Reflections by the Local Government Ombudsman Andrew Hobley, Assessment Team Leader
Outline of Programme Transforming the Local Government Ombudsman Local taxation complaints Complaints about bailiffs Complaints about Enforcement Agents
LGOAT Investigation Coventry Ombudsman Investigation London Ombudsman Investigation York Ombudsman
ONE OMBUDSMAN INTAKE 20,200 contacts 12,000 complaints ASSESSMENT 5 teams 60% of complaints 40% of complaints Not for Investigation INVESTIGATION 8 teams
Taxation and benefit complaints 2012/13 Local welfare payments, 5 Business rates, 64 Housing benefit, 432 Council tax support, 18 Council tax benefit, 83 Council tax, 682
Council tax and NNDR decisions for cases received in 2013/14 Fault and remedied, 70 No or insufficent injus6ce, 52 Out of jurisdic6on, 331 No or insufficent fault, 130 Other reason, 70
Common Council faults Failure to consider potential vulnerability Not notifying of appeal rights over liability Incorrect payment allocation and not providing clear account statements No consideration of impact of Council errors Not exercising discretion or holding a fixed view Not following policy
Not checking when debtor traced LO granted against Resident F M, who later moves; Tracing agents find address of a Mr F M; bailiffs sent. Mr M tells bailiffs and Council not me and provides proof; 60 days hold which expires and bailiffs return 400 for unjustified bailiff visits; 100 time and trouble; in future send copy bills with covering letter and 14 days to contact or pay
Old debts 1999 - Ms X moves with no forwarding address leaving debt of 135 including court costs, Council took no further action; 2011 - Council decides to recover historic debts; Traced Ms X, sent bill, bailiffs text and visit; Ms X tells Council had mental health problem debt written off. Policy reviewed - people not expected to recall or keep information about old debts, not cost effective to pursue small amounts.
Payment arrangements Mr Z unemployed and owed 70 payable by two 35 installments; Sent reminder; Council agreed 12 p/m AFTER LO granted with 74 costs, so doubling debt; Policy says LO will be obtained; also referred to accepting offers at DWP deduction rate if on benefit Council said in practice officers have discretion; Fault for policy not to refer to discretion, fault in way considered Mr Z s offer as on benefit; Council wrote off LO costs and reconsidered policy.
What can go wrong will Complicated CTB claim by W a vulnerable person with authorized representative B. Council managed to Write to W, not B, then cancelled claim; Regularly ignored correspondence from B including a benefit review request; Scanned documents to wrong claim; Sent bailiffs with LOs with W and B s addresses; And..
Bailiffs kept trying to recover from B s address despite being told situation; Bailiffs levied on car not belonging to W or B; Council claimed replied to letters when had not. Remedy 1,100 to B and 850 to W Produce anti poverty and vulnerable person strategy Review internal document handling
Cases not investigated Charging empty property premiums; Council withdrawing recovery action when it found out liability incorrect; Not paying interest on refund after band reduction; Council holding action when it realised not advised complainant of appeal rights; Using name of area of streets rather than ward in address; Dispute over 37.35 arrears
Bailiffs Bailiffs charges not in accordance with SLA agreed with Council; incorrect charges refunded. Seizing Mrs X s car on two occasions for Mr X s debts on properties he owned and not making any ownership checks when told not his car; 250 for distress Bailiff removed third party goods while owner away rather than taking walking possession; 750 for distress Also cases not investigated where no fault with bailiff actions.
Enforcement agents Local Government Act 1974 Section 25 (6) Subsection (7) has effect where an authority to which this Part of this Act applies exercise a function entirely or partly by means of an arrangement with another person (7) For the purposes of this Part of this Act, action taken by or on behalf of the other person in carrying out the arrangement shall be treated as action taken on behalf of the authority, and in the exercise of the authority s function
Enforcement agents before instructing Do you send a pre-agent warning letter For council tax? For business rates? Have you liaised with parking enforcement over any EA policy? Reissuing warrants to a new EA why would you consider before doing this?
Enforcement agents your responsibility A local authority can outsource the service, but not outsource the accountability. As your agents you are responsible for their actions Checked training and qualifications? Have you told then What actions required at compliance stage? When to move to enforcement? When to remove goods? Restrictions on arrangements to pay? Clear about fees they will charge? How monitor actions and charges?
Enforcement agents court or LGO? Wide rights for debtors to challenge agents in court including Where controlled or exempt goods are claimed by a third party Disputes about the of fees or disbursements including Claims debt paid before the fees charged; multiple fees on multiple warrants; recovering fees from vulnerable debtors and the calculation of the percentage fee.
Local Government Act 1974 Section 26(6) (c) A Local Commissioner shall not conduct an investigation under this Part of this Act in respect of any of the following matters, that is to say,... (c) any action in respect of which the person affected has or had a remedy by way of proceedings in any court of law: Provided that a Local Commissioner may conduct an investigation notwithstanding the existence of such a right or remedy if satisfied that in the particular circumstances it is not reasonable to expect the person affected to resort or have resorted to it.
Court or LGO? The courts determine the law We determine good local authority administration R v Bristol City Magistrates Court etc 1991 - magistrates may make a liability order where there was an outstanding claim for community charge benefit Ombudsman Reports 98/A/04300 ('Lane' v Ealing) and 99/A/02636 ('Orwell' v Lambeth) Councils should not seek a liability order while a claim for council tax benefit is outstanding and the reason for the delay in dealing with the claim is not attributable to the claimant.
Court or LGO? Pre 6 April 2014 council tax liability orders multiple 1 st and 2 nd letters fees not unlawful Bailiff charges eight first visit fees, eight second visit fees and eight levy fees Ombudsman Report 11 007 684 Smith v Blaby Multiple fees for levy on same goods unlawful 340 fees for two visits by one bailiff disproportionate
Enforcement agents court or LGO? We may say debtor should use their alternative remedy - but we have discretion. One reason not to use discretion may be - dispute over the interpretation of the law and clarification by the court would be necessary. Reasons to exercise discretion may be - Clear breach of law; Personal circumstances of debtor make court action inappropriate EACH CASE CONSIDERED ON ITS MERITS
Enforcement agents and complaints Councils are responsible for the actions of their agents. The Council needs to exercise more customer care than simply saying the bailiffs can legally do what they did. (Case 13002131) EAs should have own complaint process reasonable to deal with complaint about their action first themselves, includes responding to any points about behaviour of agent.
Enforcement agents and complaints After that EA should direct complainant to go Council s process at stage 2 Allows unified response with any other issues; Council can consider EA s actions; Can make own enquires of EA; Consider evidence and come to its own view. Then direct complaint to us if disatisfied
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