ok, Im trying to sort this out for a friend who is just getting more and more stressed and flustered over this as it goes on. Its hopefully not too long winded and Ill try to keep to the relevant points only. From here on she will be refered to as Sally.
Ok, first thing that has been done is a letter has been written to Sutton Borough Council giving me permission to speak to them and deal with this on behalf of Sally, so I now have the ability to write and phone and disuss her account on her behalf.
The scenario:
Sally is a single mum but works full time and uses a childminder to collect her son after school. She is also a home owner and works hard for what she has, and as you can imagine money is tight.
She just changed jobs in September to a better paid one and one in the field for which she is currently studying and going to college in her spare time.
She gets some Working Family tax credit but no other financial support or benefit of any kind.
In August Sally was aware that with the change of jobs, the slight gap between the finish date and the start date of the new job and not getting paid till the end of the first month in arrears (which would be October) meant that she didnt have enough money to pay everything for a couple of months
Prior to this she has never been in any debt with the CT office and so does not have a record as a bad payer.
- On the 9th of September she phoned the Sutton Council tax office and explained that she was starting a new job and was having to borrow money for food for the next month and a half (which covered CT payment due on 1 Sept and 1 Oct) but when she was paid in October she would catch up by paying 50% extra for the remainder of the payment period and catch up.
The CT staff on the phone told her that although she couldnt officially make the arrangement that she was asking for, provided payment was made during October there should be no problem. Her account would be marked up and commented that she couldnt afford payments for this time. She was told that warning reminders would be sent out automaticaly by the computer. (I have checked and it is on record that this call took place, and that there would be no payment for the stated reasons untill mid/end of Oct)
On the same day Sally cancelled the direct debit so that a payment couldnt be taken and cost her bank charges too.
- 27thAugust a letter from the CT office arrived stating that the bank had informed them the DD had been cancelled.
- 21st September a payment reminder was recieved. As she had been told these were sent out by automation it was ignored.
- 25th October (a few days before a payment was about to be made) the next corespondence from the coouncil was recieved.
A summons for a court hearing due to be held on the 15th of November seeking payment of the entire amount, plus £80 costs.
- 28 October. On my advice made a £100 payment online to the CT office. It was a sunday and I figured that when Sally rang them the following morning it would prove she was not trying to avoid making payments, but genuinely just needed a bit of room for two months.
- 29 Oct Sally rung the CT office and was told that the court summons was to be withdrawn and she would not have to go to court. She had to set up a new monthly DD which included the outstanding amount, plus the £80 admin fee for the summons.
Now the questions.
There is no issue with the repayments by direct debit for the outstanding amount. It what was understood was going to happen anyway.
The issue is with
the £80 fee that has been added.
My understanding of the law is that costs for a court summons can only be recovered if the summons is executed and the case goes to court. If the summons is withdrawn or stopped, any associated costs also have to be removed from the debt.
- 2nd of November a letter is recieved from the CT office stating the following:
Thankyou for your recent communication.
Detailed below is the special payment arrangement that was offered to you on the 29th October.
As has been explained to you the Council will be going to court to apply for a liability order at the court hearing to cover the outstanding balance.
Provided the new arrangement is adhered to, no further recovery action will be taken and the liability order will remain unactioned.
Failure to strictly adher to the arrangement will result in the liability order being passed to a collection agent witout any further warning.
This would also incur additional costs.
So this brings us up to date.
What Im trying to make head or tail of is this.
Is this £80 charge legal, can it be recovered by adding it to the council tax bill?
Has the summons been withdrawn or is it actually to be executed and a liability order obtained, which will then be held on file as a threat? And is it legal for them to apparantly openly do this?
And if all of the above is above board and correct, was the summons illegal in the first place(thereby making the £80 charge also illegal) if the legal doctrine of Estoppel is applied?
The way that I understand it, Sally was following what had been agreed over the telephone, so Estoppel would mean that the CT office could not punish her with additional costs provided she was following the agreement?
This £80 fee has really annoyed me and if I can sort this out on her behalf I will.
I look forward to all your replies, and thank you in advance for all advice and help given.
Nick.
ps. sorry for how long winded that got and thanks for wading through it all
Advice on Council tax please. Does Estoppel apply in this case and other advice? 
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