Summary: Mrs X complained bailiffs acting for the Council requested a monthly payment which was not affordable, for unpaid council tax She said her vulnerability had not been properly considered. The Ombudsman does not find fault in the action taken by the bailiffs, acting on behalf of the Council.

The complaint

1. The complainant, Mrs X, complains bailiffs acting for the Council are requesting a monthly payment which is not affordable. Mrs X said her vulnerability has not been properly considered and the action has caused her significant distress and worry.

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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 an organisation’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 considered the information provided by Mrs X and the Council.
5. Mrs X and the Council had an opportunity to comment on my draft decision. I considered their comments before making my final decision.

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What I found

6. The Local Government Finance Act 1992 gives local authorities the power to levy and collect a dwelling tax. This is known as council tax. The main legislation concerned with the collection and recovery of council tax is the Council Tax (Administration and Enforcement) Regulations 1992 (as amended).
7. Before a council can pursue someone for council tax it must send a demand. If a taxpayer misses a payment, a council must issue at least one reminder notice before issuing a summons for a liability order in the magistrates court. They can seek to recover payment of the sum in the liability order by various means.
8. A liability order gives a council legal powers to take enforcement action to collect the money owed. The Council can add the costs of obtaining the order to the person’s debt.
9. If someone does not pay the Council tax, and the costs, the Council can ask bailiffs (also referred to as enforcement agents) to collect the debts. Bailiffs charge fees which also must be paid.
10. The law does not define what a vulnerable person is. The Ministry of Justice has issued ‘Taking Control of Goods: National Standards’ (“the Standards”) which set out the responsibilities of creditors and bailiffs. The Standards say -

• Creditors should remember that bailiffs act on their behalf and they are accountable for the bailiff’s actions. They must consider if the debtor is vulnerable and if so, agree clear protocols governing the approach the bailiff should take. Examples of a vulnerable debtor include someone who is seriously ill or disabled.

Bailiffs must not:

• Falsely imply action will be taken when it cannot legally be taken
• Falsely imply a course of action will ensue before it is possible to know whether such action would be permissible
• Falsely imply action has been taken when it has not
• Falsely imply a debtor refusing entry to a property is an offence

11. If a bailiff identifies a vulnerable debtor, they should alert the creditor and ensure they act in accordance with all relevant legislation. Bailiffs should be aware that vulnerability may not be immediately obvious.
12. Schedule 12 of the Taking Control of Goods (Fees) Regulations 2014 states where the debtor is a vulnerable person, the fee or fees due for the enforcement and any disbursements related to that stage (or stages) are not recoverable unless the enforcement agent has, before proceeding to remove goods which have been taken into control, given the debtor an adequate opportunity to get assistance and advice in relation to the exercise of the enforcement power.

The Council’s vulnerable person protocol

13. The protocol sets out the Council’s strategy to proactively help officers identify vulnerable or potentially vulnerable persons. It says a vulnerable person is a person who, by characteristics and/or circumstances, is unable to act or respond appropriately to the normal collection procedures, or for the same reason is unreasonably affected by them. One of the characteristics or circumstances it identifies as something that may lead to identifying a person as vulnerable is mental health (including personality disorders).
14. Before the Council instruct its bailiffs, each account is checked by a case manager to establish any known vulnerabilities. If it identifies a customer as vulnerable before instructing bailiffs, the Council will not refer their account to it unless the Council considers the customer’s case demonstrates a “won’t pay” attitude in contrast to “can’t pay”.
15. If the Council identifies a customer as vulnerable after instructing bailiffs, the Council will recall the customer’s account unless it considers the customer’s case demonstrates a “won’t pay” attitude in contrast to “can’t pay”.
16. In all cases where the Council consider a customer to be vulnerable, it will allocate the matter to a case manager who will attempt to agree a special arrangement to allow payment of the debt over a longer period. Where possible, all current year debts should be recovered within the financial year. Arrears from previous years may be paid at a lesser amount over an agreed period to allow payment of council tax for the current year to take priority.

What did happen?

17. This section sets out the key events in this case and is not intended to be a detailed chronology.
18. Mrs X had outstanding council tax. As the Council took action as described in paragraph 7, the accounts were passed to bailiffs in 2021.
19. Mrs X told the bailiffs in August 2021 she had mental health problems and asked it to set up a payment arrangement. The bailiffs said it had noted on her account she was vulnerable and asked her to provide evidence of this within the next seven days so her case could be overseen by its welfare team. It said the minimum payment required was £351 per month and attached a list of available payment methods.
20. The following month, Mrs X told the Council she had depression and anxiety. She said she could afford to pay £30 per week.
21. The bailiffs said moving forward, its welfare team would oversee her account. But it said in order for this to remain the case, it needed evidence of her circumstances. It said as it had limited time to collect the balance, it could not except £30 per week and said the minimum arrangement it could agree to was £84 per week.
22. Mrs X provided the bailiffs with pictures of medication she was taking. She asked if she could pay through an attachment of earnings. As she said she could not afford the amount requested, the bailiffs asked her to complete a financial statement, which she completed in October 2021.
23. The bailiffs said there were areas of Mrs X’s expenditure it felt could be reviewed in order to clear the debt. It said the minimum payment it could except was £60 per week. Mrs X said this was unreasonable.
24. Mrs X complained to the Council in October 2021. She said she was vulnerable and said the bailiffs were being unreasonable. The Council advised Mrs X to seek independent legal advice and provided her with details. It said it had put a hold on Mrs X’s account which it had extended for a further 30 days whilst she sought advice. It said if Mrs X remains dissatisfied, she could complain to us.
25. The following month, Mrs X said she had arranged a payment plan.
26. In July 2022, Mrs X asked the bailiffs not to send anyone to her address. She said she was vulnerable, and this matter was making her symptoms worse. She said it would result in her harming herself or ultimately killing herself.
27. The bailiffs asked Mrs X to contact them in the next seven days. Mrs X told bailiffs she had contacted the Council to discuss an arrangement.
28. In August and October 2022, Mrs X asked the Council to reopen the complaint she made in 2021. The Council reiterated its previous responses.
29. The bailiffs sent Mrs X a further financial statement to complete, which she completed in September 2022.
30. Mrs X told the Council she could not mentally cope. She said she had paid £50 and would continue to, weekly. The Council asked Mrs X to contact the bailiffs to provide it with proof of her vulnerability.
31. On 5 September 2022, the bailiffs placed a breathing space hold on Mrs X’s account until 23 October 2022. It asked her to contact it once this period had ended to discuss repayment arrangements.
32. Mrs X provided the Council with a sick note in October 2022 to prove she could not work.
33. In the same month, the bailiffs told Mrs X it could arrange for her to pay £220 every 31 days which Mrs X said she could not afford.
34. The following month, the bailiffs arranged for Mrs X to pay £33 per week.

Analysis

35. Mrs X told the bailiffs in August 2021 she had mental health problems. The bailiffs said its welfare team would oversee the account and Mrs X provided the bailiffs with pictures of medication she was taking. In response to this, no visits were made to Mrs X’s property and a lower payment arrangement was offered. This is in line with the Council’s vulnerable person protocol.
36. The bailiffs requested Mrs X complete a financial statement. But it said as there were areas of Mrs X’s expenditure it felt could be reviewed in order to clear the debt, it would except a minimum payment of £60 per week. In response to our enquires, the Council said the income and expenditure form provided by Mrs X detailed £110 per month for council tax. But the Council said this was not being paid. I am therefore satisfied the bailiffs considered the information provided to it.
37. Mrs X complained to the Council in October 2021 and stated she was vulnerable. The Council agreed to put a hold on her account and agreed to extend this for a further 30 days to allow Mrs X time to seek legal independent advice. It advised Mrs X if she remained dissatisfied, to complain to us. Mrs X asked the Council in August and October 2022 to reopen her complaint. The Council denied this request and reiterated its previous responses. Mrs X then complained to us in October 2022. I find no fault with the Council’s actions. It correctly considered Mrs X’s complaint in 2021 under its stage one and stage two complaints process. It provided her with the Ombudsman’s details. If Mrs X remained dissatisfied with the Council’s response, the next stage would have been to complain to us.
38. In July 2022, Mrs X told the bailiffs she was vulnerable, and their actions were making her symptoms worse. She said this could result in her harming herself or ultimately killing herself. The bailiffs reiterated schedule 12 of the Taking Control of Goods (Fees) Regulations 2014 which says where the debtor is a vulnerable person, the fee or fees due for the enforcement stage and any disbursements related to that stage are not recoverable unless the bailiff has, before proceeding to remove goods which have been taken into control, given the debtor an adequate opportunity to get assistance and advice in relation to the exercise of the enforcement power. The bailiffs asked Mrs X to call it in seven days. I am satisfied the bailiffs and the Council adhered to schedule 12.

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Final decision

39. I have completed my investigation on the basis there was no fault in the Council’s actions.

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Investigator's decision on behalf of the Ombudsman