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Private firm will pays tens of thousands of pounds for Camden rent card mistake, says council leader

PUBLISHED: 12:13 28 April 2014 | UPDATED: 13:00 28 April 2014

Cllr Sarah Hayward. Picture: Polly Hancock.

Cllr Sarah Hayward. Picture: Polly Hancock.

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A private company contracted by Camden Council will be forced to settle the cost of a mistake which could have left thousands of tenants paying their rent into other residents’ accounts.

Camden Council leader Cllr Sarah Hayward told full council on Thursday that the company, Intercard, would pay for their bungle after sending out 10,000 swipe-style rent cards bearing the wrong barcode.

It is believed the cost of the error will run into tens of thousands of pounds.

The new rent cards were sent out last month to tenants who do not pay their bills by direct debit.

But incorrect digits on the barcode of the new cards meant payments could go into wrong accounts, according to the council.

The council sent out letters informing residents of the defective cards and urging them to destroy them.

Cllr Hayward said: “It was an outsourced contract and a failure by the private sector supplier who are picking up the cost of their mistake, the first one in 15 years.”

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