The Finance Ministry has played down the significance of unsigned legal letters sent by the government’s utility bills handling company to defaulters, insisting the method “is also used by tax departments”.

“The letter in reference is a formal warning for payment to late-payers. This method is also used by tax departments, advising the tax payer on the legal process that would follow if he persists in default,” a ministry spokesman said.

The issue with the letters was raised on Sunday by Labour leader Joseph Muscat, who criticised one such letter sent by the legal office at ARMS Ltd to a customer who was threatened that the company would file for a warrant to freeze his assets if he failed to pay the outstanding bill in three days.

The legal letter also came with a €12 administrative charge. However, in this case, the consumer had no pending bills.

Dr Muscat questioned the legality of the letter, pointing out that ARMS Ltd had no legal office to start with.

When asked to confirm whether ARMS Ltd had a legal office, the ministry did not reply, nor would it say how many such letters were issued.

However, the ministry questioned Dr Muscat’s motives. “The ministry wonders whether, in criticising this notice, the opposition is defending late-payers, to the detriment of the majority of consumers who settle their bills within the due time-frames,” the spokesman said.

With reference to the particular case raised by Dr Muscat, the ministry said a timing difference between actual payment and data entry into the system could have led to the computer-generated letter being issued after the consumer settled his dues. “Clearly, such issues are remedied at no disadvantage to the consumer,” the ministry said.