Daventry District Cuncil Crprate Debt Plicy April 6 th 2014
Reprt Reference: SG.160212/9 Page 53 Intrductin The key aim f this plicy is t ensure a prfessinal, cnsistent and timely apprach t the recvery f the Cuncil s debts. The scpe f the this plicy is t cver the fllwing debt types: Cuncil Tax Natinal Nn-Dmestic Rates Husing and Garage Rents Husing Benefit Overpayments Sundry Debts (including cmmercial rents) Debt Cllectin Issues This plicy takes int accunt the fllwing issues: Each debt type has a different enfrcement methd i.e. in terms f the recvery methds that can be legally emplyed and the curt the debt is referred t. Nt all debts are held n the same cmputer systems. In this respect husing benefit verpayments and sundry debts are held n different systems than the ther debts. Where multiple debts are invlved there may be cmpeting demands ver which debt shuld get pririty. This decisin cncerning relative pririty will be determined by reference t:- The stage in the recvery prcess reached when the multiple debts are identified. The ease f cllecting the debt in terms f infrmatin needed t pursue a debt and the legal prcesses required. In this respect the legal prcesses are mre rapid and mre effective when pursuing debt via the Magistrates Curt than the Cunty Curt. The age f the debt. The mre recent the debt the mre likely the debt is t be recverable. The impact n the debtr if the debt is nt paid. The debt with the greater impact n the incme raising pwers and crprate perfrmance f the Cuncil. The statutry limit set n the amunt f debt that can be recvered.
Reprt Reference: SG.160212/9 Page 54 The fact sme debts are cumulative and sme are finite. The preference f the debtr. The cmputer systems and databases cannt be autmated t check fr multiple debts therefre multiple debts can nly be checked manually, accunt by accunt, between the different systems. Data Prtectin can affect the sharing f infrmatin abut all debts. The resurces available t the Cuncil. The Cuncil des nt have the resurces t prvide dedicated debt cunselling and debt advisry services. Therefre independent advice agencies are referred t in crrespndence, leaflets etc. The debt plicy als aims where pssible t prmte the maximisatin f benefit entitlement t reduce the level f arrears. A wide range f payment methds is available t encurage payment. Hwever the debt plicy particularly aims t prmte cst effective cllectin methds such as direct debit that minimise the likelihd f peple missing payments and falling int debt. In the case f Husing Benefit Overpayments the apprach is currently cnstrained by the inability f the cmputer system t cllect by direct debit. These factrs prevent all debts being treated in the same way, althugh it is pssible t utline the verall purpse, aims and rights f individuals within the prcess. Debt Recvery/Anti-Pverty Statement Fr the purpses f this Statement and Cde f Practice, a debt is any mnies wed t Daventry District Cuncil that have nt been paid by the due date. The Cuncil: Cnsiders that custmers have a respnsibility t pay any mnies due and the highest pririty shuld be given t thse debts which will maintain a persn s hme and prtect their livelihd, i.e. rent, mrtgage repayments, cuncil tax and business rates. Will encurage custmers wh have difficulty in meeting payments t apprach the Revenues and Benefits Service at an early stage t discuss the matter befre debts becme unmanageable. Acknwledges the need t prvide a service that is bth efficient but at the same time takes accunt f the needs and circumstances f the debtr and will, wherever pssible, advise f any entitlement t assistance that may be available, e.g. Husing and Cuncil tax Benefit as well as general welfare benefit advice.
Reprt Reference: SG.160212/9 Page 55 Acknwledges and respects the debtr s bligatins t his/her clse dependents. Where there are multiple debts, allcatin f payment will be made in agreement with the payer, with an emphasis n addressing and reslving pririty debts first. Custmers will be prvided with full infrmatin n the stages invlved in the recvery f each type f debt and we will recmmend hw t allcate payments t ensure the best pssible utcme t clear the debt f the custmer. Hwever, we will always allw the payer the right t chse which debt they wish t pay first. We will be cncerned abut ability t pay. Where it is cnsidered that a custmer can affrd t pay the debts due t Daventry District Cuncil, they shuld be paid therwise firm enfrcement actin will be taken which may ultimately result in imprisnment, seizure f gds r lss f their hme r business. We aim t be pr-active in ur attempts t minimise debts and prvide pprtunities fr peple t maximise their incme and develp mney management skills. Recgnises the imprtance f the staff wrking with advice agencies (in accrdance with cdes f practice). Train ur staff t be helpful, make flexible arrangements fr payment, give advice cncerning the availability f discunts, benefits and basic debt advice and explain where further independent advice can be btained. Cde f Practice fr Cllecting Debts Owed t Daventry District Cuncil 1. Cntact with the Debtr The Revenues and Benefits Service will Advise debtrs in a clear and understandable way, at the earliest pprtunity, f any mnies due prviding advice and assistance in relatin t ptential benefit entitlement. Send ut all bills, rent ntificatins, benefit determinatins and reminder ntices prmptly and in accrdance with legal requirements. Encurage custmers r their representative t cntact the apprpriate sectin within the Revenues and Benefits Service as sn as they encunter a debt prblem.
Reprt Reference: SG.160212/9 Page 56 Treat custmers as individuals taking int accunt, wherever pssible, the knwn persnal circumstances f each individual. Encurage peple t pay regularly and attempt t persuade them away frm a culture f nn-payment. Keep the debtr infrmed f the actin being taken at each stage f recvery. Prvide effective supprt fr custmers with special needs by the prvisin f alternative infrmatin frmats, translatin services fr peple with language / cmmunicatin prblems, and hme visits fr vulnerable custmers and peple with mbility prblems. Staff will be trained t identify specific needs f custmers. Prvide infrmatin and advice in a clear frmat. Ensure bills, benefit determinatins, verpayment ntices, rent ntificatin letters, reminders and assciated infrmatin leaflets are accurate and understandable. Prmte cmmunicatin that is written in Plain English that is free f jargn and unnecessary technical terminlgy. Regularly review and, where apprpriate, redesign frms, letters and leaflets t ensure custmers understand the implicatins f actins we can take and the help and advice that is available t them. Prmte, thrugh psters, leaflets and letters, surces f independent advice fr debt management and maximisatin f benefits. Wrk with ther advice agencies r authrised persns acting n behalf f the debtr. Deal with all enquiries in accrdance with the Revenues and Benefits Service Custmer Prmise and Custmer Care Charter. Deal with cmplaints accrding t the Revenues and Benefits Service / crprate Cmplaints prcedure. Subject t data prtectin, share infrmatin amng sectins f Revenues and Benefits Service. 2. Cllectin and Recvery Ensure there are a clear set f prcedures fr dealing with the cllectin and recvery f mnies within the guidelines f this cde f practice.
Reprt Reference: SG.160212/9 Page 57 Prmte a wide range f payment methds that are cnvenient and accessible with an emphasis n prmting cst effective methds like direct debit (except benefit verpayments where the cmputer system is currently unable t accmmdate this frm f payment). Ensure all payments are fficially receipted and applied t relevant accunts within 24 hurs f payment. Ensure that we take prmpt and apprpriate actin t recver mney, befre debts becme unmanageable, taking accunt f entitlement t appeals and review timetables Prvide and make widely available clear and cncise infrmatin abut statutry sanctins that are used in any recvery prcess. Adhere t time limits set in the recvery prcedures Where applicable, apply the write-ff plicy f the Revenues and Benefits Service t all debts. Cmply with the Human Rights Act in the cllectin f debts due t the Cuncil. 3. Repayments Endeavur t negtiate realistic payment arrangements with the debtr Aim t clear the mst recent debt first in the case f nging Cuncil Tax, NNDR liabilities t avid unnecessary additinal recvery actin being initiated nce a payment arrangement has been agreed and maintained. Aim t clear the ldest debt first in the case f Husing Benefit Overpayments and sundry debts. Reach a satisfactry arrangement fr the payment f the debt at any stage f the recvery prcess. Hnur any agreement made t discharge debts befre escalating recvery actin. Prvide custmers with supprt t maintain payment arrangements by the use f letter, visits r telephne calls t remind them f verdue payments and by prviding a cntact pint t discuss any prblems that arise.
4. Enfrcement/Cllectin Agents Reprt Reference: SG.160212/9 Page 58 The Revenues and Benefits Service will ensure: Any third party engaged by the Revenues and Benefits Service t cllect debts will perate within the apprpriate cde f cnduct fr these bdies. Where the Revenues and Benefits Service have referred a case t Enfrcement/Cllectin agents, fficers will nt intervene with regard t the cllectin f the debt unless there are exceptinal circumstances, r such interventin as is prvided fr in the Revenues and Benefits Service cde f cnduct fr these bdies. 5. Bankruptcy/Charging Orders Cnsider the instigatin f Bankruptcy Prceedings r a Charging Order nce all ther legally available and relevant recvery methds have been explred. Ensure a checklist is cmpleted in each case t determine suitability fr this actin and t cnfirm that n ther recvery methds remain. Undertake relevant checks within the authrity including vulnerable adult checks if apprpriate. Infrm the charge payer f the intentin t cmmence this actin and what steps may be taken by them t reslve the situatin. 6. Write Off Prvisin The bjective f a write ff prvisin is t ensure that all reasnable steps t recver debt befre cnsidering write ff. An effective write ff is essential t gd recvery. It ensures bad debt is identified quickly and allws resurces t be cncentrated where mst prductive. Write ff f a debt will nly be used where all available cllectin prcesses have been attempted r cnsidered, r where there are ther circumstances. Other circumstances wuld be: Debtr deceased Inslvency Ceased trading with n assets Abscnded with n trace Remitted by the curts Statute barred Unecnmical t pursue Financial hardship
Reprt Reference: SG.160212/9 Page 59 Where these circumstances change, such that it is pssible t recver sme r all f the debt, then the debt will be written back n. Apprval fr write ffs will be as set ut in the Cuncil s Financial Regulatins. 7. Individual Vluntary Arrangements (IVA) These are alternative curses f actin available t an individual suffering frm financial difficulties but wishing t avid bankruptcy. An IVA is a frmal agreement made between a debtr and their creditrs abut hw debts will be repaid. Due t its frmal nature, an IVA has t be set up and administered by a licensed inslvency practitiner. It invlves the debtr making a repayment ffer t all creditrs. The repayment ffer can be fr part f the debt r fr the full amunt. If creditrs hlding at least 75% f the ttal debts agree t the ffer, the arrangement is apprved. The inslvency practitiner then manages the arrangement until the payments agreed have been made. If the debtr fails t keep t the agreement made in the rder any f his creditrs can subsequently petitin fr bankruptcy. Due t part repayment nly there will be write ffs that cannt be avided. These write ffs will need t be apprved befre the IVA can be agreed. Apprval fr write ffs will be as set ut in the Cuncil s Financial Regulatins. 8. Benefits/Rebates Encurage residents f the District t take up all welfare benefits available t them by the use f prmtinal campaigns. This will reduce debts payable and ensure residents have the pprtunity t access available help. Prvide guidance and assistance in cmpleting applicatin frms. Wrk with utside agencies t encurage benefit take up. 9. Custmer Care Cllect any debts due in an efficient way, taking accunt f persnal circumstances Deal with debtrs in a prfessinal manner at all times displaying curtesy and respect in accrdance with the Revenue and Benefits Team Custmer Care Charter Prvide facilities t enable custmers t discuss their debts in a cnfidential envirnment ffering assistance wherever pssible.