REVENUES SERVICES PROTOCOL AND GUIDANCE FOR COLLECTION OF DEBT

Transcription

1 REVENUES SERVICES PROTOCOL AND GUIDANCE FOR COLLECTION OF DEBT August 2010

2 INDEX 1.0 Scope and Purpose of this Protocol 2.0 Overview 3.0 Aims of the Policy 4.0 Statement Of Policy 5.0 Monitoring APPENDICES A B C D E F Appropriate levels of debt for recovery actions Rent arrears recovery procedural guidelines Council Tax recovery procedural guidelines Non-Domestic Rates recovery procedural guidelines Overpaid Housing Benefit - procedural guidelines Sundry Debts procedural guidelines

3 1.0 Scope and Purpose of this Protocol 1.1 This purpose of this protocol is to set out the standards by which South Cambridgeshire District Council will adhere in order to ensure a fair, consistent and effective collection function. The protocol is intended to ensure that the collection of debts is conducted in accordance with recognised best practice in the following areas: Debt collection. Audit controls 1.2 The policy applies to all debts owed to the Council and in particular the following categories of debt: Council Tax. Non-Domestic Rates. Housing Rent and former tenant arrears. Overpaid Housing Benefit. Sundry Debts. 2.0 Overview 2.1 The Council has both a statutory and fiduciary duty to ensure that all money that it is owed is collected promptly whenever possible, and recognises that prompt, firm but fair action is essential in ensuring an efficient and cost effective collection function. In addition, the Council is committed to preventing customers from getting into debt, and promotes early intervention to avoid unmanageable debt levels. 2.3 The legal processes for recovery of each of the above are governed by the following legislation: Council Tax (Administration and Enforcement) Regulations 1992 Non Domestic Rates (Collection and Enforcement) Regulations 1989 Housing Act 1997 & Social Security Administration Act 1992 For the purpose of this policy these will be referred to throughout the policy as the relevant legislation. Procedural guidelines for the recovery of each type of debt can be found in the appendices. 2.4 All reasonable and economical action should be taken to collect monies owed to the Authority. The degree of enforcement action attempted should be proportionate to the amount owed and the customer s personal circumstances. Guidelines to the appropriate actions are contained in Appendix A. 2.5 In practice the feasibility of debt collection will be influenced by a great many factors such as the amount that is owed, type of debt, the whereabouts of the debtors, the cost of enforcement action and the likelihood of successful collection. In view of the wide range of factors this protocol can only seek to establish a broad outline to the processes to be followed when collecting a

4 debt. In reaching a decision on how best to proceed, the officer must give consideration to this guidance and exercise their professional judgement. 3.0 Aims of the Policy 3.1 This policy aims to ensure that we: Have an emphasis on prevention of debt, with positive actions such as income maximisation advice and by providing a range of accessible payment methods Take swift enforcement action against deliberate non-payers of those who delay payment Work with our customers to help them to pay any monies owed, taking into account their personal circumstances, and to ensure that they are clearly informed of the consequences should payment not be forthcoming Work together with local advice agencies to ensure that our customers have timely access to independent debt advice 4.0 Statement Of Policy 4.1 South Cambridgeshire District Council will: Consider that every customer has a responsibility to pay Aim to identify those who can pay against those who may find it more difficult and take recovery action accordingly Acknowledge the need to provide a service that is effective yet sensitive to the individuals needs Actively encourage contact at every stage of the collection and recovery process. 4.2 Where customers fall into arrears, we will: Initiate recovery action in a timely manner in accordance with the relevant legislation Make clear the consequences and relevant sanctions associated with non-payment, including any costs or fees that may be incurred Ensure that payment arrangements reflect the ability to pay rather than the level of debt owed Request relevant personal and financial information to allow an accurate assessment of the individuals financial circumstances and their ability to pay Acknowledge and respect a person s obligations to his/her dependants and recognise the need to maintain a reasonable standard of living Not take the next step in the recovery process if agreements are being met Take into account any other monies owed to the Council when making payment arrangements Make referrals to local advice agencies where multiple or large debts exist Give consideration to all available remedies, taking into account the circumstances of the individual(s)

5 4.3 We will provide clear information about bills and liabilities. These will be issued within a reasonable timescale and in accordance with the relevant legislation. The information we provide will show: What the bill or liability is for The amount due How to make payment A contact point for enquiries 4.4 In addition, we will also: inform people of their entitlement to benefits, discounts, reliefs and exemptions where appropriate, advise people of other help and advice available such as independent advice agencies offer a range of accessible payment methods, including Direct Debit, Debit Card, Internet payments and Electronic Card payments such as Post Office cards, as a minimum ensure that customers are aware of every way they can make contact, eg telephone, letter, and office visits 5.0 Monitoring 5.1 In order to ensure the effectiveness of this policy, the Council will monitor performance taking into account the indicators: collection rates number of cases at certain stages of recovery number of cases being passed to external bailiffs number of possession hearings number of evictions number of complaints received where policy is not being followed

6 APPENDIX A Appropriate levels of debt for recovery actions Action Debts Over None < 5.00 Issue of a bill or invoice 5.00 Issue of a reminder or final notice Issue of a liability order summons Application for a liability order (excluding costs) Referral to bailiff (Council Tax) Referral to bailiff (Non-Domestic Rates) Referral to debt collection agency Application for County Court judgement (excluding former tenant arrears) Enforcement of County Court judgement (eg, issue of distress warrant, attachment of earnings etc) Application for County Court judgement in respect of Housing Benefit Overpayment Referral to High Court Sheriff (sundry debts & former tenant arrears) Application for committal to prison (Council Tax & Non-Domestic Rates) Application for charging order (Council Tax) 1, Attachment of earnings order (Council Tax) Deduction from Job Seeker s Allowance or other benefits Insolvency proceedings Reminder letter (Rent) Notice seeking possession (Housing Rent) higher of: 4 Weeks rent or 200 Possession proceedings (Housing Rent) higher of: County Court proceedings (former tenant arrears) Enforcement of County Court judgement (former tenant arrears) (eg, issue of distress warrant, attachment of earnings etc). 4 Weeks rent or Weeks rent or Weeks rent or 200

7 APPENDIX B Rent Arrears Recovery Procedural Guidelines 1 to 2 weeks in arrears Reminder Letter issued 2 to 3 weeks in arrears Pre-NoSP Letter to be sent, to include a financial statement for completion 4 to 6 weeks in arrears Notice of Seeking Possession to be served 8 to 12 weeks in arrears Housing Officer to visit where appropriate to determine situation 10 to 14 weeks in arrears Possession Proceedings to commence Possession Hearing (Subject to Court timescales) Suspended Possession Order (subject to court timescales) Possession Granted (subject to Court timescales) 2 weeks in arrears on SPO Tenant contacted by letter / telephone 4 weeks in arrears on SPO Visit by Housing officer where appropriate Issue Eviction Warrant (subject to Court timescales) Eviction warrant suspended Subject to payment order 2 weeks in arrears on suspended warrant Evicted

8 APPENDIX C Council Tax Recovery Procedural Guidelines Reminder Summons Liability Order Payment arrangement Attachment of Earnings Bailiffs Attachment of Benefit Bankruptcy Committal Charging Order

9 APPENDIX D Non-Domestic Rates Recovery Procedural Guidelines Reminder Summons Liability Order Bailiffs Insolvency Committal

10 APPENDIX E Overpaid Housing Benefit Recovery Procedural Guidelines Invoice Reminder Letter before action Application for an Order to allow enforcement of a decision Charging Order Attachment of Earnings Warrant of Execution High Court Enforcement (over 600)

11 APPENDIX F Sundry Debt Recovery Procedural Guidelines Invoice 1 st Reminder 2 nd Reminder Letter Before Action County Court Summons County Court Judgement Charging Order Attachment of Earnings Warrant of Execution High Court Enforcement (over 600)