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A4V process
Hi there, we are beginners and in the process of discharging our council rates and have followed the A4V process.
Our money order was returned by the council with a letter stating they do not accept money orders etc. We sent it back with a notice of demand for further and better particulars. The money order wasn’t returned but we received a Rate Remainder Notice. We sent the Default Notice, they sent us a Final Rates Notice and we responded with our Final Notice all in the required time frames set out in the process.
We have just received a Council letter stating that our offer of payment by money order is not accepted……. your account remains overdue; and interest is accruing; and appropriate recovery action will continue in accordance with the provisions of the Local Government Act 2009 etc etc: and that no further correspondence will be entered into regarding the matter etc etc. They have not returned our money order.
As this is the first time that we have tried discharging debt we are unsure where to go from here. We know we need to hold our position, they’ve kept the payment etc. Should we respond to the last letter or wait to hear from them again?
Any advice would be greatly appreciated! Thank you
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1 Reply
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Hi Jane,
My understanding is that based on the Bills of Exchange Act 1909 Sections 47 and 48, if the payee refuses to accept a valid payment, then the payment is dishonoured. The payer no longer is liable for the payment. Therefore, the council sending you a notice stating that it refuses this payment and continues to pursue you for the liability is in commercial dishonour. You should stand your ground and thank them for the notices of payment, informing them that this constitutes them dishonouring the payment and therefore you are no longer liable. If you have a default and liability clause, you may go and refer them to the clause and state your remedy holds if either party seeks to pursue this in a settlement or court.
God bless,
Brian