What to do if…
you receive a property tax delinquency notice because your escrow payments were not applied

What to do now

1. Identify exactly what notice you have.
   Look for words such as “reminder”, “final notice”, “summons”, “liability order”, “enforcement agent”, “rates”, “Process in Debt Proceedings”, or “Notice of Intention”. Write down the account reference, amount, notice date, deadline, and any hearing or enforcement date.

2. Translate the wording into the UK system.
   In England, Scotland and Wales this will usually be Council Tax. In Northern Ireland it will usually be domestic rates handled by Land & Property Services. Keep the title wording in mind, but deal with the UK authority named on the notice.

3. Check whether the payment was not sent, or was sent but not matched.
   Check:

   • your council tax or rates online account, if you have one
   • your bank statement for the payment amount and date
   • the payment reference used
   • any receipt, confirmation, or transaction record from a mortgage lender, budgeting account, payment service, payroll scheme, or admin agent

4. Contact the billing authority and ask for recovery to be put on hold while they investigate.
   Say: “I am disputing this because a payment was sent or taken but may not have been applied to the account.”
   Ask:

   • which instalments or rates amounts they show as unpaid
   • what reference the payment needed
   • whether any court, liability order, debt proceedings, or enforcement step is already scheduled
   • exactly where to send proof of payment
   • whether they can pause recovery while the payment is traced

5. Send proof in writing the same day.
   Attach copies or screenshots of:

   • the notice
   • the bank transaction or payment confirmation
   • the payment reference used
   • any message from the third party that was meant to pay
     Ask them to confirm in writing whether recovery is paused and what happens next.

6. If a third party was meant to pay, press them for proof and correction.
   In the UK, a mortgage escrow arrangement for Council Tax is uncommon, but a lender, budgeting service, payment service, payroll deduction scheme, or agent may still be involved. Ask them for:

   • the date, amount, payee, and reference used
   • confirmation that they paid the correct council or Land & Property Services account
   • urgent reissue or correction if they used the wrong reference or sent the money to the wrong place
   • written confirmation of what they have done

7. If the notice mentions court, a summons, a liability order, debt proceedings, or enforcement, treat it as urgent.
   Contact the council or Land & Property Services before the date shown on the notice. Ask what would stop the matter progressing while the payment is traced, such as proof of payment, a corrected allocation, or an affordable temporary arrangement.

8. If enforcement agents or debt collection are mentioned, speak to the authority as well as the collector.
   Ask whether a liability order, judgment process, or enforcement referral has already happened. Ask what evidence they need to pause, recall, or review the case while the missing payment is investigated.

9. If you cannot pay the amount right now, say that clearly.
   Ask about Council Tax Reduction, local support, hardship options, or a payment arrangement. If the notice is for Northern Ireland rates, ask Land & Property Services about your options for dealing with the arrears.

10. If the third party is a regulated financial firm, save the complaint for after the immediate risk is paused.
    First stabilise the Council Tax or rates account. Then use the firm’s complaints process if their payment failure, wrong reference, or delay caused fees or recovery action.