Ensuring customers are not subject to unnecessary recovery action, additional costs or hardship

The request was successful.

Dear Crawley Borough Council,

A council taxpayer who owes more than just the current year's liability runs the risk of incurring additional recovery costs through a further application for a liability order if payments which are intended for the current year's liability are allocated by the council's computer to the previous year's liability. This would most likely happen where a non specific payment is made and the computer software is set to automatically allocate these payments to the oldest year's debt.

Councils computer systems have the necessary flexibility to be set to allow non specific payments to be allocated to the arrears or the current year's liability.

I understand that the majority of billing authorities have their computer software set to ensure that their customers are not subject to unnecessary recovery action, additional costs or hardship, i.e. so non specific payments are allocated to the current year's liability.

How does Crawley Council have its computer software set to deal with non specific payments. Current or oldest year's liability?

Yours faithfully,

Gwyn Worth

Freedom Of Information, Crawley Borough Council

Dear Madam,

 

Thank you for your request for information which is being considered under
the Freedom of Information Act.

 

You should receive the information requested within 20 working days unless
the Council does not hold the information or if there is a reason for it
to be withheld.

 

Please remember to quote the above FOI reference number in any future
communications.

 

Kind regards,    

     

 

Freedom of Information

 

 

 

 

Freedom Of Information, Crawley Borough Council

 

 

Dear Madam,

 

Further to your request for information, please see below for the
Council's response in blue text.

 

Kind regards,

 

Gillian Edwards

Audit & Risk Manager

01293 438 384

 

FOI request No: 5406

 

 

Dear Crawley Borough Council,

 

A council taxpayer who owes more than just the current year's liability
runs the risk of incurring additional recovery costs through a further
application for a liability order if payments which are intended for the
current year's liability are allocated by the council's computer to the
previous year's liability. This would most likely happen where a non
specific payment is made and the computer software is set to automatically
allocate these payments to the oldest year's debt.

 

Councils computer systems have the necessary flexibility to be set to
allow non specific payments to be allocated to the arrears or the current
year's liability.

 

I understand that the majority of billing authorities have their computer
software set to ensure that their customers are not subject to unnecessary
recovery action, additional costs or hardship, i.e. so non specific
payments are allocated to the current year's liability.

 

How does Crawley Council have its computer software set to deal with non
specific payments. Current or oldest year's liability?

 

Payments which do not equal the amount of the current instalments set up
on an account, or a multiple of those instalments, are allocated to the
oldest liability.

 

If payments were allocated to the current year, recovery action in respect
of older debts could similarly be made, which may be avoidable. For
example, if there are monies outstanding for previous years which are not
already subject to a liability order, then those monies will be payable as
part of their current instalments. Therefore if a non-specific payment is
received and was allocated to their current year’s liability, then
recovery notices could be generated in respect of previous year’s
liability. Similarly if a payment arrangement for a liability order
balance is made, and a non-specific payment is made and was allocated to
the current year, avoidable action in moving a liability order to an
attachment of earnings stage or to enforcement agents could arise.

 

We of course strive to issue as few recovery notices and take as little
recovery action as necessary, which is evidence by the action taken over
recent years. Should there be any trend or apparent rationale in the
payments made, payments can be reallocated by staff to avoid any
unnecessary action or costs being incurred. We do of course endeavour to
keep communication channels open so that anyone receiving a reminder
notice where payments have been made, albeit different to those set and
notified to them, can discuss the position  on their account and their
intention when making payments, such that in many cases an adjustment to
the cash allocation can be made on their account and fresh payment
arrangements made.

 

Yours faithfully,

 

 

Gwyn Worth

 

 

Dear Freedom Of Information,

Thank you for confirming how payments are dealt with in circumstances where a customer has outstanding council tax liability for more than one year. It is encouraging that Crawley Borough Council is mindful of the principles surrounding the appropriation of payments and implement them.

It is evident that staff deal with payments in a way that complies with appropriation laws (i.e. 'should there be any trend or apparent rationale in the payments made, payments can be reallocated by staff to avoid any unnecessary action or costs being incurred.'). If I understand correctly, this would ensure, even if there has been no express communication in respect of the account a customer intended the payment to be applied to, if it is implied by other circumstances that a specific account had been intended then the payment will be allocated to that debt. If my understanding is incorrect I would appreciate if you would put me right.

Yours sincerely,

Gwyn Worth

Freedom Of Information, Crawley Borough Council

Dear Madam,

Your understanding is correct

Regards

Freedom of Information