London Borough of Croydon (22 004 269)

Category : Benefits and tax > Council tax

Decision : Closed after initial enquiries

Decision date : 18 Jul 2022

The Ombudsman's final decision:

Summary: We will not investigate this complaint about council tax fees and a failed direct debit. This is because there is insufficient evidence of fault by the Council.

The complaint

  1. The complainant, whom I refer to as Mr X, complains he has been bullied and charged fees following an error with his direct debit for council tax. Mr X wants an apology and for the Council to cancel the fees.

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The Ombudsman’s role and powers

  1. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide there is not enough evidence of fault to justify investigating. (Local Government Act 1974, section 24A(6))

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How I considered this complaint

  1. I considered information provided by Mr X and the Council. This includes the complaint correspondence. I also considered our Assessment Code and invited Mr X to comment on a draft of this decision.

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My assessment

  1. Mr X’s council tax direct debits for August and September were not paid. The Council issued a new bill in September asking for cash payments. Mr X did not pay the council tax in September or October so the Council issued a summons and then got a liability order. Mr X made a payment arrangement in November which he did not keep and he did not set up a new direct debt. The Council said that if Mr X did not keep to the payment plan then the account would be passed to Enforcement Agents (EA). EA charge fees which have been to be paid in addition to the council tax.
  2. The Council passed the account to the EA on 6 January because Mr X had not maintained the payment plan. The EA sent a notice to Mr X saying he needed to make a payment plan with them. Mr X made some payments to the Council but not to the EA.
  3. The EA visited Mr X on 2 February. At that point he had not paid all the outstanding council tax to either the Council or the EA.
  4. The current situation is that Mr X has paid all the council tax but still owes £308 to the EA in fees.
  5. I will not investigate this complaint because there is insufficient evidence of fault by the Council. The Council issued a new bill in September when the direct debit failed and Mr X had the chance to pay or set up a new direct debit. But, as he did neither, the Council obtained a liability order which allowed it to use EA. But, in the meantime, the Council set up a payment plan which, if Mr X had maintained, would have avoided the referral to the EA and fees.
  6. Mr X did not keep to the plan and neither did he pay the EA as requested. Mr X did not contact the EA to set up a plan so there is no suggestion of fault in the EA taking additional action and charging additional fees. Mr X has paid all the council tax but, as the fees were correctly incurred, he still owes £308. There is no indication of fault in the way the Council processed the account so there is no reason to start an investigation.

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Final decision

  1. We will not investigate this complaint because there is insufficient evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman

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