Summary: We will not investigate this complaint about added charges in connection with debt recovery action by agents of the Council. This is because the enforcement fees and charges were entitled to be added as they are the result of the complainant’s non-compliance with a court issued liability order for unpaid council tax.

The complaint

1. The complainant (Charity Y) complains about debt recovery action by agencies acting on behalf of the Council in respect of unpaid council tax for which it holds a court issued liability order. Chairty Y also complaints about additional enforcement charges being unfairly applied to the balance.
2. In summary, Charity Y says the Council’s agents were unfairly and relentlessly perused for the debt and that enforcement charges were unjustified given the outstanding council tax amount has now been paid. As a desired outcome, Chairty Y wants the Council to write off approximately £250 which relate to enforcement charges.

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The Ombudsman’s role and powers

3. We investigate 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 or continue an investigation if we decide there is not enough evidence of fault. (Local Government Act 1974, section 24A(6), as amended, section 34(B)).
4. We cannot by law investigate a complaint about the commencement of legal proceedings or what happened in court. (Local Government Act 1974, Schedule 5/5A, paragraph 1/3, as amended).

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How I considered this complaint

5. I considered information provided by the complainant and the Council. I also considered the Ombudsman’s Assessment Code.

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My assessment

6. The Council issued Charity Y with demands for unpaid council tax in mid-2022 which were disputed. The Council then commenced liability proceedings in the magistrates’ court which found Charity Y was legally liable for an amount in unpaid council tax. A liability order was issued in August 2022.
7. The Council wrote to Charity Y in November 2022 to request settlement of the arrears in compliance with the court issued liability order. The Council neither received payment or a response. The Council was therefore justified and within its rights to take enforcement action in respect of debts that Charity Y was found to be liable for. We have no jurisdiction to question to amount of unpaid council tax as this issue has been subject to legal proceedings. I note Charity Y it has been making payments in instalments since the liability order being issued, but as the Council has already explained to it, any person or body liable for council tax loses the right to pay by instalments once a liability order has been made. The amount becomes payment in full.
8. The enforcement agents added a £75 fee in respect of the recovery action which it is entitled to charge. The debt account which still had a balance was then passed back to the Council by the enforcement agents. The Council then passed the debt account to new enforcement agents in September 2023. The agents added a £75 fee as it is entitled to do and requested payment of the outstanding balance which was approximately £250. The agents requested payment be made by Charity Y within seven days. As payment was not made, the agents applied enforcement charges of £235 which is still outstanding. The original council tax payments were paid were cleared in December 2023.
9. The enforcement fees and charges all relate to Charity Y’s failure to make payment of the debt in compliance with a court order. I recognise that Charity Y specifically refers to an enforcement charge of £235 being outstanding despite that the original council tax balance being cleared. However, this is not a relevant point as the final enforcement charge was added in December 2023 following payment demands since September 2023 while there was still an outstanding balance. The amount was not paid in time and as required. I have not found any evidence of fault by the Council’s agents acting on its behalf in respect of the added enforcement fees and charges.

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Final decision

10. We will not investigate this complaint because the enforcement fees and charges were entitled to be added and are the result of the non-compliance with a court issued liability order.

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Investigator's decision on behalf of the Ombudsman