05
The Committee received and considered the report from the Revenues and Benefits Service Manager which provided an overview of the Council’s Council Tax recovery and enforcement processes and practices.
Councillor Capewell asked a question in regard to the use of Voicescape for pre-recovery notice prompts, it was noted that this had improved collection ratios. The voice messages are also backed up with text messages. These messages give an early prompt or nudge to the council taxpayer to make a payment or contact the GYBC to discuss the arrears before the issue of a formal notice. The Text Message Service also gives those people in arrears options and links to pay online or use the GYBC automated phone line. If they wish to, they can also contact GYBC to discuss their arrears. The messages are designed using behavioural science to maximise the engagement from the customer, either in terms of payment or speaking to the GYBC about the arrears, this has seen a reduction in statutory notices being sent. It was also noted the system will be expanded shortly to include email as well as text messages.
A further point was raised by Councillor Capewell on debt collection and it was noted that if the debtor is employed, up to two Attachment of Earnings can be placed on your account at the same time and deductions are made separately for each attachment. Once an attachment of earnings has been set up, it will not be cancelled until payment is received in full. The Attachment of Earnings Order is a legal document, and the employer has a legal obligation to make deductions from their employee’s earnings and submit the amounts deducted to the GYBC.
In response to a question raised by Councillor Newcombe, it was noted that interest cannot be charged on the arrear’s debt; and the sooner the Council engaged with the debtors, the easier it is to address the situation.
Councillor Wainwright commented that GYBC goes beyond what is required or expected when compared to other councils in helping to address debt in such a proactive fashion.
Following a comment made by Councillor Murray Smith, the Committee noted that if a debtor took the opportunity to use bankruptcy where if the debt exceeded £5000, the Council would consider taking bankruptcy action against that debtor.
In these circumstances, the Council will serve a statutory demand upon the debtor, and if full payment is not received, the Council can then petition for bankruptcy. However, in most cases, the court will expect the Council to have exhausted all other methods of recovery, including the use of enforcement agents in deciding if bankruptcy is an appropriate course of action.
Therefore, the Council must weigh up the costs of taking such action, together with legal advice on how likely the Council will be in recovering the debt. The Council will also have to consider the impact on the debtor and what action they have taken to improve their financial situation. Bankruptcy is very often the last resort where the debtor is willingly refusing to pay their council tax and all other recovery actions have been exhausted, any fees incurred in taking bankruptcy action will be paid by the debtor.
Councillor Murray-Smith referred to page 18 of the agenda report and reported that he disliked the term "customer" being used in the report and that the persons concerned should, in his view, be referred to as ratepayers or taxpayers.
Councillor Newcombe reported that in her former employment the term "customer" was always used in cases of debt collection and that this term was the norm to use in these circumstances.
The Chair, on behalf of the Committee, placed on record his thanks to Stuart Brabben and the Revenues and Benefits Team.
RESOLVED:-
That the Committee noted the contents of the Council Tax Recovery Process and the comments made in regard to the contents of the report.