Debt Relief Under New Japan Financial Protection Laws

Transcription

1 Crprate Debt Plicy Versin 4 December 2015 Review date December 2017

2 Crprate Debt Plicy Plicy statement Crby Brugh Cuncil is cmmitted t the effective and efficient recvery f mnies wed in rder t maximise its incme and reduce the amunt f utstanding debt by taking psitive steps in its apprach t recvery and Enfrcement and by taking a tugher stance with thse debtrs unwilling t pay. The cuncil is cmmitted t treating peple fairly while cllecting incme that is due. 1. Backgrund/Intrductin The Directr f Crprate Services has respnsibility under Sectin 151 f the Lcal Gvernment Act 1972 fr the administratin f the financial affairs f the Cuncil, ne such area relates t the cllectin f mnies due t the Cuncil. Crby brugh Cuncil levies charges fr a variety f services and is respnsible fr the cllectin f lcal taxes. It is inevitable that the cuncil will be required t pursue the recvery f arrears frm persns and business fr a variety f reasns. This plicy has been created in rder t frmalise statutry requirements and best practise. And have an agreed plicy f hw the cuncil manages and cllects debts t ensure cnsistency and fairness in such situatins. The plicy has been made with cnsideratin and inclusin f the fllwing: Cllectin f cuncil tax arrears gd practice prtcl agreed between LGA and CAB July 2009 Can t pay? Wn t pay? Fcus reprt LGO Octber 2011 Natinal Standards fr Enfrcement agents - Ministry f Justice January 2012 This plicy applies t the cllectin f: Cuncil Tax Business rates (NNDR) Sundry Debts including Cmmercial rent There are specific rules, regulatins and legislatin which gvern the enfrcement and cllectin f these debts, which are dealt with individually within the plicy. 2. Plicy Objectives A cnsistent apprach t debt recvery will be taken, this will ensure that all debtrs are treated equally, that all debts are cnsidered crprately and that recvery actin is prprtinate t the amunt and surce f the utstanding debt. T have a clear crprate apprach t debt that is backed by Cuncillrs and senir managers and that has clear links t ther crprate pririties T raise the prfile f debt recvery by increasing fcus and by taking a tugher stance with thse unwilling t pay. 1

3 The Debt Team will use all methds at its dispsal including the use f Trace Agents, Enfrcement agents, cllectin agents, curt actin, litigatin and cmmittal, t ensure the effective and efficient recvery f debt. T maximise debt cllectin T ensure peple are supprted t claim benefits/disregards they may be entitled t. T ensure that the prtcls fr gverning the use f Enfrcement agents are clearly set ut and available t all wh need t access them. Recvery actin, including the prvisin f advice will be initiated within statutry perids r as sn as practible. All letters/ s will be clear and give telephne numbers f the recvery team and where t btain advice. Team and individual targets n recvery will be set and regularly reviewed; these will be linked directly int the Emplyee Develpment Scheme fr thse staff cncerned. Staff will be cmprehensively trained in all aspects f their duties with nging training as and when required. 3. Assessment f ability t pay and hierarchy f debt Where custmers we mre than ne debt t the Cuncil, cnsideratin will be given t the hierarchy f debt in rder t identify pririty debts, such as Cuncil tax, ther dents (except rent) will be cnsidered f a lwer pririty. Enfrcement actin fr recvery will be taken where payment f debts wed t the Cuncil is nt secured at an amunt agreed between the cuncil and the debtr. The needs f custmers will be taken int accunt and particularly where it is identified that custmers may be vulnerable, fr example, persnal visits, assistance in filling in frms, liaisn with relevant supprt agencies. Each case f vulnerability will be cnsidered based n individual circumstances; all infrmatin gathered will be nted n accunt if relevant. The Recvery & Custmer First Manager will need t authrise the use f enfrcement agents in cases f Bankrupt individuals by cmpleting a checklist (see appendices) and nte accunt accrdingly. The Cuncil in pursuing debt recvery will act in accrdance with statutry regulatins. Where custmers are able t pay we will advise n hw t pay and the fllwing methds are available: Cash/cheque/card in persn at the One Stp Shp, The Cube, Gerge Street, Nrthants, NN17 1QG, Mnday Friday 8.30am t 5.00pm. Direct Debit In Persn at the One Stp Shp r telephning , 1 st, 7 th, 16 th and 28 th f each mnth Cuncil Tax nly 1 st f each mnth NNDR nly Autmated telephne payment line 24 hurs Internet/telephne banking yu shuld cntact yur bank and arrange t pay Crby Brugh Cuncil, Srt Cde , Accunt number , please qute yur Cuncil tax, NNDR r invice number f the accunt yu wish t be credited. Standing rder yu shuld cntact yur bank and arrange t pay, Crby Brugh Cuncil, using the details abve. Fr custmers wh are unable t clear the debt r bring their accunt up t date, an arrangement will be made fr payment by instalments, this will be mnitred and prvided 2

4 the arrangement is adhered t n further actin will be taken, hwever if the arrangement is defaulted upn further recvery actin will take place. Where the need is identified, an assessment f the custmer s ability t pay, incmings and expenditure will be cnducted t aid debt recvery. We will where pssible identify unclaimed benefits. Arrangements fr repaying debt will be agreed that an individual s indebtedness t the Cuncil des nt wrsen, in practice this may mean ensuring that the current r mst recent accunt is cleared, while making the maximum cntributin t clearing debts with the financial year. Fr thse wh can t pay we will advise what happens and the cnsequences f nn payment, we will infrm and encurage them t get help /advise where apprpriate. 4. Irrecverable debts The Cuncil recgnises that nt all debts are cllectible and therefre it will be apprpriate in certain circumstances t classify debts as irrecverable, where determined criteria are met. The cuncil will satisfy that ne r mre f the fllwing apply befre writing ff the debts. All apprpriate recvery methds have been exhausted. The debt is unecnmical t pursue The amunt is uncllectible due t bankruptcy r inslvency (certain rules will apply if the accunt has been issued t an enfrcement agent (bailiff) prir t bankruptcy, checks and authrisatin and sign ff by Recvery & Custmer First Manager t cntinue are required and nted n accunt reasn fr pursuing) The debtr has abscnded and cannt be traced The debtr is deceased and has n estate It is nt in the best interests f the Authrity t pursue. All write ff cases will be reviewed and actined by the Recvery & Custmer First Manager, a reprt will be prduced fr sign ff and authrisatin by the Directr f Crprate Services, a cpy f this will be issued t the Accuntancy sectin fr recnciliatin. 5. Prcedures fr using Enfrcement agents The Cuncil will appint Enfrcement agents t recver debt n its behalf where necessary. Where it des, the Cuncil will apply prcedures t ensure Enfrcement agent perates t the highest standards. The Enfrcement agent cmpanies that the Cuncil use abide by the Natinal Standards fr Enfrcement agents and civil enfrcement assciatin guidelines and cde f practice. The Cuncil has the ability t recver debt thrugh a number f statutry remedies, including pwers which impact n a persn s pssessins; the cuncil will pursue the mst apprpriate remedy available t it in any given circumstances. The Cuncil will nrmally cnsider engaging Enfrcement agents t assist with the recvery f utstanding debt in cases where ther recvery actins have failed r are nt cnsidered apprpriate. This relates t Cuncil Tax, NNDR and Cmmercial Rent. If any Enfrcement agent cmes acrss vulnerable peple, they shuld cntact the cuncil straight away in rder that alternative recvery actin can be cnsidered. The Recvery & Custmer First Manager will need t authrise the use f enfrcement agents in cases f Bankrupt individuals by cmpleting a checklist (see appendices) and nte accunt accrdingly. Recvery staff will have n line access t debtr s recrds held by the Enfrcement agent cmpany in rder t check prgress, infrm f any changes and audit accunts. 3

5 Cmplaints r disputes regarding Enfrcement agent actin will be mnitred in rder t ensure that actin taken is apprpriate. Where apprpriate, Enfrcement agents may be asked t withhld actin in rder that: Disputes r appeals regarding benefits r charges may be reslved Advice agencies may deal with debt prblems Alternative recvery actin may be taken including the negtiatin f arrangements fr payment. Cmplaints received frm the Lcal Gvernment Ombudsman. Where apprpriate, Enfrcement agents will be requested t return cases t the authrity when: A case has been issued t the Enfrcement agents in errr Full payment including any Enfrcement agent csts have been made direct t the authrity fllwing referral t Enfrcement agents An alternative recvery ptin is identified which is cnsidered mre apprpriate. Further actin is cnsidered inapprpriate due t persnal circumstances f the taxpayer r ratepayer. Meetings will be undertaken with Enfrcement Agent representatives t discuss imprvements and service delivery. Liaisn will take place utside these meetings as and when the need arises if there are issues regarding Enfrcement agent actins. Debtrs can cntact the Enfrcement agent cmpany direct regarding cmplaints against Enfrcement agent behaviur r fees, if they prefer they can cntact the cuncil direct. If the cmplainant is dissatisfied with the respnse received they shuld use the Cuncil s frmal cmplaints prcedure, available n the cuncils website r cntact the cuncil direct n Recvery prcedures after a demand ntice (Bill) - Cuncil tax and NNDR All instalments are due n the 1 st f each mnth unless the accunt is n direct debit, if an instalment is missed a reminder ntice will be issued within that mnth, if the arrears are paid in full within 7 days, n further ntices are issued, if they fall int arrears again within the financial year a secnd reminder ntice is issued. If a custmer is unable t pay the arrears n a reminder r secnd reminder ntice within the 7 days a final ntice is issued. At all recvery stages arrangement fr payment may be put in place, emplyment details are required fr all liable parties, if the debtrs fails t supply this infrmatin, an arrangement may nt be entered int. Further ntices may be issued depending n the stage f recvery up t a final ntice as these are system driven; custmers are made aware f this. If the matter is nt reslved at this stage r an arrangement fr payment is defaulted upn, a summns will be issued t advise the debtr f the Magistrates curt hearing. At this stage additinal cst f (Hw csts are wrked ut is available n will be added t the debtrs accunt, this will nt be remved unless An errr in issuing the summns has been made by the Cuncil The accunt is paid in full prir t the Curt date. An arrangement fr payment can be made at this stage, emplyment details will be required t enter int a payment arrangement; hwever the accunt will cntinue t Curt t secure the debt and the csts will be incrprated int the payment plan. 4

6 The magistrates Curt if satisfied the debt is wed will issue a Liability Order, which gives the fllwing recvery ptins available t the Cuncil under the Cuncil Tax administratin and enfrcement regulatins 1992: These are nt listed in preferred rder. Attachment f Earnings (Cuncil tax nly) Attachment f Benefits (Cuncil tax nly) Taking Cntrl f gds (Enfrcement agents) Charging Order Bankruptcy/Inslvency A Ntice f Liability rder is issued t the debtr t advise f the abve and giving 14 days ntice prir t an accunt being issued t a Enfrcement agent cmpany. Enfrcement agent Charges in line with The Taking Cntrl f Gds Regulatins 2013 SI 1894 (Fee schedule stated belw) are als included with this letter. It als states that if a payment arrangement is made and defaulted n these ptins will be cnsidered and n further crrespndence will be issued advising f this unless the time perid has been extensive since a payment r cntact was made, if this is the case anther Ntice f Liability rder is issued. It is nt within regulatins t issue a Ntice f Liability Order fr a Business rate accunt hwever we cnsider it gd practice t issue after the Curt Hearing. SCHEDULE Fees recverable under regulatin 4 Table 1 Enfrcement ther than under a High Curt Writ Fixed Percentage fee (regulatin 7): percentage f Fee Stage Fee sum t be recvered exceeding 1500 Cmpliance stage Enfrcement stage Sale r dispsal stage % % % All debtrs which have an Attachment f Earnings r Attachment f Benefits in frce are issued a letter infrming them f the actin, the attachment will nly be discharged if it has been sent in errr r paid in full. In the case where the circumstances f a debtr changes fr example change in hurs/pay r change in benefits awarded we may discharge and issue t Enfrcement agents. Shuld the abve methds prve unsuccessful, but the debt is still viable then the fllwing may be used n the prvis that the Enfrcement agents have certified that the gds are unavailable fr the value f the debt: Cmmittal letter Cmmittal summns Cmmittal hearing Warrant fr arrest Bankruptcy Prcedure Bankruptcy actin can be taken n any debt ver 750. This type f actin will usually be targeted t identify custmers wh have assets and therefre shuld be able t pay. 5

7 Due t the high csts f bankruptcy t the custmer and the difficulty in stpping the prcess nce undertaken, the fllwing checks will be dne prir t instructing slicitrs t btain a bankruptcy petitin: Full check n Cuncil Tax and Benefits t ensure we have an accurate picture f cases chsen. Any cases with benefit histry t be referred t benefits t ensure all relevant reductins have been granted. A final warning letter t be sent which includes a request fr any infrmatin which the custmer feels shuld be taken int accunt befre the bankruptcy is cmmenced. Infrmatin t be included with the Statutry Demand giving infrmatin abut the bankruptcy prcess and the high level f csts that can be incurred. Further checks t include a full Experian search t be undertaken where there is n cntact with the debtr. Further cnsideratin t be given if a debtr appears t be ptentially vulnerable. Thse wh might be ptentially vulnerable include; Elderly persns Physically r mentally disabled persns Persns suffering frm a serius r lng term illness Recently bereaved persns Single parents Pregnant wmen Unemplyed Persns wh have prblems understanding, speaking r reading English All cases fr Bankruptcy t be agreed by the Recvery & Custmer First Manager Checklist fr pursuing debtr in bankruptcy r instigating bankruptcy Charging Orders als t be cnsidered as an alternative t Bankruptcy. 6

8 COUNCIL TAX & NATIONAL NON DOMESTIC RATE Within the Cuncil Tax (Administratin & Enfrcement) Regulatins 1992, recvery details are utlined. The plicy must fllw the guidelines in the act. The flw charts indicate the prcess f statutry recvery. 7

9 COUNCIL TAX / NNDR RECOVERY FLOWCHART POST LIABILITY ORDER UNDER STATUTORY LEGISLATION R E D R O L I T Y B I A L I R E D N U S R E W O P Additinal Pwers f Recvery Attachment f Earnings Attachment f Benefit Charging Orders Bankruptcies Taking cntrl f Gds LIABILITY ORDER 14 DAY LETTER Cmmittal Actin Arrangement S E C O R P L A T M I M O C Attends Curt Lk at Incme & Expenditure Why nt paid Remitted Adjurn Sine Die n payment Or Issue Suspended Sentence n payment (Befre cmmittal actin, accunt has t be sent t Bailiff and returned) Magistrates Means Enquiry Bail Warrant Issued Bail Warrant Executed (Attends Curt) Fails t Attends Curt Fails t Issue Bail Warrant Or Warrant Fails t attend after Issue N Bail Warrant Issued L A T M I M O C Adjurned n same terms Or Suspended Sentence Enfrced N Bail Warrant Executed (Attends Curt) Fails t pay as rdered (Relisted t attend curt) Bail Warrant Or N Bail Warrant Issued 8

10 7. Recvery prcedures fr Sundry Incme invices 1 st reminders will be sent as sn as practicable after the 14 days t pay has elapsed, giving 7 days t pay Arrangements will be made n all reminders issued; the system will autmatically issue the next recvery actin if the payment arrangement is nt adhered t. After 7 days have elapsed and if n arrangement made, a secnd reminder ntice will be issued. This ntice will utline t the debtr the actin the Cuncil will take, shuld payment nt be made within a further 7 days. Each mnth reprts detailing utstanding debt are referred t the Head f each service area fr a decisin t be made whether t stp services r prgress the utstanding debt further. It is the respnsibility f each service area t d this. Meetings will be held at least quarterly CB Prperty fr Cmmercial Rent due t the size f invices raised. Cmmercial Rent accunts which are in arrears will be issued with a 14 day letter, this is gd practice and nt legislatin, advising the debtr that if they d nt bring the accunt up t date that Enfrcement agents will be issued t cllect n ur behalf. 9

11 The fllwing flw chart utlines the prcess taken via the Cunty Curt and pre litigatin ptin **** Cunty Curt actin is expensive and time cnsuming. N debt will g t the Cunty Curt unless all dcumentatin is prvided.**** 10

12 The recvery sectin will cmmence Cunty Curt prceedings as sn as is practicable in liaisn with the Legal sectin, if applicable fr the debt and requested by the service area. MULTIPLE DEBTS As Cuncil Tax and Natinal Nn Dmestic rates are "nging", it will be necessary t have regard fr the payment f these debts when cmparing multiple debt. Cntacts Any debtr can cntact the Recvery team by a number f channels these include: Face t face at The One Stp Shp Telephne call t Letter revenue.enquiries@crby.gv.uk Online at Cmplaints If debtrs wish t make a cmplaint regarding any aspect f recvery actin, they shuld cntact the Senir Recvery Officer using the abve cntact methds. If the cmplainant is dissatisfied with the respnse received they shuld use the Cuncil s frmal cmplaints prcedure, available n the cuncils website r cntact the cuncil direct n Appendices Checklist fr pursuing/instigating bankruptcy Natinal Standards f Enfrcement Agents January

13 BANKRUPTCY CHECKLIST FOR PURSUING/INSTIGATING DEBTORS Accunt number Name f Debtr Address Perid f charge Amunt utstanding Recvery Actin taken Date f Bankruptcy Date Issued t Bailiff Inf frm Enfrcement agent attached? Date f Birth Details f HB/CTB Details f any referrals frm CAB 12

14 etc Ethnicity (Language issues) Ntes n accunt, anything t suggest vulnerable/disability /health? Any inf n DIPS? Hme visit requested Incme and Expenditure Emplyment details Other agencies/cuncils cntacted Decisin t pursue Yes/N Reasning Authrised: 13

15 Recvery and Custmer First Manager Date 14