Summary: Mr X complains about recovery action taken by the Council for an unpaid penalty charge notice. He says his request for a payment arrangement was not properly considered. The Ombudsman has found fault by the Council causing Mr X injustice. To remedy this, the Council has agreed to remove the enforcement fee from the debt and agree a payment arrangement for the balance.

The complaint

1. The complainant, who I am calling Mr X, complains about the recovery action taken by the Council for an unpaid penalty charge notice. He says the Council’s enforcement agents did not properly consider his requests for an affordable payment arrangement before escalating recovery action, adding further costs to the debt.

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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. Where an individual, organisation or private company is providing services on behalf of a council, we can investigate complaints about the actions of these providers. (Local Government Act 1974, section 25(7), as amended)
4. If we are satisfied with a council’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 have spoken to Mr X and read the information he and the Council have provided about the complaint.
6. I invited Mr X and the Council to comment on this draft decision. I considered their responses before making my final decision.

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What I found

Enforcement process for unpaid penalty charge notices

7. A penalty charge notice (PCN) will be issued by a council where it is believed a motorist has committed a traffic offence. If the motorist does not pay or make representations the council can take recovery action using procedures set out in the Traffic Management Act 2004 and associated regulations. Councils and motorists must follow these procedures.
8. A council will first issue a charge certificate which increases the debt by 50%. If this remains unpaid after 14 days, the council can register it with the Traffic Enforcement Centre (TEC) adding further costs. If the debt is still unpaid after notice has been given to the motorist, the council can apply to TEC for a warrant which is then passed to an enforcement agent.
9. The Taking of Control of Goods (Fees) Regulations 2014 allow an enforcement agent to add a compliance fee of £75 to the debt when they receive the warrant. And an enforcement fee of £235 can be added at the start of the enforcement stage; the first visit.

What happened

10. The Council issued a PCN to Mr X in February 2019. Mr X did not respond or make payment. The debt remained unpaid and, after sending the appropriate notices, the Council registered the case with the TEC. In August 2019 it obtained a warrant for the debt, which was now £113.
11. The Council passed the warrant to enforcement agents. They sent notice of enforcement to Mr X on 30 August. The debt had increased to £188, including the compliance fee of £75. The notice asked Mr X to pay this by 8 September. It also stated if payment was not made or a payment arrangement not agreed, an enforcement fee of £235 could be added. The notice included the enforcement agents’ contact details and information about free debt advice organisations.
12. Mr X did not respond. The enforcement agents wrote to him again on 9 September. They said the enforcement fee would not be added if he paid the debt within the next seven days. And they would hold off passing the case for enforcement to give him time to do this.
13. Mr X contacted the enforcement agents on 28 October:

• He says he offered to pay the debt by monthly instalments of £20 and explained his financial difficulties. His offer was not accepted and he was asked to pay £40 a month which he could not afford.
• The enforcement agents’ records say Mr X offered £20 a month. He was advised to make payments to reduce the balance but when they made a visit the debt would go up to £423.

14. The enforcement agents say they visited Mr X’s home on 6 January 2020 and, as there was no answer, left a letter for him.
15. Mr X contacted the enforcement agents on 7 January:

• He says he was now able to increase his offer to £40 a month as he had repaid another debt. But he was told the debt had increased to £423 following their visit.
• The enforcement agents’ records say Mr X complained he had not been told about the enforcement fee in October or that he could make payments to reduce his balance. Mr X said he could offer more now as he had repaid another debt. When asked why it had taken him two months to contact them again, Mr X said there was not point until he was able to offer more.

16. Mr X then paid £113 directly to the Council and contacted the enforcement agents again. Their records say he was unhappy they had refused to take his money in October. The enforcement agents said they had never refused payment. They had offered £40 a month which he had refused and they had made him aware of costs.
17. Mr X complained to the Council about the way the enforcement agents had dealt with him and the further costs added to the debt.
18. In February the enforcement agents sent Mr X forms to complete about his financial circumstances. He returned the forms and offered £10 a month.
19. The Council agreed to accept this offer. Mr X has not yet started making these payments as he disputes the enforcement fee of £235 added to the debt.

Analysis – was there fault by the Council causing injustice

20. Mr X did not respond to the PCN and I do not consider there was fault by the Council in registering the debt with the TEC, obtaining a warrant and passing this to its enforcement agents.
21. And the notices sent by the enforcement agents make it clear an enforcement fee of £235 may be added if payment is not made or a payment arrangement agreed and include their contact details. I do not find any fault with the initial contact by the enforcement agents.
22. There is some disagreement between Mr X and the enforcement agents about what was said when he contacted it on 28 October. The Council says it believes they discussed the possibility of an affordable payment arrangement with Mr X although the case notes do not reflect this.
23. But both Mr X and the enforcement agents’ records confirm he offered to pay the debt by monthly instalments of £20.
24. The enforcement agents’ website says payment arrangements will be considered and determined by their guidelines. And the notices sent to Mr X confirm enforcement action can be avoided if a payment arrangement is agreed.
25. My view is the enforcement agents should have tried to agree a payment arrangement with Mr X following their contact with him on 28 October. He had offered to pay the debt by monthly instalments of £20. This appears to have been rejected without any consideration of his financial circumstances. If the discussions on the phone had become difficult, the enforcement agents could have written to him asking for details of his finances. And then have looked at his circumstances and decided whether his offer was appropriate. This is what they did in February 2020, after Mr X had complained to the Council.
26. I consider it was fault by the Council’s enforcement agents not to explore the possibility of accepting Mr X’s offer and agreeing an arrangement with him in October 2019.
27. This fault has caused Mr X injustice. The Council has told us had a payment arrangement had been agreed in October and maintained by Mr X, the enforcement stage fee of £235 would not have been added to the debt.
28. The Council has also told us it will waive the fee of £235 and agree Mr X can pay the remaining balance of £75 by monthly instalments of £10.

Agreed action

29. The Council is responsible for the actions of its enforcement agents. To remedy the injustice caused by the above fault, the Council had agreed it will, within one month of our final decision:

• remove the fee of £235 from Mr X’s penalty charge notice debt.
• allow him to pay the remaining balance of £75 by monthly instalments of £10, as it has offered to do.

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Final decision

30. I have found fault by the Council causing Mr X injustice. I have completed my investigation on the basis the Council will take the above action as a suitable way to remedy the injustice.

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Investigator's decision on behalf of the Ombudsman