They would be daft to continue with this. I think a costs application will be in order whether they do or not.
What training do these people have? Do they actually read decisions? Even from the Chief Adjudicator who is the first port of call when it comes to review or costs applications?
What piŁŁes me off is that most people pay up without even making a formal representation. FTLA t shirt to be made in my island shortly: Kos. And video.