Random Council Tax Bill from 2005 arrives!

[mebuck]

Hi,

 

What a wonderful new year present from Manchester City Council. Let me set the scene:

 

My wfie and myself bought a house a few years ago and now live together in the borough of Wigan. We pay our mortgage, council tax extra - on the nail. This new year, we receive a random letter from Manchester City Council. It's referencing a property which my wife used to live at in Manchester (in 2005). It's asking for £522.44 in apparent unpaid council tax for 01.04.2005 to 26.08.2005 and court costs!

 

This is the first we have known about this! All I can guess is they've finally got round to tracking an unpaid debt down....

 

My wife recalls living in the house for approximately a year, but claims everything was always paid up. Further to this, the house was rented by 3 people, one of which moved to Peru a few years ago and the other one is not-contactable. Myself and wife feel it's grosely unfair for the council to suddenly land this on our door whether it's a legitimate claim or not. Apparently there was a summons issued 25.05.2005...it's a standard letter and doesn't make sense.

 

What should I do? Write back and say we know nothing about this and ask for evidence to show it hasn't been previously paid? Can anyone suggest a template letter? I can't stress enough that this letter has come totally out of the blue, my wife has no idea that there was any outstanding amount and nothing has ever been shown as outstanding on previous credit reports with experian etc.

 

Any suggestions much appreciated.

[rebel11]

Hi me

 

The alledged debt becomes statuted barred on 02/04/11. As you say it's all paid up, get them to prove it. Heres a Template you can send, amend it if you need too:-

http://www.consumeractiongroup.co.uk/forum/content.php?428-General-debt-letter-if-you-know-nothing-of-the-debt

[hallowitch]

it looks like there has been a summons issued this will have resulted in a liability order being granted council tax debt does not become statute barred

 

 

councils don't put unpaid council tax on credit reports

[rebel11]

Hi Hallowitch,

 

Your quite correct, regarding council tax, hopefully it an error on the council's part, it's taken them 5 years to chase if it isn't an error.

 

it looks like there has been a summons issued this will have resulted in a liability order being granted council tax debt does not become statute barred

 

 

councils don't put unpaid council tax on credit reports

[rebel11]

Under Regulation 34(3) of the Council Tax (Administration and Enforcement) Regulations 1992 it states the following:

 

"The council should not go to the magistrate’s court and ask for a liability order for council tax if the application is made more than six years after the council tax became due. This is under Regulation 34(3) Council Tax (Administration and Enforcement) Regulations 1992"

 

 

Liability Orders and the 6 year rule.

 

The Limitations Act 1980 imposes various time limits on different classes of

 

 

proceedings these are:

• six years for sums due under contract,
  
• six years for tortious claims,
  
• three years for personal injury cases
  
• twelve years for recovery of land.
  

Whilst the six year rule applies to the right of a billing authority to obtain a liability order under reg.34(6) Council Tax (Administration and Enforcement) Regulations 1992 SI 613, there is no express time limit for the collection and enforcement of local taxes once a liability order has been obtained.

 

Nevertheless, some Magistrates (no doubt guided by their clerk to the court) considered the overriding duty is to exercise discretion reasonably.

 

Some are concerned that with debts going back more than 6 years (even if the billing authority can demonstrate recovery throughout) could be considered an abuse of legal process.

 

Three years is the maximum period over which a committal postponement should run. The legal ruling for this is in re: R. v. Newcastle Upon Tyne Justices ex parte Devine (QBD) (1990).

 

Orders requiring more than three years to pay become irrecoverable.

[ploddertom]

Hi,

 

What a wonderful new year present from Manchester City Council. Let me set the scene:

 

My wfie and myself bought a house a few years ago and now live together in the borough of Wigan. We pay our mortgage, council tax extra - on the nail. This new year, we receive a random letter from Manchester City Council. It's referencing a property which my wife used to live at in Manchester (in 2005). It's asking for £522.44 in apparent unpaid council tax for 01.04.2005 to 26.08.2005 and court costs! - Does she know when she moved to and from this address, there is a good chance she may have moved before the dates quoted and the Council have not updated their records.

This is the first we have known about this! All I can guess is they've finally got round to tracking an unpaid debt down....

 

My wife recalls living in the house for approximately a year, but claims everything was always paid up. Further to this, the house was rented by 3 people, one of which moved to Peru a few years ago and the other one is not-contactable. Myself and wife feel it's grosely unfair for the council to suddenly land this on our door whether it's a legitimate claim or not. Apparently there was a summons issued 25.05.2005...it's a standard letter and doesn't make sense. If all 3 people are liable then any of them can be made to pay the whole debt regardless of the status and whereabouts of the others.

 

What should I do? Write back and say we know nothing about this and ask for evidence to show it hasn't been previously paid? Can anyone suggest a template letter? I can't stress enough that this letter has come totally out of the blue, my wife has no idea that there was any outstanding amount and nothing has ever been shown as outstanding on previous credit reports with experian etc. Unfair I know but if the Council have a Liability Order they already have proof the money is owed and it is up to your wife to now prove otherwise.

 

Any suggestions much appreciated.

 

First things are to try and check when she moved, bank statements, utility bills, CT from next property, if rented go back to the Landlord.

 

PT