FINANCE bosses at Cherwell District Council are taking legal advice after the company which handles its council tax bills had to recall 36,000 letters.

The council is looking into compensation after the firm behind its £705,000-a-year deal to run revenues and benefit services made the error.

About half the district’s bills had to be recalled because of a faulty barcode or incorrect name and payment information.

Capita, which runs the service for the council, will pick up replacement costs.

Council spokesman Jemma Callow said: “Residents who have received incorrect information will have the first bill invalidated and a replacement bill containing the correct information will be issued shortly.”

Capita spokesman Caroline Mooney said: “Capita has taken immediate action and revised bills are being sent to customers.”