Consultation over Fair Debt Policy

1. Introduction

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Our draft Fair Debt Policy sets out the approach to the billing, collection and recovery of all monies due to Lewes District Council and Eastbourne Borough Council.

The policy identifies where the responsibility for the collection of different debts lies and sets out the principles and standards we will adhere to in relation to contact, recovery and enforcement process, repayments and welfare benefit and money and debt advice.

The policy sets out the framework for a consistent and sensitive approach to collecting debt whilst ensuring that each Council continues to maximise income collection and arrears recovery performance.

Money due to the Council can be a mixture of statutory and non-statutory charges. The methods of billing and recovery for statutory charges are prescribed by the relevant legislation.

 

Policy Objectives

The Councils have a duty to ensure we collect income and recovers debt efficiently and effectively to ensure it fulfils its financial responsibilities to its residents and businesses and maximises its capacity to provide its services.

As a billing authority the Councils are also required to collect Council Tax and Business Rates on behalf of other organisations including East Sussex County Council, Sussex Police and Crime Commissioner, East Sussex Fire and Rescue and Town and Parish Councils within the District of Lewes. Central Government also retain a proportion of Business Rates income.

In collecting income and recovering debt we are committed to adhering to best practice. Best practice includes the recognition that some customers may be temporarily or permanently vulnerable and need protection and support.  

Where possible, we will act to prevent debt arising or escalating by offering payment options and signposting customers with debt issues to debt advice agencies.

Scope of the Policy
 The policy covers the following debts owed to the Council:

  • Council Tax
  • Rents
  • Housing Benefit Overpayments
  • Non-Domestic Rates (Business Rates)
  • Sundry Debts

Factors common to all debt types          
Every demand for payment will be correctly addressed to the person,   business or other legal entity liable for payment.                              

The Council will encourage the most cost-effective payment methods with the emphasis being on electronic means where possible.                      

Where the potential for a statutory relief, discount or exemption may apply in relation to the debt, efforts will be made to make the debtor aware of this and they will be encouraged to apply for them.