Hi,

Wasn't sure if I should post this under council tax or debt collectors so apologies if you think I've posted in the wrong place.

I live in Scotland, so bear that in mind when replying.

I was late paying my council tax, several months in a row. The council sends a warning letter or two, then simply hands the debt over to a collector, Scott and Co, Sheriff Officers and Messengers at Arms. Their letter stated that I owed the council £1248, and an additional charge of £124.80, presumably for the debt collection cost, it does not actually say what it is for.

I immediately payed the outstanding council tax, £1248 direct to the council and not to the debt collector, and chose to ignore the extra charge for the time being.

Now I have another letter from Scott and Co demanding the balance due, £124.80, and saying that they have been instructed to execute a charge for payment and funds arrestment, which will result in my bank accounts being frozen until the debt is cleared.

My question is, do I have to pay this £124.80? It sounds like an arbitrary fine that the debt collector has made up and is attempting to threaten me into paying. I don't think this charge has been in any way sanctioned by a court. Nor do I think the fine stems from any contractual or legal agreement between myself and the council. I also think £124.80 is a lot of money to charge for sending out a letter.

Any advice is greatly appreciated. Thanks.

Rupert

Rupert

The £124.80 is the statutory surcharge that is added to your Council Tax debt when it is not paid on time. To get this the Local Authority presents a petition with your (and many other) Council Tax account details to the local Sheriff. He/she signs it granting the warrant and at this point 10% is added to the debt. The Council may try and make an arrangement with the account holder at this point and keep the extra 10%. If this is unsuccessful the debt will then be passed to a debt collection agency that also has a Sheriff Officer division.

If Scott & Co do execute a charge for payment this will crank your debt up even more and the action on the back of the charge, wage/bank arrestment, will further add to your costs.

Thanks for the explanation. It would be helpful if the debt collector made this clear on their letter. I will now pay the 10%.