Summary: We will not investigate this complaint about the Council mistakenly cancelling Mr X’s council tax direct debit. At my invitation, the Council has agreed a suitable remedy for the injustice caused.

The complaint

1. Mr X complains the Council wrongly closed his council tax account and stopped taking his direct debit for council tax payments. He says this caused frustration and anxiety, worsened his health problems, he went to time and trouble and fears financial difficulty from having to repay arrears.

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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 provide a free service but must use public money carefully. We may decide not to start or continue with an investigation if we are satisfied with the actions an organisation has taken or proposes to take. (Local Government Act 1974, section 24A(7), as amended)
3. The law says we cannot normally investigate a complaint when someone could take the matter to court. However, we may decide to investigate if we consider it would be unreasonable to expect the person to go to court. (Local Government Act 1974, section 26(6)(c), as amended)

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How I considered this complaint

4. I considered information provided by the complainant. I considered the Ombudsman’s Assessment Code. I invited the Council to provide a remedy.

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My assessment

5. The Council meant to close the council tax account of a different, unconnected person. Instead, it mistakenly closed Mr X’s account and stopped collecting his direct debit. The Council accepts that was fault. Around ten months passed before the Council noticed the error. I understand Mr X did not notice either.
6. The Council was then not as clear as it should have been about the need for Mr X to set up a new direct debit, rather than expect the old one to resume. That delayed Mr X resuming his council tax payments.
7. Mr X is paying the current council tax, which is up to date. The Council wants him to pay arrears of £1,440 from the period before it noticed the error.
8. The Council offered to reduce the debt by £50 in recognition of its fault. It will review procedures to prevent a similar error in future.
9. The alleged effect on Mr X’s health is really a claim of personal injury. The courts can consider that, so the restriction in paragraph 3 applies to this point. Liability and compensation for personal injury are not straightforward matters legally. It is more appropriate for the courts than the Ombudsman to consider them. So it would be reasonable for Mr X to go to court if he wants a decision on this point. However, I have considered the other claimed impacts on Mr X.
10. The problem originated with the Council’s fault. However, the Council was not solely responsible for such large arrears accruing before the problem was noticed. That is because there is reasonably some onus on a billpayer to check their bank account and notice if something is amiss. So I have given some weight to Mr X’s failure to notice council tax payments were not being collected and him therefore having the benefit of the money in the meantime. While that mitigates some injustice resulting from the Council’s fault, it does not remove it altogether.
11. The Council’s faults caused Mr X avoidable frustration, anxiety and time and trouble. The Council’s offer of £50 is not enough remedy for that.
12. Mr X wants the Council to waive the arrears. That would be disproportionate in the circumstances. Mr X owes the council tax. While it was not his fault the Council stopped collecting his payments, he had the benefit of the £1,440 in the period when no council tax was paid.

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Agreed action

13. At my invitation, the Council has agreed to:
1. Pay Mr X £150, which it can offset against the debt if it wishes, within one month of today. This is a symbolic payment, not compensation in the way the courts might award. It is enough and in line with the Ombudsman’s guidance on remedies as a recognition of the frustration and anxiety caused by the Council’s faults with the council tax account and any effort in communicating with the Council afterwards, including through the complaint procedure.
2. Agree an affordable repayment arrangement with Mr X. The Council should allow at least as long as the period over which the debt built up for Mr X to pay if he wishes. This is the minimum period; it might be that Mr X should repay over a considerably longer period if that is what transpires to be affordable. The Council should agree the repayment arrangement with Mr X within two months of today. This is a satisfactory remedy for any anxiety about the arrears and any financial impact of repaying the arrears, especially bearing in mind Mr X had a period of not paying council tax.

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Final decision

14. We will not investigate Mr X’s complaint because the Council has now agreed a suitable remedy for the injustice its fault caused.

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Investigator's decision on behalf of the Ombudsman