FEAR and suspicion ran through the borough after 17,000 residents received letters from Waltham Forest Council accusing them of council tax fraud.
The Guardian was swamped with calls from distressed residents, many elderly and widowed, who received letters threatening to cut their single person's council tax discount.
Many distraught residents beseiged the council's offices and its Waltham Forest Direct phone lines were inundated with calls.
Residents were told in the letter: "We have cross checked our records and they show that you are no longer the sole occupant. Your single person discount will be stopped unless you complete and return the enclosed form by January 25."
A council spokeswoman would not reveal what information and records had been used for the secret checks, but confirmed that copies of the same letter had been sent to all of the 17,000 people claiming the 25 per cent single person's discount.
The move follows a major drive by the council to crack down on council tax dodgers. Clyde Loakes, leader of the council, refused to give the Guardian a comment to answer residents' concerns.
Iris Bradberry, 87, a widow from Chingford, was stunned by the letter. She lost her husband to cancer in 2002 and has lived alone ever since.
Mrs Bradberry said: "I'm an irate resident. At first I wondered what records and information they were talking about.
"It made me think that someone had got it in for me and was trying to cause trouble. I think the tone of the letter is disgraceful."
Problems with the council's switchboard added to the misery of many stunned residents, including Mrs Bradberry, who were unable to get through to Waltham Forest Direct.
She said: "I've sent my form back and I'm hoping that will be an end to it.
"There's a lot of people who would have panicked and some who will not be able to get the forms back in time. What will happen to them?"
Another Chingford resident, 69-year-old Seymour Moss, was angered by the letter's tone and found the council's computer system was unable to accept his query by email.
Mr Moss told the Guardian: "I've lived alone since my wife died 15 years ago. The letter came out of the blue and there was no clue that it had been sent out to so many others.
"My first reaction was to question whether someone who had wanted to cause problems for me. I am appalled that so many people have been caused so much distress."
Cllr Keith Rayner, cabinet member for corporate services, said: "This was a standard letter, sent as part of a regular review of those who claim council tax discounts for single person households. By law we must carry out this review.
"We apologise if the letter has caused distress to anyone who received it. This was certainly not our intention."
He added: "It is good practice to make regular checks on the status of people who claim council tax discount for being a single person household since the numbers of people claiming single person discounts has a direct effect on the level of council tax increase."
Anyone who would like more information should contact Waltham Forest Direct on 8496 3000 or 020 8496 8382.
