Council Tax Direct Debit Problem

surfamakikomi

Hi All,

In October i moved into a new area and set up a direct debit with the council to pay the council tax. I had the option of either paying by 1 , 10 or 12 payments. I choose to make 10 payments sent the form and though nothing of it. I had a letter back form the council saying the total amount was £434 (from oct to april) and that i had choosen to pay by 10 payments. It said the first payment is due on the 1/1/2011. I assumed that it would be 3 or 4 payments and at the time i didnt see anywhere on the form that said what these would be.

I looked at my bank account yesterday and the full amount was debited. This has put me within £50 of the end of my overdraft and has not left me enough money to pay my credit card/ put fuel in the car / buy food.

As the council offices are closed until tomorrow I phoned my bank and told them that i belived the council had taken an incorrect amount. They said that they could do an indemnity claim but i would have to phone the council and talk to them (They didnt say what about) i then have to give my bank the persons name and department and they can proceed with the indemnity.

Today i looked at the original form and about 4 inches across from the 1st payment date of 1/1/2011 is 1 x £434. I am now concerned where i stand as I have ready from other councils that paying by 10 payments runs to january which would mean that the council has taken the full payment as there was only 1 payment left in the plan. If i had known this i would have signed up for 12 payments.

Does anyone have any advice on what to do as I am getting quite worried and stressed now. I currently see my options as:
1. phone the council and tell them of the incorrect payment amount and ask them if i can claim indemnity and pay them the balance in monthly payments every month (not direct debit). I am hoping they agree to this so i can call my bank and get the money back.
2. get a payday loan to cover the missing cash as I dont have brilliant credit history (few missing payments and over limits).

I am worried that the council will tell me that there's nothing they can do and that I am on my own. ANy help and advice will be greatly appreciated.

Cheer

Lee

stclair

When did the Direct Debit leave your account?

Just ask you bank to do an Indemnity on the payment then speak to the council after regarding your payments.

FoggyBrain_2

Hi -- it wouldn't matter how many payments you had signed up for --- all councils require the years council tax to be settled by the end of the financial year .... the 10 or 12 month option only applies when there is a full year to run.

Not what you want to hear -- but the DD indemnity won't help as the DD was drawn according to your instructions, so no error was made on the bank's or council's part.

If you explain the situation to the council they might agree to a refund and allow the balance to be paid over the next few months. Some councils will, in exceptional circumstances, allow a debt to be carried over ( but this does cause them accounting problems), and spread across the next years payments.

When you phone them be polite and friendly (more bees are caught with honey than with vinegar) and stree the hardship case --- hopefully you will get to speak to someone with a brain and a heart

---

oh -- and try to get through to the collections department themselves and not get caught up by some robotic "helpdesk" jobsworth.

surfamakikomi

It left my account on the 4th

HappyMJ

Awkward one this as you didn't read the small print and Feb and March are the "free" months. I'd avoid the payday loan they are a ripoff. I'd ask for a temporary overdraft increase for the next 3 months.

surfamakikomi

FoggyBrain wrote: »

If you explain the situation to the council they might agree to a refund and allow the balance to be paid over the next few months. Some councils will, in exceptional circumstances, allow a debt to be carried over ( but this does cause them accounting problems), and spread across the next years payments.

When you phone them be polite and friendly (more bees are caught with honey than with vinegar) and stree the hardship case --- hopefully you will get to speak to someone with a brain and a heart

---

oh -- and try to get through to the collections department themselves and not get caught up by some robotic "helpdesk" jobsworth.

thanks for the advice , I will definately pay it before april so i am not concerned about asking them to continue it into the next year. I just hope that they will let me get the money back and let me pay the amount off every month.

i think its definately a fingers crossed moment, i also dont think that i could extend my overdraft as it is £2500 at the moment.

CIS

The Statutory Instalments for council tax are for 10 monthly payments from April to January. For each month later than this the number of instalments will drop by one until you reach the minimum number of one instalment from January onwards.

The council have billed you as per the statutory regulations however you may be able to negotiate with them over the amounts in respect of hardship. Ive dealt with similar cases were we have refunded the amount in excess of what the instalment would be if we had given instalements to the end of the year rather than cause undue hardship although there is no requirement for them to return the money you have nothing to lose by asking.

Mikeyorks

As post #4 .......... contact the Council and ask if they can help.

If you invoke the DD Guarantee to get your money back two things can happen. When the Indemnity claim gets to the Council they will probably reject it ..... as they have made no error. So the refund into your account will be withdrawn by your Bank. And - the entitlement to pay your CT by instalments may be withdrawn.

All best avoided ..... see if they can do a partial refund and smooth your finances. Face to face will be better than telephone ...... .