TV Licensing pays compensation over threats of a fine

TV Licensing has paid £250 to Peter Troy, of Rushyford, Country Durham, to compensate him for the stress they caused him after his mother's death. After his mum passed away, he was repeatedly pressed to pay for a TV licence for her empty property. Even after he explained the situation he was threatened with a fine.

So how did he get this compensation, and how common is this sort of problem?