Summary: Mr B complained about the Council’s failure to refund a direct debit payment taking in error from his bank account. We cannot find fault with the actions of the Council and suggest Mr B complains to his bank.

The complaint

1. Mr B complains that Folkestone & Hythe District Council (the Council) wrongly set up a direct debit from his bank account rather than his mother’s account, then failed to refund the money to his bank account.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

4. I have considered the complaint and the documents provided by the complainant, made enquiries of the Council and considered the comments and documents the Council provided. I have written to Mr B and the Council with my draft decision.

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What I found

5. In March 2019 Mr B completed an online form requesting payment of arrears on his mother’s council tax account by direct debit. On the form he put his mother’s account reference but his address. Because of this mismatch the direct debit form was not processed automatically but checked manually. The Council then incorrectly set up the direct debit to come out of Mr B’s bank account rather than his mother’s.
6. The first payment of £114.40 was taken on 1 May 2019. Mr B queried the payment with the bank and asked his bank to cancel the direct debit and reclaim the money from the Council. On 4 May 2019 the Council received the form from the bank requesting a refund of the payment. The Council sent the payment back to the bank.
7. In June 2019 Mr B complained to the Council that he had not received the payment. The Council replied suggesting he contact the bank as the payment had been refunded to the bank. Mr B escalated his complaint. In July 2019 the Council apologised for the error with the direct debit and explained it had taken steps to prevent the problem recurring. The Council explained it sent the payment back to the bank who should then refund Mr B.
8. Mr B complained to the Ombudsman in August 2019 as he had not received the money. In response to my enquiries, the Council has provided a copy of Direct Debit Indemnity Claim Advice Report for 3 May 2019 which it says shows the payment was refunded to the bank on 7 May 2019.
9. Mr B says he contacted his bank in May 2019, but it had not received the money. He has provided a copy of his bank statement from 1 to 9 May 2019 which does not show a refund of the money.

Analysis

10. The Council has apologised for the error in setting up the direct debit and taken steps to put matters right. It advised Mr B to claim the money back via the direct debit indemnity scheme which he promptly did and has provided evidence that it repaid the money to the bank on 7 May 2019.
11. I accept that Mr B has not received the money but there is no evidence this is due to fault by the Council. I suggest Mr B complains to his bank providing a copy of the indemnity claim advice report provided by the Council to get a fuller picture of what has happened to the money.

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Final decision

12. I have completed my investigation into this complaint as I am unable to find fault causing injustice in the actions of the Council towards Mr B.

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Investigator's decision on behalf of the Ombudsman