Local council's 7-year-old debt collection

Tetisheri1975

I hope this is the right bit of the forum to post this on - wasn't sure where else to put it!

Anyway, yesterday my partner received a letter from a debt collection agency, working on behalf of our local council, saying he owes £31. It said it was relevant to our current address, which really confused us, because our council tax comes out of my bank account, paid by Direct Debit.

So, he phoned the council this morning, and apparently it's outstanding council tax from seven years ago, and two addresses ago. At the time, he was on benefits and therefore wasn't liable for paying council tax (we weren't living together at that point). Since then, we've moved twice, and at all times the council have had both of our names registered at the relevant address and our council tax has always been fully paid up.

His main complaint is that at no point have the council contacted him about this outstanding money themselves, despite having been aware of his address for the last seven years; the first we hear of it is a rather strongly-worded letter from a debt collection agency.

My question is this: is there a time limit the council's ability to reclaim this money, and does my partner have a valid complaint that the council have not approached him first themselves. The letter says that if they don't receive the money within 14 days, they'll start adding extra costs to the amount. But we've just had our tax credits cut in half and work for my partner is in a quiet patch right now, so we're already having to cut back our outgoings. Any advice on our rights would be wholly appreciated! Thank you

shaun_from_Africa

If you've not heard anything from the council or their debt collectors for 6 years and you've not acknowledged the debt nor made any payments towards it in this time then the debt is normally classed as "statute barred"

http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

You should write to the collection agency (recorded delivery) informing them that this debt is no longer valid due to the Limitations act 1980.

fluffnutter

Doesn't work for council tax (nor any other type of tax), unfortunately. They can chase you for ever. Then kill and eat you. I made that last bit up. But the first bit's true.

Edited: The first bit's trueish.

shaun_from_Africa

There is a mention of council tax arrears in the link I gave:

Council Tax
If the Council Tax was due more than 6 years ago then the council are unable to ask the Court for a Liability Order (a liability order allows the council to deduct the Council Tax debt from your wages or benefits). However, it is unlikely that the council will have allowed this to happen, and they will usually have obtained a Liability Order before the 6 years are up.

But being a private website, there is no way of knowing how accurate all of the info is.
If it is correct, I still would have thought that the OP would be in the clear because if the council had obtained a liability order in the past 6 years, I'm sure that they would have heard something about this.

fluffnutter

I'm googling like crazy because I was sure that there was no time limit on tax arrears. Unfortunately the 'official' sites (e.g. DirectGov) are unlikely to make it known they can't chase you after six years! I'll keep looking. Apparently it's 20 years in Scotland but I'm guessing this debt is for an address in England.

TBH, even if they are over the period, for the sake of £31 I'd probably just pay (provided I did actually owe the debt of course).

fluffnutter

I *think* that councils can appoint bailiffs too. And they're even meaner than debt collectors. You might want to try posting this on the debt boards, OP.

fluffnutter

shaun_from_Africa wrote: »

There is a mention of council tax arrears in the link I gave:



But being a private website, there is no way of knowing how accurate all of the info is.
If it is correct, I still would have thought that the OP would be in the clear because if the council had obtained a liability order in the past 6 years, I'm sure that they would have heard something about this.

Unless all the correspondence was going to the previous address. Debt collection agencies are usually much more aggressive about chasing down people's current addresses, and it's often not until your debt's been sold that you find out about it. The original company (in this case the council) don't bother with the hassle of finding you - just keep writing to you at the old address.

LisaB1970

They did this to me a couple of years ago. But they sent the bailiff straight round with no warning.
Said i owed £600 for council tax for 7 years previously. I was under the impression I had cleared everything I owed after my divorce inclusing CT. I had been in council accomodation for 5 years so its not like they did not know where i was.

The bailiffs hounded me, and the council would not accept any payments so i went to a solicitor. I also complained to the Ombudsman who said the council SHOULD have collected or tried to collect this within a reasonable time and by sending bailiffs with no warning 5 years later, had, quite frankly, cocked up.
The council could not prove I owed this money or produce any kind of documentation relating to this alleged debt. They recommended it for write off before it went to court.

HOWEVER......6 weeks ago i got a debt collection letter for the same bill!
Luckily I had kept the letter saying it was written off and had to fax it to the council because....surprise surprise...they had NO RECORD of this at all.
My advice was ask WHY it has taken so long, ask for original bills etc. If they cant produce them take it further.

CIS

I'm googling like crazy because I was sure that there was no time limit on tax arrears. Unfortunately the 'official' sites (e.g. DirectGov) are unlikely to make it known they can't chase you after six years! I'll keep looking.

The statue of limitations doesn't apply however under the Council Tax (administration & Enforcement) regulations 1992 a council has to issue the Court Summons within 6 years of the bill being issued (note its the issuing of the bill that starts the 6 years). once the Liability Order has been issued in response to the summons the debt remains collectable indefinitely.

At the time, he was on benefits and therefore wasn't liable for paying council tax (we weren't living together at that point).

Being on benefit does not remove you from council tax liability. If your jointly liable with another person you remain liable for any council tax due even if you claim council tax benefit and any remaining council tax would be collectable from you.

gordikin

CIS wrote: »

The statue of limitations doesn't apply however under the Council Tax (administration & Enforcement) regulations 1992 a council has to issue the Court Summons within 6 years of the bill being issued (note its the issuing of the bill that starts the 6 years). once the Liability Order has been issued in response to the summons the debt remains collectable indefinitely.

Being on benefit does not remove you from council tax liability. If your jointly liable with another person you remain liable for any council tax due even if you claim council tax benefit and any remaining council tax would be collectable from you.

No statue typo aside that was my thoughts exactly...I'm pleased you came in and explained just before I did...I do so like giving others a chance!

geordieracer

The pertinent point of the OP was that their partner was on benefits at the time. This should, in theory make the debt unenforceable as it shouldve been paid for as they were on benefits.