Several council house tenants have been left thousands of euro in arrears on their rent because of a cock-up by the local authority.
Louth County Council recently carried out a rent review of all its tenants with question marks emerging in 58 cases over what should have been paid and what was actually paid after what was described as being a “misinterpretation” of the rent scheme.
In one of the cases a woman who believed she was in credit on her account is now €13,000 in arrears.
There were 500 cases from this summer’s review where more money was owed to the council than had been originally thought. It was revealed at Monday’s County Council meeting that 58 of those were the council’s own fault while the remaining 442 were due to undeclared incomes, with one tenant owing more than €20,000 as a result of this.
The rent arrears owed to the council have increased by 65% in just under a year from €1,951,000 in July 2014 to €3,215,000 in August this year.
The matter in relation to the 58 is solely in relation to Dundalk, with the former town council interpreting things wrongly when calculating rents. In Drogheda the rents were properly calculated.
Cllr Maria Doyle
Commenting on the matter on the Michael Reade Show on LMFM yesterday, Cllr Maria Doyle of Fine Gael hit out at the council’s handling of the matter.
“There’s a few problems here that we need to look at,” she said.
“Firstly the council has a poor record on debt collection in general, not just in terms of rents but rates. In my opinion they haven’t done anything really yet to tackle the rent arrears problem and it’s increasing every month.”
Cllr Doyle said rent reviews needed to be carried out more regularly.
“I’ve been told they hadn’t carried out a rent review in three years and really it should be an annual review.
“There’s another issue that if you have undeclared income you should let the council know but that information would be captured if the rent reviews were done more regularly.”
Also speaking on LMFM, Cllr Mark Dearey of the Green Party said he had sympathy for the 58 tenants affected by the council’s error.
Cllr Mark Dearey
“It’s utterly unwelcome news for the 58 households who find themselves in arrears not due to any deceit on their part but because of an error in how the legislation was interpreted in Dundalk.
“The problem seems to primarily in Dundalk and dates back quite a period because you don’t build up those sort of arrears in a year. It could take many years to build up.
“At the very minimum people have been getting undercharged through no fault of their own. I asked why previous county managers had not seen this trend between the two towns and I was taken aback by the reaction I got but, leaving that aside, the question remains how long is this going on for and why did nobody spot it? I think those questions need to be answered.”
Cllr Dearey said those affected shouldn’t have their lives “impaired” by the council error, pointing out they may now struggle to get the likes of a credit union loan because of the debt against their name.
“The 58 households in this particular bind, payment plans may be put in place for them but nevertheless they have debt against their names now.
“There may well be a challenge through the Ombudsman from one of these households and it seems to me they would have a strong case.
“A writedown won’t be considered but some of this can’t be paid. There are people who take the council as a soft touch and won’t pay in any shape or form but other people do need assistance,” he said.