Summary: Mrs X complained the Council did not properly investigate a building company who defrauded her out of a large sum of money. She said this matter caused her emotional distress and financial loss. The Council was not at fault for deciding not to investigate Mrs X’s complaint.

The complaint

1. Mrs X complained the Council failed to properly investigate a building company she contracted to carry out some work on her roof.
2. She said this situation caused her emotional distress and significant financial loss.

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The Ombudsman’s role and powers

3. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word fault to refer to these. We consider whether there was fault in the way an organisation made its decision. If there was no fault in the decision making, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
4. 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

5. I spoke to Mrs X and discussed her view of the complaint.
6. I made enquiries of the Council and considered the information it provided. This included, complaint correspondence shared between Mrs X and the Council and the Council’s public protection enforcement policy.
7. I wrote to Mrs X and the Council with the details of the draft decision. I considered Mrs X’s comments before I wrote the final decision.

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What I found

The Council’s Public protection enforcement policy

8. The Council must follow the Principles of Good Regulation when considering whether to take enforcement action. This means taking action which is proportionate, accountable, consistent, transparent and targeted.
9. The Council’s main objective is to achieve regulatory compliance. Where possible the Council should try to prevent non-compliance from occurring in the first place by providing advice, guidance and information.
10. Sometimes it will be necessary to take formal action against a business including sole traders, corporate bodies or individuals.
11. The Council will generally only take formal action under the following circumstances:
• A defendant has disregarded the law;
• The defendant’s actions have caused or are likely to cause material loss;
• The defendant’s actions have been reckless or seriously negligent; and
• The actions of the defendant are fraudulent.
12. If the Council believes an offence has been committed it has several enforcement actions it can use including, no action, verbal or written advice, seizure, statutory or fixed penalty notice.

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What happened

13. Mrs X paid a local company to replace her conservatory roof in October 2020. The company replaced the roof but left Mrs X says they left the conservatory in an unstable condition. Mrs X paid several large sums of money to the company but was unhappy with the work carried out and felt she had been taken advantage of.
14. Mrs X contacted the Council on the advice of the Citizen’s advice bureau and continued to contact the Council throughout 2020 about the issue. The Council officer she spoke to gave her advice on where to find reputable building companies who could correct the work and how she could pursue the matter in civil court.
15. After Mrs X explained she was concerned the owner of the building company was operating fraudulently the officer visited Mrs X and inspected the work. He also spoke to the owner and asked Mrs X to provide the surveying report, which she was unable to provide. Mrs X told the officer she was happy with the work but did not appreciate the way the owner spoke to her, and she wanted the Council to investigate. After discussing the matter with the owner as well as the contractor. the officer established the issue was a civil matter and not something the Council could help Mrs X with. The Council officer contacted Mrs X and told her this in April and June 2021.
16. Mrs X was unhappy with the Council’s response and complained to the Council in May 2021. She said the Council gave her false hope it would investigate and she wanted the Council to assist her in recouping the money she had spent.
17. The Council wrote to Mrs X on 8 July 2021. The Council did not uphold the majority of Mrs X’s complaint points but conceded its officer could have been clearer when discussing whether the Council would investigate the issue. The Council said it had provided its officers with training to make sure this didn’t happen again in future. The Council concluded the letter stating there was insufficient evidence a criminal matter had occurred and it was open to Mrs X to pursue the matter through the civil courts. The Council offered to assist Mrs X if she wished to take civil action and supported Mrs X in writing a letter to the contractor who carried out the work.
18. In response to the Ombudsman enquiries the Council maintained its decision not to take enforcement action due to insufficient evidence.

Findings

19. The Council is required by its enforcement policy to take action if upon investigation it discovers a defendant has acted fraudulently. The evidence shows the Council officer investigated Mrs X’s claims by visiting her property, and speaking to her and the builder. The officer did not find evidence that showed Mrs X had been defrauded and so he informed Mrs X he would not investigate and she could pursue the matter in court. The Council also offered to assist Mrs X in taking civil action and writing a letter to building company to resolve the matter. The Council’s policy allows the Council to take no action if the evidence shows this is appropriate. There is no fault in the Council’s actions.

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Final decision

20. There was no fault in the Council’s decision not to investigate Mrs X’s complaint. I have completed the investigation.

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Investigator's decision on behalf of the Ombudsman