Tauranga City Council staff have pulled 2,262 incorrect rates arrears notices out of the Hamilton Mail distribution centre after people started complaining about them.

The council started checking their system after 12 people called to complain in one day.

Tauranga City Council staff have recalled 2,262 incorrect rates arrears notices.

The calls were from people that had paid their rates in full, yet still received Rates Penalty Statements.

City council communications manager Aimee Driscol says the council has sent out statements with incorrect penalty calculations, but the totals are correct.

The processing error is in three parts:

*Rate penalty statements have been sent when there is no outstanding amount, the total shows as a zero balance due.

*The split amount between penalty and balance have been rounded, creating a one-to-two cent variance. The balance owing is correct.

*The penalty amount is incorrect and therefore the split amount is incorrect, the balance owing is still correct.

Mail centre staff are in the process of tracking and removing the letters.

'We will know later today how many we have been able to retrieve,” explains Aimee. 'We can confirm 500 letters have already gone out.

'We are going to send an apology letter with a revised rate penalty statement to those in scenario three above.”