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barryboy

Liability for Court Costs when debt raised in error

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Hi,

 

Long story - short version:

 

We used to claim Housing & Council Tax Benefit but ended up cancelling due to complexity of claim with variable work hours and so many over/under payments. Council claimed overpayment of £199 which we disputed and forgot about. Fast forward many (9-10) months - we get a court letter and contact Council (silly, should have contacted Court) to state that overpayment was disputed - they end up getting Suspended Attachment to Earnings despite dispute adding £150ish of Court costs (Court says pay £80 to dispute!).

 

Days later Housing Benefit department write back and say "Oops, yep our mistake - you were right invoice now gone" or more accurately written off by counter underpayment due to recalculation - but the crux of the matter is that they admit that they made an error.

 

Question: Are we still liable to pay Court costs to the Council? Or as the invoice was for an "error" by the Council should they pay costs?

 

Thanks in advance :)

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Hi BB

 

If you have a letter explaining its their mistake, you should be able to reclaim the Costs from the Council.

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Thanks for your post - Yes, the letter we received states that the decision has been reviewed and essentially reversed - however given the hassle we've had to date I'm not anticipating things being that easy. Is there any legislation to support this?

Edited by barryboy

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