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Council Tax owed following benefit overpayment.


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My daughter and her husband have recently been informed that they have been overpaid council tax benefit by around £1100. With only two months left to make payments this year they have been told that two payments each of £550 will be taken by direct debit from their bank account. This will force them into a severe and costly overdraft worsening the situation as they have also to repay a £2500 overpayment of housing benefit.

They are desperately tring to improve the situation by making cuts in their expenditure (cancelling satellite tv, selling goods on ebay etc).

They are perfectly willing to pay back all the money, but need to be able to do so in an affordable way.

Does anyone know whether they can prevent the two payments being taken while they sort themselves out?

The local benefits people have told them these payments have to be made.

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Is it the benefit department that is seeking recovery or is it council tax department itself?

 

This is important.

 

Direct Debit needs the authorisation of the account holder.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

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ErikaPNP

 

I think it's the council tax department as that is who my daughter has a direct debit set up with and the latest communication was described as an invoice, although the initial breakdown of overpayments of both council tax benefit and housing benefit overpayments I think came from the benefits department. Does this make a difference? I can contact her to find out.

Edited by lordswood
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Okay - I've moved this thread to the Council Tax section of the forum. The reason I have done this is that the owing of Council Tax and council tax benefit are two seperate things. What appears to have happened is the benefit section have taken back the benefit that was overpaid to the Council Tax Department, and now rather than owing the benefit section, she owes the council tax itself.

 

As they have DD authorisation, they will go ahead and take those payments. She should get in touch with them explaining that doing so will cause her financial hardship, this debt being due is the result of a benefit overpayment and seeking to enter an affordable repayment plan instead.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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ErikaPNP

 

She's already done that and was told that it had to be repaid, before the next billing period starts in April. Is she within her rights to cancel the direct debit to prevent the payment being taken while they sort out a payment plan with the council tax department.

She has two young children. If it was just her and her husband they would move in with us to save money, but my grandson is at a special school and so cannot reasonably leave the area.

Edited by lordswood
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She is within her rights to cancel any DD but please do bear in mind that if they do not receive the payments within the tax year, they can obtain a liability order which will add court costs and give them more power to enforce payment. They really should be more accomodating and allow her to pay up the arrears if she is trying to sort it out. It's not like she's avoiding paying!

 

I would urge her to get in touch with CAB to contact the council on her behalf if they are not prepared to work with her on this.

 

I'm going to flag up your post to see if you can get more advice on this - I'm ok with benefits but not so great with Council Tax in itself.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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Which way to turn. Councils have a lot of discretion when it come to collections and payments do not 'have' to be made by the end of the tax year. Council prefer it that way to keep the books tidy.

 

Cancelling the direct debit is your right or if you haven't authoristed that amount, you can get any DD payment reversed by your bank. So how do you go.

If it's not paid, they will for sure get a liability order, (which isn't a ccj or go on any records), depending on the council, that can add anything up to £100 or in some cases more to your bill. If the liability order isn't safisfied, they will send in the bailiffs, which isn't a problem as you just ignore them and don't let them in, but that will add another £45 to your bill. The next course would be to make an attachement of earnings where you employer, (if you have one), would have to make deductions from your pay and send that to the council. He can also charge you £1 per deduction as well.

 

If a liability order is obtained, and if applied for they always are, then you can ring the council and they will come to an arrangement to pay.

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