Summary: Mrs X complains the Council wrongly passed her council tax account to enforcement agents and gave them an incorrect address for her. We find fault with the Council for failing to fully address her complaint at the first complaint stage, and for using an unmonitored email address on council tax bills and reminders.

The complaint

1. Mrs X sold her property and informed the Council by email.
2. She complains the Council wrongly passed her council tax account to enforcement agents and gave them an incorrect address for her.
3. She had to refund her ex-husband who paid the debt collectors, assuming the debt was his.
4. This caused frustration for Mrs X, having to contact the Council again to get a breakdown of her final bill. She also spent time and trouble to pursue a complaint.
5. Mrs X seeks a refund from the Council and for it to ensure this issue has not affected her credit rating.

Back to top

The Ombudsman’s role and powers

6. 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)
7. 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)

Back to top

How I considered this complaint

8. I reviewed the information Mrs X provided, and reviewed the relevant law and guidance.
9. Mrs X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

Back to top

What I found

Relevant law and guidance

10. Council tax is a combination of tax on the value of a property and a tax on individuals that is payable by the occupier or owner.
11. The council tax bill for the year is due on 1st April. A council will usually collect payment through monthly instalments. If any instalment is missed the council will send the liable person a reminder. If a payment is still not made or a further payment missed, then the entire outstanding balance will be due (that is the full amount for the rest of the year).
12. To use the various powers available to it to recover unpaid council tax, a council has to apply to the Magistrates Court for a liability order against those it believes are liable. Once a council has obtained a liability order it can take recovery action.
13. A liability order gives councils legal powers to take enforcement action to collect the money owed, which can include using enforcement agents or ‘bailiffs’. Enforcement agents will add their costs to the debt.

What happened

14. Mrs X sold her property in 2020. It was vacant for over three months while the sale was going through.
15. Mrs X emailed the Council to inform it of the sale, and asked what would happen next.
16. In May 2022 Mrs X’s ex-husband received letters from debt collectors and he paid a bill of around £1000 for outstanding council tax, as he assumed the debt was his. Mrs X refunded the money to him and wrote to the Council requesting a full breakdown of the charges.
17. The Council said it updated records to show Mrs X was liable for the property until 6 November 2020. It said it had received £723.12 from the enforcement agents on 11 May so it will refund Mrs X £324.04.
18. Mrs X thought she was due a refund of £850 so she emailed the Council again. The Council gave a breakdown showing the period Mrs X is liable for and any discounts applied.
19. The Council say it had no point of contact for Mrs X and it got the address of her ex-husband from the tenant of the property she sold.
20. Mrs X sent the Council a copy of the email she sent in 2020, giving her contact details. She wanted the enforcement agent fee’s back and confirmation that this would not affect her credit score so she made a complaint to the Council in August 2022.
21. The Council responded in September and said the email address she used was an account no longer monitored and there is no record of receiving it. It wrote to Mrs X at the original property address but updated this once it received details of the new owner.
22. Due to having no contact from Mrs X, the Council issued a summons and it went to debt recovery agents. The Council did not uphold her complaint. It also sent the refund form to her ex-husband as he paid the enforcement agents.
23. Mrs X sent a stage two complaint in September explaining the contact email she used was printed on the top right hand corner of the council tax reminder notice. She explained she only lived at that address for five weeks, five years ago, and it was not even her last known address as she has paid council tax for two different properties in that five year period. Further the Council should have sent her the refund form as she has repaid her ex-husband.
24. The stage two response from the Council in October said it appreciated Mrs X did tell the Council the property was sold in November 2020 and apologised that it did not reach the relevant department. The tenant in the property she sold gave the Council the ex-husbands address previously, which is why it wrote to her there. It has now updated her address.
25. However it is satisfied the correct procedure was followed in sending debt recovery agents so the fees will not be returned. The Council confirmed this would not affect Mrs X’s credit score and apologised that she had cause to complain.
26. Mrs X remained unsatisfied with the Council’s response so she brought her complaint to the Ombudsman.
27. Since contacting the Ombudsman the Council have written to us saying it will revisit the complaint. A senior advisor has spoken to Mrs X confirming her credit score will not be affected, and it will issue the credit amount direct to her.

Analysis

28. The Government Guidance on Collecting Council Tax Arrears says, where a payment is overdue, a bill payer should receive at least three statutory communications before further action is taken.
29. In the complaint response the Council say it is satisfied the correct procedure was followed so I cannot find fault with the Council issuing a summons and instructing debt recovery agents.
30. The letters were not returned to the Council, and Mrs X could have also chased the Council for a response to her email sent in 2020.
31. Mrs X emailed the Council to say she was no longer the owner of the property. The email address should not be on council tax correspondence if it is not monitored. This is fault by the Council and I recommend a service improvement to ensure this does not happen again.
32. The stage one complaint response from the Council does not fully address Mrs X’s complaint. However the Council have said it will revisit the complaint and has been in touch with Mrs X following our involvement.

Back to top

Agreed action

33. Within one month of the final decision, the Council will:
• Refund Mrs X the outstanding £324.04;
• Pay Mrs X £100 for her time and trouble in bringing her complaint to the Council and the Ombudsman;
• Ensure a correct email address is on all council tax bills and reminders.
34. The Council should provide us with evidence it has complied with the above actions.

Back to top

Final decision

35. I find fault with the Council for failing to fully address Mrs X’s complaint, and for not updating the correct email address on council tax bills and reminders.

Back to top

Investigator's decision on behalf of the Ombudsman