Councils could scrap the use of debt collectors and bailiffs in South Ribble and Chorley to be more caring towards residents
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Both authorities are to debate whether to bring in a Fair Collection Charter aimed at adopting a more ethical approach to debt.
The charter will be put to South Ribble members at a meeting of the full council tomorrow night.
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Hide AdMembers will be told that failure to introduce a more sympathetic policy "would mean failing to provide support to financially vulnerable residents and local businesses in financial difficulties."
And a report to the council says that the Citizens Advice Bureau "has welcomed the changes as being much, much better for people in poverty."
The report goes on: "Debt can be a determinant of wider issues and adoption of these measures will help to ensure a joined-up approach to managing residents and local businesses experiencing issues.
"Where residents have no means to pay there is no benefit in pursuing enforcement action, incurring additional costs and increasing their vulnerability impacting upon mental health, well-being and self-confidence."
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Hide AdThe move comes at a time where local authorities are already feeling the pinch. But South Ribble says a more considerate approach to rent and tax collection is still needed.
The report says: "The council has a duty to collect what it is owed in order to fund vital local services.
"The council also recognises that some residents and local businesses find themselves in financial hardship and we will do all we can to work with them and support them in making payment.
"The current debt management policies have been in place since 2015 at Chorley and 2018 at South Ribble. Both councils have more recently adopted some measures and forged partnerships with other organisations in line with best practice recovery.
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Hide Ad"There is currently a move towards more ethical debt recovery and an increased emphasis on fairness in government debt management."
South Ribble says the new charter is aimed at "fulfilling the council's responsibilities and to support residents and local businesses."
It includes measures that residents and local businesses can take to help the council to help them.
The authority says it will also make "a clear public commitment to make every effort possible to reduce the use of bailiffs over time" - something Chorley Council has already done.
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Hide AdThe report goes on: "The fair collection policy focusses on a more proactive approach than the previous debt management policies, providing help to residents and local businesses in managing their finances.
"It also emphasises actively reducing outstanding debt by encouraging residents and local businesses to apply for all available help such as discounts and exemptions, discretionary housing payments and council tax support.
"It is difficult to predict the impact on the councils’ collection rates as there are a number of other factors at play not least the Covid pandemic.
"The impact of the adoption of the charter will be reviewed in 18 months time."