Date of board 23rd November 2016 approval: Date for review: November 2019 1.0 Our intentions Through this policy we will aim to: ensure that all those in arrears are treated equally whilst recognising that each tenant is an individual; minimise the arrears owed by current tenants; maximise the take up of housing benefit; ensure that tenants have access to specialist advice where appropriate; minimise bad debts for former tenancies; and maintain links with our local authority partners by keeping regular contact with housing benefit depts. 2.0 Equality & Diversity We will ensure that no person receives less favourable treatment on the grounds of race, ethnic or national origin, religion or belief, sexuality, physical ability or marital status and age. We will ensure that we understand the individual circumstances of each tenant and give appropriate advice. Where we are aware that a tenant has difficulty in understanding the seriousness of the situation we will do our best to ensure that letters are sent in an appropriate format and that tenants are encouraged to have an advocate with them when we are visiting. We will use a combination of letters, visits and telephone contact to ensure that tenants are able to understand the issues. If we are aware that English is not the tenants first language and that there is no-one in the family who can provide a translation, we will, wherever possible, arrange for any legal documents to be translated and an interpreter to be present if required. 3.0 Minimising Arrears GCHA will ensure that tenants have a variety of methods by which to pay their rent. These methods will be regularly reviewed to ensure that tenants have up to date methods by which to pay their rent.
3.1 3.1.1 Methods of Payment Standing Orders/Direct Debit Tenants who have access to bank accounts will be encouraged to pay by Direct Debit or Standing Order. These payments must be made monthly in advance and be adequate to cover the current charges plus any outstanding debt. If tenants cannot immediately pay to bring themselves into monthly payment in advance, we will calculate a figure that will achieve this within 12 months. 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 4.0 4.1 Allpay All tenants will be issued with an Allpay card and a variety of payment methods are available using this system. You can pay at a bank, post office, some local shops and by telephoning the office where our staff can take a rent payment. You can pay at post offices and local shops. You can also telephone the office and make a payment using CALLPAY. Internet Banking This is available through Allpay Credit Cards/Debit Cards This is available through Allpay although tenants are advised that if using this method they will incur an additional charge from the credit card company. Cheque Cheques made payable to GCHA Ltd can be accepted but any costs incurred by GCHA due to the cheque not being honoured by the bank will be passed on to the tenant with and additional charge of 10% for administration costs. Cash We do not accept cash at the office. If you want to pay by cash, you should do so at a bank or post office. Arrears management GCHA will ensure that prompt action is taken to recover any debts and will treat each tenant as an individual. Home visits In an awkward situation people feel less intimidated in a home environment. Many tenants find getting to the office difficult. Some tenants may have language or literary problems that make dealing with letters difficult. GCHA will visit a tenant to discuss arrears if it is requested. At least two attempts will be made to contact any tenant who has not responded to any letters.
GCHA will carry out early evening visits on request if there is no other time available to meet. 4.2 Warning letters It is the tenant s obligation under their tenancy agreement to pay any charges properly due for the property. GCHA will remind the tenant of his/her obligation by letter as soon as it becomes obvious that there is an arrear. Rent accounts are monitored on a weekly basis. If there is no improvement, within one week a second letter will be sent. This will continue until the arrears are equal to or more than 5 weeks rent. Each initial letter will be accompanied by advice on where to seek more specialist advice and help and the offer of a home visit. 4.3 Notice of Seeking Possession/Notice to Quit GCHA will serve a Notice of Seeking Possession or Notice to Quit if it has proved impossible, despite its best efforts, to make an arrangement to clear a debt and where arrears are equal to 5 weeks rent. GCHA will serve a Notice of Seeking Possession to protect its own interests immediately any adjustment is made to the account that puts it more than 5 weeks into arrears. GCHA will serve a Notice of Seeking Possession if an arrangement made with a tenant is broken. GCHA will use any combination of grounds at its disposal when taking arrears action, including grounds giving mandatory possession if it is necessary. 4.4 Arrangements We will make arrangements with tenants that are realistic but expect that tenants will usually repay any debt owed to the Association within 12 months. When making arrangements we will take other outgoings into account but will emphasise the importance of ensuring that the home is paid for and the possibility of re-scheduling other debts. Tenants will always be informed how they can get access to specialist advice where they are having problems with debt. 4.5 Court Proceedings There will be a small proportion of those in arrears who do not respond to a
Notice of Seeking Possession and whose arrears continue to increase. GCHA will instigate court proceedings immediately on expiry of a Notice of Seeking Possession if the arrears have continued to increase and/or no arrangement has been made to clear the outstanding debt. We will also instigate court proceedings at any time during the validity of a Notice of Seeking Possession if an arrangement to clear the arrears is broken. We will continue to seek an arrangement with the tenant but will not itself withdraw from proceedings once started, unless the debt is cleared. It is important that tenants are aware of their rights to appear in Court and they will be encouraged to do so. 4.6 Court Costs GCHA recognises that court proceedings are expensive and costs can only add to the tenant s problems but if court proceedings are instigated then the costs will be recovered from the tenant. Wherever possible, we will seek to minimise the financial burden on the tenant by preparing the court papers and representing itself. A tenant may appeal against the association recovering the costs and a copy of our complaints and appeals policy is available on request. 4.7 The Court Order There are many options available to the Courts when granting an order for possession including possession forthwith; possession in 28 days; and possession suspended on agreement to pay GCHA will seek the remedy from the Court that it deems appropriate to the circumstances of the case at the time of the hearing. 4.8 Eviction There will be a small minority of those tenants taken to Court who either still fail to make an arrangement or break the terms of the Court Order The CSM will write to all tenants threatened with eviction in a final attempt to make an arrangement to pay and will agree an appropriate course of action with the CSM and record the same.
The Operations Director and the Managing Director will authorise any request for eviction. The association will not itself withdraw from any eviction proceedings unless the debt is cleared but will inform any tenant who makes contact how to lodge an appeal. The association will prepare the Court paperwork and represent itself if an appeal is lodged, where appropriate, in order to mitigate the costs to the tenant. 4.9 Welfare benefits GCHA recognises that many of its tenants are reliant on benefit for part or all of their income. We will encourage tenants to maximise their income through the prompt claiming of benefit and will liaise with other parties where appropriate. However, any claim is a private matter between the authority and the claimant for which the claimant must take ultimate responsibility. GCHA will continue to take action against any tenant until a debt is cleared. We recognise that benefit is generally paid four weekly in arrears. All tenants will be encouraged to pay the housing element of their benefit paid directly to GCHA to enable accurate monitoring of any outstanding debt. Action will be taken against any tenant where the debt is greater than 6 weeks. 5.0 Access to specialist advice GCHA recognises that some tenants will have multiple financial problems and other issues and will endeavour to ensure that they receive appropriate advice that will enable them to cope financially in the long term. 6.0 Appeals and accountability A tenant has the right to appeal against any decision we make. A copy of our appeals procedure is available on request. Our policy will be made available on request to any applicant, tenant or member of the public. We will review the policy on a regular basis. At least every 3 years and immediately there is any change in statute that may affect the policy.
7.0 Monitoring ARREARS MANAGEMENT POLICY AND PROCEDURE The management team will consider performance on a monthly basis. The Operations Director/Managing Director will review any cases where authority to evict has been requested. The board will receive reports on the association's performance against its targets at each meeting.
Appendix 1: Rent arrears procedure Fundamental ARREARS MANAGEMENT POLICY AND PROCEDURE All rent arrears management needs to take place every week as a minimum. This does not preclude you from doing additional work during the week. If a tenant phones about another matter check their rent account whilst talking to them. If they are in arrears ask what arrangements are in place and if there are none make one according policy. Week Action by CSM Comments 1 week Arrears 1 2 weeks Arrears 2 Send a gentle reminder by letter Further reminder letter will be sent and diary a visit for the CSM for that week if possible. 3 weeks Arrears 3 4 weeks Arrears 4 5 Weeks Arrears 5 Covering letter for If claiming housing benefit, then check whether or not the tenant has submitted details/and or needs help to complete their application. If arrears still rising and no agreement or contact made issue third letter which refers to the previous reminders. If arrears still rising, then this letter must be sent threatening NOSP unless the arrears are cleared in full (or substantially reduced i.e. to one week/month or under. Advise tenant how they can pay and when, to contact us and make reasonable effort to try and get the debt cleared. This is the first action for monthly tenancies although it is recognised that this letter may not be sent out until the 5 th week. Issue NOSP/NTQ where appropriate with effect from the following Monday for 28 days. If the tenancy is monthly this will be the first sign of arrears. A letter will be sent giving 7 days to clear the debt before proceeding with 5-week action. NTQ & NOSP for AST tenancies
NOSP ARREARS MANAGEMENT POLICY AND PROCEDURE CSM to hand deliver and make arrangements if tenant is in. 6-7 weeks CSM to try and establish contact/make an arrangement and clear debt. 8 weeks Arrears 6 advising court action 9 weeks Arrears 7 Court referral 10 weeks Arrears 8 Notification court date. of Letter advising that court action will be taken if no contact/debt not cleared. Letter advising application is being made to the court. CSM to submit court papers (this includes raising a cheque for the fee) CSM to carry out When we receive the court hearing date we will write again with an appointment to see your Customer Services Manager to discuss how to clear your arrears. Court date CSM to carry out court appearance. At court, if you have made an arrangement to clear your arrears and kept to it we will ask for a suspended possession order. This means we have permission to evict you but will not while you keep to your arrangement. 12 Warning of Eviction 13 Apply for eviction If payments are broken at least one warning letter should be sent, giving a weeks notice to bring payments up to date before we apply for an eviction. If no payment apply for eviction. Prepare summary report for Operations Director to be countersigned by M.D. 14 Eviction date When notified of eviction date we will write advising tenant what to do on the day of eviction. Also advise that a tenant has the right to appeal for a stay of execution. 15 Eviction Unless a judge suspends the order or the arrears are cleared in full GCHA will evict the tenant.