Issue - meetings

Corporate Debt Recovery Policy & Write-Off Policy

Meeting: 04/02/2020 - Cabinet (Item 105)

105 Corporate Debt Recovery Policy pdf icon PDF 80 KB

The Cabinet is requested to consider the agenda report and its appendix and make the following resolutions as set out below:

 

1.    That the Cabinet approves the new Corporate Debt Recovery Policy.

 

2.    That the Cabinet notes the Council’s response to the recommendations from the Money Advice Service.

Additional documents:

Decision:

RESOLVED

 

1.    That the new Corporate Debt Recovery Policy be approved.

2.    That the Council’s response to the recommendations from the Money Advice Service be noted.

Minutes:

Mr Wilding introduced the report. He explained that the council first approved a Corporate Debt Recovery Policy in 2014, which was in response to the Taking Control of Goods (Fees) Regulations 2014. This policy was refreshed in 2017 to reflect some minor amendments, and a new separate write-off policy was created. The new policy for Cabinet to consider has been completely redrafted to reflect an overarching approach, taking into account the different legislative requirements for the various council services income streams, and to incorporate the write off policy. The objective was to create a new income collection and debt management policy which was comprehensive, co-ordinated, consistent, clear and considerate especially for vulnerable people who might need additional assistance in addressing their financial affairs. The policy expresses the council’s approach for applying interest payments for late payments, embracing a fair debt collection approach, reflecting the write-off arrangements, and a new regular reporting requirement to the Strategic Leadership Team. Taking into account the Council’s approach to debt recovery, the report also sets out the positive response in paragraph 5.7 of the report to the Money Advice Service, and its ‘Stop the Knock’ campaign which made six recommendations for all local authorities to consider.

 

Mr Wilding added that the Corporate Debt Recovery policy was considered by the Corporate and Governance and Audit Committee on 23 January 2020 where members welcomed and commended the aims and approach of the new draft policy and supported the extra support for vulnerable people facing indebtedness. No amendments were made to the draft policy for Cabinet to consider.

 

Mr Wilding then clarified that although the draft policy states on page 46 of the pack that it would be effective from 1 March 2020, this would in fact be later in order to take account of the meetings cycle for the Cabinet and the Council.           

 

With reference to page 41 of the pack Mrs Taylor asked whether the council assigns debts to other organisations and what approach is taken to supporting individuals. Mrs Belenger confirmed that the council does not assign debts in that manner to receive full income and the organisations then pursues the debt. Also the Council only uses enforcement agents as a last resort. The council will always try to signpost individual to appropriate organisation that can help with wider debt management such as the Citizens Advice Bureau based at East Pallant House.

 

With reference to section 6.1 on page 51 of the pack Mrs Lintill asked whether the priorities are weighted. Mrs Belenger confirmed that each case is dealt with on an individual basis.

 

Members gave their support to the debt recovery approach.

 

Decision

 

The Cabinet then voted unanimously to make the resolutions below.

 

 

 

RESOLVED

 

1.    That the new Corporate Debt Recovery Policy be approved.

2.    That the Council’s response to the recommendations from the Money Advice Service be noted.