipping is crazy."
Environment boss Councillor Tracy Wood said: "Our enforcement officers issued a fixed penalty fine to Mr Baker in Stourbridge, after they found his domestic waste and letters in the litter bin on a number of occasions. However, we will be reviewing the fine and speaking to Mr Baker directly to discuss it."
Mr Baker said he may have put a couple of junk mail letters in the bin on his way out of the house on occasion but did not put waste from his home into the bins.
By Andrew Turton