Clarion Housing Association Limited (202003544)

REPORT

COMPLAINT 202003544

Clarion Housing Association Limited

11 February 2021

Our approach

The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This is set out in the Housing Act 1996 and the Housing Ombudsman Scheme (the Scheme). The Ombudsman considers the evidence and looks to see if there has been any ‘maladministration’, for example whether the landlord has failed to keep to the law, followed proper procedure, followed good practice or behaved in a reasonable and competent manner.

Both the resident and the landlord have submitted information to the Ombudsman and this has been carefully considered. Their accounts of what has happened are summarised below. This report is not an exhaustive description of all the events that have occurred in relation to this case, but an outline of the key issues as a background to the investigation’s findings.

The complaint

The complaint refers to:
1. The landlord’s administration of the resident’s rent account.
2. The resident’s concerns in relation to a repair needed to her stairs.

Jurisdiction

What we can and cannot consider is called the Ombudsman’s jurisdiction. This is governed by the Housing Ombudsman Scheme. When a complaint is brought to the Ombudsman, we must consider all the circumstances of the case as there are sometimes reasons why a complaint will not be investigated.
After carefully considering all the evidence, in accordance with the Housing Ombudsman Scheme, the following aspects of the complaint are outside of the Ombudsman’s jurisdiction.

The resident’s concerns in relation to a repair needed to her stairs.

Paragraph 39 (a) of the Scheme states:

“The Ombudsman will not consider complaints which are made prior to having exhausted a member’s complaints procedure”.

The Ombudsman can only consider matters which have been raised with the landlord as a formal complaint and which the landlord has issued a final response to, under its complaints procedure. This is so the landlord can resolve the complaint itself, before the Ombudsman becomes involved. This complaint has not exhausted the landlord’s complaint procedure, therefore, the Ombudsman is unable to consider the repair needed to the resident’s stairs as part of this investigation. If the resident completes the landlord’s complaint process on these matters and remains dissatisfied once she has received its final response, she could refer the matters as a new complaint to the Ombudsman. In view of this, the current investigation focuses on the period up until the landlord’s final response to the resident’s complaint regarding her rent arrears on 27 May 2020

Background

The resident is an assured tenant of the landlord.

Summary of events

The resident emailed the landlord on 26 September 2018 and stated that she had received a Notice of Seeking Possession (NOSP) due to arrears on her rent account. She stated that a few weeks prior she had received a separate NOSP for a different outstanding balance. She maintained that the landlord had told her on two occasions that the amount was incorrect, and it would amend this figure. It had explained that this was due to a new computer system and stated that it would look into this matter and provide the resident with her rent account statement. The resident sent a further email on 8 October 2018 maintaining her position that the outstanding balance was incorrect. She requested that the landlord provide her with the correct rent arrears figure and account statements as she had not received this information.
The resident called the landlord in May 2019 to discuss her rent account. The landlord’s records show that the resident said that a number of her benefit payments had been stopped in April 2019. She stated that she had sent the relevant information to the local authority’s Housing Benefit team (Housing Benefits), but her claim was still suspended. The landlord advised that since the previous payment agreement made for the outstanding balance on her rent account had been broken, she may be referred to court.
The landlord sent the resident two separate NOSP letters on 1 July 2020. The letters had separate arrears figures. The landlord had identified the higher figure to be incorrect.
The landlord attempted to call the resident on 1 July 2019 to tell her that the court hearing had been aborted, but the call did not go through. A call took place on 11 July 2019 and the resident was told that the hearing would not go ahead due to the previous NOSP being invalid. The resident was advised to speak to the local authority’s Housing Benefits department (Housing Benefits) as it had not been making regular payments into her rent account.
The resident called the landlord on 1 August 2019 and stated that she had submitted her documentation to Housing Benefits but had not received a response.
The resident called the landlord on 23 September 2019 and stated that she was due to undergo surgery on 30 September 2019 and would not be able to attend court on 4 October 2019. She requested that the date be changed. The landlord advised that it could not do this, and the resident would need to contact the courts directly.
The resident called the landlord on 3 October 2019 to advise that she would not be able to attend court the following day as she had only just left hospital following her surgery. She stated that she had tried to contact the court but could not get through. The resident called the landlord multiple times in October 2019 for an update on the outcome of the court hearing. She was advised that the landlord did not have any updates on its system.
The resident called the landlord on 11 February 2020 to confirm the balance on her rent account as she believed she had been overcharged due to previous incorrect information. The landlord reviewed all charges and explained that her housing benefit payments had fluctuated and that the resident had not been making payments to cover any shortfall in her housing benefit which had led to the debt on the account. The resident wished to go back to court to explain to a judge that this amount was incorrect. The landlord advised that the previous hearing had not been attended due to a booking oversight and the resident had also not been able to attend. It advised that an agreement would be needed to prevent further action being taken. The call then dropped.
The landlord’s records show that it attempted to call the resident back on the same day, but the line was busy. It left a note to advise the resident that the balance on her rent account was correct and noted that an agreement was required to clear the debt.
The resident called the landlord back on 21 February 2020 and set up an arrangement to pay an additional amount per week to clear the arrears. She stated that the incorrect information she had previously been given had contributed to the debt on the account as she stated that, if she knew the correct balance, she would have made an arrangement to pay sooner. She also stated that she did not understand why court dates had been set up and the landlord had not attended.
The resident raised a complaint with the landlord on 11 March 2020 and stated that she had been asked to pay the arrears on her rent account despite being told several times that the amount she needed to pay was incorrect. She stated that she had been sent to court twice over these arrears; the first time the arrears amount was incorrect, so no one attended; and the second time no one had attended. She was then told to set up a payment arrangement. The resident stated that she did not set up an agreement straight away as she believed the amount to be incorrect. She stated that she was now being harassed with constant calls about making a payment arrangement which she had now set up. She said that the emails she had sent the landlord regarding this matter had been ignored. She requested that the landlord provide the correct amount of arrears owed.
The landlord issued a stage one complaint response to the resident on 20 April 2020 and stated the following:
1. It confirmed the outstanding balance on the resident’s rent account as of 7 April 2020. It noted that the resident had agreed to pay her current rent and an additional amount per week to clear the arrears. It stated that as long as the resident met the terms of this arrangement, no further action would be taken.
2. It stated that the resident was informed of the correct balance on her rent account on 11 February 2020. It had explained that as the resident’s housing benefit payment varied, she would need to pay different amounts to keep in line with the repayment agreement. It noted that the resident’s rent amount had recently been increased and she would need to check her housing benefit entitlement to make sure that this had been adjusted to cover the increase.
3. It advised that the court hearing was not attended due to an administrative oversight. It understood that the resident was not able to attend this hearing either, as she was in hospital.
4. It advised that it needed specific dates and times for the calls the resident had stated had not been responded to in order to investigate this matter further.
5. It apologised for any confusion caused by the events regarding the resident’s rent account and hoped that it had now clarified the situation.
The resident requested for her complaint to be escalated on 24 April 2020 and stated the following:
1. She said that she had tried to call the landlord but could not get through. She stated that she had called multiple times previously and not always had a call back. She said that her emails had been ignored.
2. She stated that she had been told by two separate members of staff that the arrears on her rent account were incorrect and that she did not have to pay the outstanding balance. She was told at the time that this was due to a new system being installed. She expressed dissatisfaction that she had now been told that the outstanding balance was correct and that she would need to pay this significant amount.
3. She said that she had been sent to court on two separate occasions. No one had attended the first hearing as the arrears figure had been incorrect. She stated that she was not told that the landlord would not be attending, and she had needed to call the landlord who then stated that the case would be thrown out as the amount was incorrect.
4. She stated that she was happy to pay an amount but did not feel she should pay the full outstanding balance due to the stress and the time spent pursuing the matter.
The Landlord issued a stage two complaint response on 27 May 2020 and noted that the resident believed that the arrears balance it had provided may be incorrect. It stated that it had reviewed the rent account from April 2018 where the account had been around £550 in arrears. It identified that the monthly payments received from Housing Benefit were lower than the amount due in given periods. It stated that it had not received any further payments from the resident to cover any shortfall amount and this was where the rent arrears had accrued. It noted that any payments it had received from the resident were sporadic and of varying values. It confirmed that it had implemented a new operating system in April 2018 where it needed to develop its understanding of how the system was presenting balance information. It apologised for any confusion the initial, potentially incorrect information, may have caused in 2018. It confirmed the current outstanding balance and stated that it would not be able to reduce these arrears as they were attributed to rent which was unpaid.

Assessment and findings

The landlord’s administration of the resident’s rent account.

The resident has said that issues surrounding her rent account has caused her to experience problems with her health. It is beyond the expertise of this Service to draw conclusions as to the cause of issues with the resident’s health. This report will consider the general distress and inconvenience which the situation has caused the resident.
The Tenancy Agreement states that it would be the resident’s responsibility to ensure that the weekly rent and any service charge is paid. If there are rent arrears, the resident would be expected to make a further weekly instalment toward the outstanding balance. If the payments are not made, the landlord may begin court proceedings to end the tenancy. The landlord’s NOSP letters add that if housing benefit payments have stopped, or the resident is waiting to hear about their claim, the resident should contact their Housing Benefit department. It confirms that it is the resident’s responsibility to ensure that the housing benefit is paid. It would be the landlord’s responsibility to provide clear and correct information in relation to a resident’s rent account. The landlord’s Arrears Policy states that landlord and tenant should work together to resolve any housing benefit problems and the landlord may contact the directly local authority in relation to benefits with a resident’s consent.
The resident has stated that she was told that she would not need to pay the outstanding balance on her rent account in 2018 as the figure she had been provided was incorrect. It would be unlikely that the landlord would have advised the resident not to make any payment towards her rent account. If this was the case, the landlord would have been expected to confirm this in writing to the resident at the time and there is no evidence to suggest that this was the case. The resident would therefore still be liable for her ongoing rent payments and ensuring that any housing benefit shortfall was covered during this time.
The resident made the landlord aware that her benefits had been suspended in April 2019. Following this, it would be reasonable to accept that the rent account would have fallen further into arrears if no payment was made by the resident. It is clear from the statements provided that the payments made by the resident were sporadic and of differing amounts. In this case, the landlord was entitled to begin court proceedings as the resident was not making regular payments towards her rent account and had not arranged a payment agreement.
The landlord has taken reasonable steps to ask the resident to contact Housing Benefits to resolve the matter; it has also taken steps to signpost the resident to relevant external support agencies should she have any financial difficulty. It may have been helpful for the landlord to contact Housing Benefits on the resident’s behalf with her consent, to ensure that her housing benefit payments were accurate, although the landlord was not obliged to do so and had reasonably asked the resident to do this herself.

Communication in relation to the account balance

The landlord has taken reasonable steps to investigate the cause of the resident’s arrears and provide an explanation. However, there has been service failure in respect of the landlord’s communication with the resident and its record keeping. The evidence provided suggests that the resident had not been given clear, accurate information regarding the outstanding balance on her rent account following the incorrect NOSP letters sent in 2018. The landlord should be able to provide an accurate account balance and send statements to a resident on request. The lack of clear communication should not have prevented the resident from making ongoing rent payments into her account, although it is likely to have caused some distress and uncertainty about the accuracy of her account balance.
The landlord has established that the resident was given accurate information regarding the outstanding balance on her rent account on 11 February 2020. It is not clear whether the resident had been advised of the correct figure at an earlier date, but it is noted that she had been pursuing this matter since 2018. The landlord has utilised the complaints process to investigate the matter and has provided a satisfactory response as to how the arrears had accrued. However, it has not satisfactorily acknowledged the time and energy the resident had spent pursuing correct information regarding her rent account or any miscommunication on its behalf. It is recommended that the landlord takes steps to ensure that its residents have access to their statements and clear information on what is owed at regular intervals. The landlord should also ensure that its staff are able to investigate a resident’s account to determine the cause of any arrears and provide an accurate explanation of this on request.

Communication in relation to the NOSP letters

Similarly, it would be the landlord’s responsibility to provide the resident with correct information when it came to potentially seeking possession of the property. It is clear that the resident had been advised that the arrears detailed on the NOSPs sent in 2018 had been incorrect. Following a further incorrect NOSP on 1 July 2020, it is understandable that the resident may have lost trust in the landlord and the information it had provided.
The landlord has not demonstrated that it has learnt from the previous issue regarding incorrect NOSP letters being sent in 2018. Whilst it has attributed the previous events to a system issue, it is clear that a further investigation may be needed. The landlord has not fully acknowledged the distress a further incorrect NOSP may have caused the resident at the time. The landlord should have sufficient systems in place to prevent incorrect information being sent to its residents, especially when it comes to the potential threat of eviction which may be a distressing matter. In view of this, it is recommended that the landlord takes steps to review its system for handling possession proceedings and outstanding arrears to ensure the correct information is being provided to its residents when a NOSP is sent.

Communication in relation to court hearings

The resident has stated that the landlord had failed to communicate with her regarding the two court hearings. The landlord’s records show that it took reasonable steps to inform the resident that the initial court hearing would not go ahead due to the incorrect arrears balance being submitted. It had attempted to call the resident on 1 July 2019, but the call had not gone through. Whilst it may have been helpful for the landlord to send an email or letter at this stage, the resident was not significantly disadvantaged as she called the landlord on 11 July 2019 and it was confirmed that the hearing had been withdrawn.
There seems to have been some issues surrounding the second court hearing on 4 October 2019 as neither the landlord nor the resident had attended. It is noted that the resident was unable to attend this hearing and had called the landlord on a number of occasions subsequently for an update which the landlord could not provide. There had been some internal miscommunication and the landlord did not have a record of the second court date. The landlord has now acknowledged that it had not attended the second court hearing on 14 October 2019 due to an administrative oversight with its booking system.
In this instance, the landlord’s record keeping had impacted the resident as she had been awaiting the outcome of the court hearing which she could not attend. She had not been told that this had not gone ahead for some time which is likely to have caused uncertainty and distress. The landlord should have clear records of the dates of any court hearings to prevent these legal matters being overlooked. It is clear that the resident needed to chase this matter on multiple occasions which is likely to have caused further inconvenience. It is recommended that the landlord takes steps to improve its record keeping where it comes to information in relation to court hearings and outcomes to prevent any failures in attendance and miscommunication to its residents.

Conclusion

It is noted that the resident has set up a payment arrangement with the landlord to clear the outstanding balance but believes the figure to be incorrect. It is clear from the evidence provided that the cause of the outstanding balance was due to changing housing benefit payments and a shortfall which had not been paid by the resident. If the resident believes the outstanding balance is incorrect, she may wish to contact Housing Benefits for a list of payments it has made to ensure that each payment has been received by the landlord. The landlord should provide an up-to-date balance to the resident along with her statements so that she may review this herself. If the resident has further concerns in relation to the outstanding balance on her account, she may wish to seek legal advice and pursue this matter through the First Tier Tribunal (Property Chamber) who may be able to provide further clarity on this matter.
Ultimately, the landlord would not be expected to refund any rent during this period. It is the resident’s responsibility to pay her ongoing rent and the landlord has taken reasonable steps to signpost the resident to Housing Benefits and the relevant external services which may provide support. However, in view of the landlord’s service failure in respect of its communication and record keeping, the landlord should offer an award of compensation to the resident in recognition of the inconvenience and distress caused.

Determination (decision)

In accordance with paragraph 54 of the Housing Ombudsman Scheme, there was service failure by the landlord in respect of its administration of the resident’s rent account.

Reasons

The landlord has satisfactorily used the complaint process to investigate what had gone wrong and has provided a reasonable explanation of how the arrears had accrued on the resident’s account. However, the landlord has not satisfactorily identified its miscommunication in regard to providing the resident with an accurate balance, its issuing of incorrect NOSP letters, and its failure to tell the resident that the court hearing of 14 October 2019 had not gone ahead within a reasonable timeframe.

Orders

The Ombudsman orders that the following actions are taken within four weeks:
1. The landlord is to write to the resident with an updated rent account balance and rent statements from this period, to allow the resident to have a clearer understanding of the historical rent arrears.
2. The landlord is to pay the resident £200 in recognition of the inconvenience caused by its miscommunication and its record keeping. This may be paid directly to the resident or directly into the rent account towards the outstanding balance at the landlord’s discretion.

Recommendations

It is recommended that the landlord takes steps to review its system and record keeping for handling arrears and eviction cases to ensure that accurate information is provided at all times.
The landlord should consider taking steps to ensure that its residents have access to their statements and clear information on what is owed at regular intervals.
The landlord should consider carrying out staff training to ensure that its staff are able to investigate rent accounts to determine the cause of any arrears and provide an accurate explanation of this to a resident on request.