Recovery Policy

Collection and Recovery Policy Document - Revised November 2008

The Council is committed to fulfilling the requirements of the Local Government Acts 1988 and 1992 and any such amendments for the collection of Council Tax and National Non-Domestic Rates.

This document deals with the revenue collection for said taxes.

Council Tax

Statutory Instalments

The Council will advise all local taxpayers of their statutory right to pay by the number of instalments prescribed in the legislation whether it is the annual bill or a subsequent adjustment notice.

The Council will actively encourage payment by Direct Debit but will allow payment at its collection counters, by post, bank standing order, bank giro transfer, telephone banking and payment by Debit and Credit card. Other methods of payment will be investigated in line with changes in technology.

Non-Statutory Payment Arrangements

Payment over twelve months
The Council will on occasion allow payment over twelve months, but only if the Council Tax Payer can demonstrate that they will suffer hardship if forced to pay over the normal ten months.

Weekly Payment

Weekly payment can be made so long as it is in advance i.e. by the first day of the month the due amount for that month has been paid, but only if there are no arrears on the account.

Payment by agreement
Any variation to the Statutory Instalment Scheme must be supported by good reason. These will be individually considered and a decision given in writing. The decision will be recorded on the computer database and the account amended accordingly.

Other Payments
All other payments which do not meet the Statutory Instalments or those set out above will be deemed as in default and be subject to recovery proceedings with the legislative requirements and be allowed to proceed to the recovery stage of the computer process.

Reminder and Final Notices

The Council will make use of the three types of pre-summons action available to it.

(i) Statutory Reminder Notice for the first non-payment.

(ii) Statutory Reminder Notice for the second non-payment.

(iii) Final Notice should a third non-payment take place.

None of the above notices will be issued unless 14 days have elapsed since the instalment became due.

The timing and numbers of such computer runs to produce the said documents are to be determined by the Council.

Summonses

The Council will determine the annual Summons and Liability Order costs in consultation with the Magistrates Court.

The Council will not issue a Summons unless the appropriate Reminder/Final notice has been issued and not paid.

The Council will not withdraw a Summons in order to allow the statutory payment scheme to be recommenced, however a special arrangement may be entered into once a Liability Order has been granted but this will be subject to costs.

The Council will request the Clerk to the Justices to arrange a regular court date each month.

The Council will be permitted to restrict the number of summonses for each court session if the outcome would lead to excessive numbers that the staff/court would not be able to process.

Giro payments can take 7 days to reach an account so customers are advised not to use this method when paying time sensitive notices.

Liability Orders

The Council will ensure that two notices are sent to the debtor after the issue of a Liability Order, one being the notice of the granting of such an order and the other being a request for information.

The contents of such notices are determined by the regulations.

The debtor may be able to secure a payment arrangement upon the completion of the latter.

Payment Arrangements

Upon the completion of the Information Request the Council may enter into a payment arrangement with the debtor for not more than 6 months, unless exceptional circumstances are given i.e. change/loss of job or reduced income etc.

Notification of a payment arrangement will be issued in writing together with the consequences of not making payment, and any amendment to a payment arrangement will also be confirmed in writing

Should a dispute arise with regard a payment arrangement, the Council will only adhere to what has been confirmed in writing.

If no payment arrangement is reached one or more of the following will be tried.

Bailiff

The Council will instruct its Bailiff to collect on the appropriate Liability Orders only after the expiry of 14 days from the posting of such notices.

The Council will only use a Company whose Bailiff's are Certificated by the County Court and have a proven record of collection on this type of work. All work will be subject to an agreement between the Council and the Bailiff Company. The Bailiff Company must work to a Code of Practice of an appropriate governing body as well as that of the Local Authority.

Attachment of Earnings

The Council will issue such orders as and when necessary, and will not withdraw them unless payment in full has been received.

Deductions from Benefit

The Council will issue such orders as and when necessary.

Deductions of Members Allowances

The Council will issue such orders as and when necessary.

Committal Proceedings

Will be used, if in consultation with the Clerk to the Justices it is deemed appropriate.

Insolvency

The Council will consider commencing Insolvency Proceedings whenever the statutory minimum debt for starting such action is reached, and there is a likelihood that the debt and costs will be paid by the debtor or any subsequently appointed Receiver.

Charging Orders

In some circumstances the Council will seek to place a Charging Order on the property of defaulters, and if appropriate seek the sale of the property by an order of the Court.

Other avenues of collection

The Council will keep under review any other methods of collection which may come under discussion from Government.

Cancellation of proceedings/costs

A Summons/Liability Order/Costs will not be withdrawn unless any of the following has taken place.

A Benefit award is made that removes the debt.

An amendment is made to the account that removes the debt.

An error takes place in the billing process.

Cash mis-allocation

Instruction by a Manager

Exceptional circumstances, where a debtor's human rights and or a breach of natural justice will or has taken place.

A Liability Order will not be withdrawn from the Bailiff unless any of the above clauses have been met.

Absconders

The Council will attempt to trace all absconding debtors.

Write Off

Debt will only be considered for write if it falls within the categories set out in the Council's Financial Procedure Rules.

National Non-Domestic Rates

Statutory Instalments

The Council will advise all local taxpayers of their statutory right to pay by the number of instalments prescribed in the legislation whether it is the annual bill or a subsequent adjustment notice.

The Council will actively encourage payment by Direct Debit but will allow payment at its collection counters, by post, bank standing order, bank giro transfer, telephone banking and payment by Debit and Credit card. Other methods of payment will be investigated in line with changes in technology.

Non-Statutory Payment Arrangements

Weekly Payment
Weekly payment can be made so long as it is in advance i.e. by the first day of the month the due amount for that month has been paid, but only if there are no arrears on the account.

Payment by agreement
Any variation to the Statutory Instalment Scheme must be supported by good reason. These will be individually considered and a decision given in writing. The decision will be recorded on the computer database and the account amended accordingly.

Other Payments
All other payments which do not meet the Statutory Instalments or those set out above will be deemed as in default and be subject to recovery proceedings with the legislative requirements and be allowed to proceed to the recovery stage of the computer process.

Reminder and Final Notices

The Council will make use of the three types of pre-summons action available to it.

(i) Statutory Reminder Notice for the first non-payment.

(ii) Statutory Reminder Notice for the second non-payment.

(iii) Final Notice should a third non-payment take place.

None of the above notices will be issued unless 14 days have elapsed since the instalment became due.

The timing and numbers of such computer runs to produce the said documents are to be determined by the Council.

Summonses

The Council will determine the annual Summons and Liability Order costs in consultation with the Magistrates Court.

The Council will not issue a Summons unless the appropriate Reminder/Final notice has been issued and not paid.

The Council will not withdraw a Summons in order to allow the statutory payment scheme to be recommenced, however a special arrangement may be entered into once a summons has been issued but this will be subject to costs.

The Council will request the Clerk to the Justices to arrange a regular court date each month.

Giro payments can take 7 days to reach an account so customers are advised not to use this method when paying time sensitive notices.

Liability Orders

The Council will ensure that a notice is sent to the debtor after the issue of a Liability Order informing them of the granting of such an order.

The contents of the notice is determined by the regulations.

Payment Arrangements

After the issue of a summons the Council may enter into a payment arrangement with the debtor for not more than 6 months, unless exceptional circumstances are given.

Notification of a payment arrangement will be issued in writing together with the consequences of not making payment, and any amendment to a payment arrangement will also be confirmed in writing

Should a dispute arise with regard a payment arrangement, the Council will only adhere to what has been confirmed in writing.

If no payment arrangement is reached one or more of the following will be tried.

Bailiff

The Council will instruct its Bailiff to collect on the appropriate Liability Orders only after the expiry of 10 days from the posting of such notices, unless the Council feels that such a delay may result in collection of the debt not being achieved.

The Council will only use a Company whose Bailiff's are Certificated by the County Court and have a proven record of collection on this type of work. All work will be subject to an agreement between the Council and the Bailiff Company. The Bailiff Company must work to a Code of Practice of an appropriate governing body as well as that of the Local Authority.

Committal Proceedings

Will be used, if in consultation with the Clerk to the Justices it is deemed appropriate.

Insolvency

The Council will consider commencing Insolvency Proceedings whenever the statutory minimum debt for starting such action is reached, and there is a likelihood that the debt and costs will be paid by the debtor or any subsequently appointed Receiver.

Charging Orders

In some circumstances the Council will seek to place a Charging Order on the property of defaulters, and if appropriate seek the sale of the property by an order of the Court.

Other avenues of collection

The Council will keep under review any other methods of collection which may come under discussion from Government.

Cancellation of proceedings/costs

A Summons/Liability Order/Costs will not be withdrawn unless any of the following has taken place.

An amendment is made to the account that removes the debt.

An error takes place in the billing process.

Cash mis-allocation

Instruction by a Manager

Exceptional circumstances, where a debtor's human rights and or a breach of natural justice will or has taken place.

A Liability Order will not be withdrawn from the Bailiff unless any of the above clauses have been met.

Absconders

The Council will attempt to trace all absconding debtors.

Write Off

Debt will only be considered for write after under if it falls within the categories set out in the Council's Financial Procedure Rules.

Code of practice for bailiff acting for Tendring District Council

1. Each individual Bailiff who is employed must have had training and be familiar with regulations, case law, legal implication of distress and the Authority's Code of Practice. Also each individual Bailiff who is employed to act for this Authority should also be certificated by the County Court and ensure that any other staff recruited are fit and proper persons to act for the Bailiff Firm and this Authority. It is expected that the Bailiff Firm and or individual Bailiffs will be member of an appropriate professional body.

2. Bailiffs and employers, contractors and agents of the Bailiff Firm will act in a responsible and courteous manner, and will act in the interests of Tendring District Council at all times.

3. Communication with the authority must be regularly maintained thereby establishing a working practice of known and future developments.

4. The Bailiff Firm will maintain an acceptable standard of dress among all employees, contractors and agents, consistent with the provision of a professional service.

5. The Bailiff Firm will bring to the attention of the Recovery Manager or in his absence his deputy cases that are felt to be inappropriate for distraint action in accordance with the guidelines and will seek further instructions before proceeding.

6. The Bailiff and the Bailiff Firm will, on returning any un-executed Liability Orders, report the reason(s) why distraint has not taken place, together with any other additional information that is relevant.

7. At all times in the course of duties an individual Bailiff must bear the proper identification and letters of authorisation, which must include details of the Liability Order from this billing authority.

8. The Bailiff and the Bailiff Firm shall ensure that all information coming into their possession during the performance of the contract is treated strictly as being confidential and is not to be used for any purpose other than performance of the contract. All data will be handled in strict confidence in accordance with the Data Protection Act 1984.

9. The Bailiff Firm will answer all correspondence from debtors within 5 (five) working days of such being received.
10. The Bailiff Firm will account for monies and return all abortive/withdrawn Liability Order's instructions to the Local Authority on a weekly basis and in accordance with the contract.

11 .The Bailiff Firm must keep and properly maintain a separate client bank account and also a suspense account, which records all unidentified payments. The Bailiff Firm must allow reasonable access for the Local Authority's auditor to the records of these accounts.

12. The Bailiff Firm will make available to the Local Authority, on request, all correspondence relating to debtors and any supporting documents or working papers.

13. The Bailiff Firm must hold an agreed amount of professional indemnity insurance to cover the acts and omission of its employees, contractors and agents. The Bailiff Firm will satisfy the Local Authority that such insurance is up to date at all times.

14. Copies of the Code of Practice shall be freely available from the offices of both the Local Authority and the Bailiff Firm. The Local Authority shall also make copies available in each lending library under its control, and send a copy to each Citizen's Advice Bureau and local law centre in the area. A copy of the Code shall be given to each person who complains, or enquires how to complain, to the Bailiff, the Bailiff Firm or the Local Authority.

15. Visit to effect the execution of the liability order.

15.1 On a first visit it shall be made known to the person or persons concerned the amount of costs which have been incurred. This information will be shown on documentation left or given to the responsible person or persons.
It shall further show that additional costs will become necessary if a second visit is made.
Normally, on the first visit distraint shall not be attempted, only a walking possession shall be made on the debtor's known property. But should circumstances imply that distraint should take place immediately the authorisation must be obtained from the Recovery Manager or in his absence his deputy.
Any removal of goods must be authorised by the Recovery Manager or in his absence his deputy.

15.2 No second visit will be attempted which will incur additional costs unless a period of 5 (five) days have elapsed since the first visit was made, unless the Bailiff has good reason to believe and can show good cause to the Local Authority that the chances of collection will be severely hampered if the period of 5 days is adhered to.

16. Any further Liability Order issued whilst collection is made on an outstanding previous Liability Order will be the subject of a separate letter. The debtor must be informed which of these orders is being executed at all times.

17. The Bailiff must make every reasonable effort to contact the debtor personally.

18. At every attempt to contact the debtor a notice must be left in an envelope to state the reason for the visit being made.

19. Visits should be attempted at a different time from previous unsuccessful visits, unless agreed with the debtor.

20. The Bailiff must never disclose to any other person in the course of his enquiries the reason why he wishes to contact the defendant, other than parents, spouse or adult offspring if these are identified as such, or being a business, a responsible person.

21. Negotiations will be allowed where appropriate for instalments to be made in order to achieve full payment plus the costs incurred, but should not allow these to extend beyond six months from the day of receipt of the Liability Order by the Bailiff, unless the Bailiff is of the opinion that it is the only way collection will be achieved.

22. Distraint. All distraint is subject to Code item 24.

22.1 A "Walking Possession" agreement should only be made with the debtor in attendance and the debtor is made aware of the legalities of "Walking Possession".

22.2 Where the bailiff effects a distraint of goods, a notice of distress and any other documents prescribed by law should be left with the debtor.

22.3 The Bailiff will distrain on sufficient goods to cover part or whole of the Authority's debt, the costs of removal and the auctioneer's commission. Excessive distress must always be avoided.

22.4 Before levying distress the Bailiff shall ensure that the goods upon which the distraint is to be made actually belong to the debtor and do not belong to any other person unless jointly owned by the debtor and another person.

23. Distress will not be levied without further consultation with either the Bailiff's Manager or the Recovery Manager or in his absence his deputy of this billing authority where the following conditions are ascertained:

23.1 The debtor is a severely disabled person (either mentally or physically).

23.2 The debtor is incapacitated due to illness or old age.

23.3 A recent bereavement of a close member of the family (i.e. wife, husband, mother, father, brother or sister).

23.4 Advanced pregnancy of debtor or debtor's spouse.

23.5 There is a long-term sickness or serious illness.

23.6 The debtor does not understand English.

23.7 Where the debtor is ascertained as being in receipt of Income Support for an extended period of time.

24. The following items are not to be removed where distraint is to occur:

24.1 Cooking appliances where this would leave the individual with no means of preparing a hot meal.

24.2 Heating appliances where this would leave premises with inadequate heating, particularly where the household includes young children or someone is elderly or sick.

24.3 Any items appertaining to the children of a household.

25. Only reputable auctioneers are to be used to sell the goods distrained by the Bailiff.

26. All monies, including part payments, must be paid promptly and in accordance with the contract.

27. Only reasonable removal costs are to be charged to the debtor, which could be justified in a court of law if so challenged.

28. Where the Bailiff can no longer enforce the Liability Order because he cannot locate the debtor, the Liability Order must be returned at the first instance with all the relevant information.

29. Where the Bailiff can no longer enforce the Liability Order because of insufficient good's upon which to distrain, or payment is not forthcoming, the Liability Order must be returned duly endorsed "Nulla Bona". In addition, clearly giving information of dates when recovery action occurred thereby endorsing the statement of "Nulla Bona".

30. All individual Bailiffs must comply always with all known legislation.

31. Tendring District Council reserves the right to make amendments to this Code of Practice upon consultation with the Bailiff Contractor.

Notes
A. The use of words indicating the male gender should be read to include also the female gender.