Court action re late Council Tax payments. Is what the council telling me correct?

Kster

Hi people,

Hopefully this is an appropriate group for this post. Please move if not.

So I got behind with my Council Tax, and apparently I was actually two payments behind, according my council. About 6 weeks ago I was sent a letter saying legal would be taken against me if I didn't catch up with payments (although they didn't inform me about the two payments behind part, I thought I was just 2-3 weeks late with payment). I realise at this point I should have called them, but instead, not realising I'd got so behind, I made a standard monthly payment (admittedly, about 20 days late). So for a month I heard nothing else, and assumed nothing was going to happen and they'd cancelled the action because I made payment.

So I was wrong, and two weeks ago, a court summons letter arrived, court action for the 31st of this month. So I did what I should have done over a month ago and called them. When I realised I was behind, I offered to pay the two late payments, but I was told by them that either I can pay them the full amount, which is over £900, which I can't afford, or I let the court action happen. I was told this wasn't a CCJ, and wouldn't affect my credit rating, and I don't have to attend court, but what will happen is I'm reassigned a repayment schedule.

I appreciate this is my fault for getting behind in my payments, but I'm not really happy about this, mainly because I'm going to be charged a £65 court fee (I'm also not entirely convinced it won't have some sort of effect on my credit, or some other side effects), which just gives me a bigger bill to pay off.

Is it right, what I was told, that even if catch up with the two payments, the court action will still happen, and it's either all or nothing, and pay the full amount or let it happen? This doesn't seem or sound right to me.

Thank you.

elsien

They are going for a liability order, the reason being that if you fail to make payments in future  then they can take further enforcement action such as an attachment of earnings or money deducted from benefits.

It's not a CCJ so doesn't affect your credit history in the same way as a CCJ would - you being in arrears will be what affects your credit.
Court action would normally be after more than one reminder so how many letters, have you had? If you haven't done so then setting up a standing order would probably be a good idea from here on in.

The court fee will be payable anyway, because even if the hearing was cancelled  the fee has still had to be paid. And they will be going ahead because they probably don't believe that you will carry on paying on time after your last payment was still 3 weeks late. 

Example explanation and grounds for dispute in here-  check your own councils website. 
https://www.worcester.gov.uk/council-tax/what-if-i-don-t-pay

fatbelly

Yes that's correct. The key thing is to get a new agreement immediately after the LO is granted.

The council should agree a plan that clears the debt by the end of the financial year

Most people continue to ignore and then find the account is sent to bailiffs

Kster

elsien said:

They are going for a liability order, the reason being that if you fail to make payments in future  then they can take further enforcement action such as an attachment of earnings or money deducted from benefits.

It's not a CCJ so doesn't affect your credit history in the same way as a CCJ would - you being in arrears will be what affects your credit.
Court action would normally be after more than one reminder so how many letters, have you had? If you haven't done so then setting up a standing order would probably be a good idea from here on in.

The court fee will be payable anyway, because even if the hearing was cancelled  the fee has still had to be paid. And they will be going ahead because they probably don't believe that you will carry on paying on time after your last payment was still 3 weeks late. 

Example explanation and grounds for dispute in here-  check your own councils website. 
https://www.worcester.gov.uk/council-tax/what-if-i-don-t-pay

Well, I'm certain I've only had one, this year, but I did get behind at one point last year, then sorted it out, so maybe that's a factor?

Ok, thanks for the replies guys. Looks like I'm going to have to take the £65 on the chin, by the sounds of it.

Thanks.

Kster

fatbelly said:

Yes that's correct. The key thing is to get a new agreement immediately after the LO is granted.

The council should agree a plan that clears the debt by the end of the financial year

Most people continue to ignore and then find the account is sent to bailiffs

Something tells me it gets quiet a lot more expensive at that point.

Thanks.

lincroft1710

What a lot of people fail to realise is that the total CT payment for the forthcoming financial year is actually due on the 1 April and spreading the payment over 10 or 12 months is conditional on making regular payments on the agreed dates. Failure to make 2 payments usually means the whole outstanding amount becomes due immediately.