Sefton Council was forced to pay a local landlord £500 compensation after 'distressing and humiliating him'.
The local authority wrongly fined Mr X - whose name has been omitted for confidentiality reasons - £1,000 for unpaid council tax.
Mr X did not owe any money, and the council demanding full immediate payment from him is said to have caused him "distress and humiliation".
Mr X said he had to borrow over £1,000 from relatives.
Borough council bosses also had to apologise to the complainant after the authority was found to be at fault by the Local Government and Social Care Ombudsman.
And this wasn't the only apology Sefton Council had to make.
One such issue, reported in April 2019, involved the authority wrongly reporting a family missing.
Another saw the council fail to inform a woman there would be a charge for her mother's residential care. As a result, she received a large and unexpected bill.
To remedy this, the council agreed to apologise and cancel the invoice.
The Ombudsman investigated 74 complaints relating to Sefton Council during 2018/19 – and almost two thirds (61%) of these were upheld.
However this number is in line with the average for similar authorities.
Following the issued raised, the Ombudsman has instructed the council to review a number of its policies and procedures.
For example, the local authority has agreed to take action to ensure all staff are aware of the requirement to speak to the person before deciding whether a safeguarding enquiry is needed.
It must also identify actions it needs to take to comply with statutory guidance on arranging care home placements.
A council spokeswoman said: “Sefton Council is committed to providing the best service possible but we acknowledge that there are times when we do not get it right.
"When this happens we do our best to put things right as quickly as possible
"On some occasions people remain unhappy with our response to their complaint and they contact the Ombudsman, the number of such complaints are low but we accept that this does happen.
"The Ombudsman can find that the council has not responded as effectively as it could have and in these instances again we do our best to put things right and learn.”
