IRRV Alert July 4 2008
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A recent judgement by the LG Ombudsman
Friday 18th July 2008
Vulnerable woman bankrupted over council tax debt
Camden Council made a woman bankrupt for non-payment of council tax, even though she had mental health difficulties and was unable to conduct her own affairs, finds Local Government Ombudsman, Tony Redmond. In his report, issued today (18 July 2008) he says part of the Council knew of the woman’s problems, but the Revenue department did not find this out because it failed to make effective internal enquiries. Had it done so, the Council would most likely have taken different steps, with less serious consequences.
The Ombudsman says: “I do not think it unreasonable for Revenue Officers to look beyond their own departmental information and consider a council's records as a whole.” This is in line with guidance from the Information Commissioner, which says that that information held by different authority departments can be shared as long as it not for a completely separate and unrelated purpose, and data protection principles are applied.
‘Mrs Gordon’ (not her real name for legal reasons) had mental health difficulties and was not capable of managing her own affairs. Camden Council’s Community Mental Health Team was aware of this. Mrs Gordon had not paid her council tax. The Council’s Revenue team applied for a bankruptcy order, which was granted. They did not adequately record what checks they made and did not make any checks with the social care side of the Council, which would have shown that bankruptcy was not an appropriate recovery method in this case.
The Ombudsman says: “The failure to make effective internal enquiries led to unwarranted action against a clearly vulnerable lady.”
The consequence was that the resolution of a separate legal case concerning Mrs Gordon’s financial affairs was delayed, and substantial unnecessary costs, payable by Mrs Gordon, were incurred by a court-appointed Litigation Friend and the Trustee in Bankruptcy.
The Ombudsman finds maladministration causing injustice and, in accordance with his recommendations, the Council has agreed to apply to the court to annul the bankruptcy. If the bankruptcy is annulled the Ombudsman recommends that the Council contacts credit rating agencies to advise them that Mrs Gordon’s bankruptcy has been annulled. The Ombudsman also recommends the Council changes its procedures to make stringent checks for potential vulnerability before taking action leading to bankruptcy, a charging order or committal.
Information Files
246-07A12661.doc