Understanding Your Rent Account: Credit Balances
Southend-on-Sea City Council has clarified why they look into rent accounts with large credit balances.
Shaun Dutton, the Council's Counter Fraud & Investigation Manager, explains these checks are a routine part of their efforts to prevent tenancy fraud: "The Counter Fraud & Investigation Team routinely inspect the circumstances of tenants with rent accounts in credit of over £1,000," he said.
"We recognise that some tenants have a legitimate reason to maintain a credit balance on their rent accounts, for example those that have an irregular income."
Mr Dutton continued: "If we have no concerns about the origin of the money in the rent account, we conduct a courtesy visit to let the tenant know that the money is there and how they might be able to get a refund if they so wish,"
The Council is very clear about one thing: "Obviously, if they are keeping the money in the account to hide it from the Department of Work & Pensions (DWP), that is an offence and I do not visit the tenant but report the matter to the DWP". This means that using your rent account to hide income from the DWP to affect your benefits is against the law and can be considered money laundering.
Lauren Anderson, from South Essex Homes, added, "While tenants are entitled to maintain a credit balance on their rent accounts if they choose to, this is acceptable provided it is not being used to conceal income or manipulate benefit entitlements."
Mr. Dutton wants to reassure tenants: "if the funds are legitimate, tenants have nothing to worry about. The courtesy visit is nothing more than that and it immediately precedes the closing of the case."
In short, if you have a significant credit in your rent account and the money is from a legitimate source, you don't need to worry. The Council is simply carrying out its duty to ensure fairness for everyone.