Council turns to Debt Collection Agencies for help

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council turns to debt collection agencies

A Freedom of Information request has revealed £1.997 million of Maldon district council-related debt was sent to external debt collection agencies in the 2023/24 financial year.

These debts include failures to pay Council Tax, Business Rates, parking fines and housing arrears.

This is the highest amount of debt sent in the last three years, with debt sent totalling £1.39 million in 2022/23 and £1.93 million in 2021/22.

The information detailing the total amount of recovered debt, as well as the total debt owed to the council, has not currently been made available.

It is important to note that external debt collection agencies are only used as a last resort by the council, once all other options to obtain payment have been exhausted.

A spokesperson for Maldon District Council said, “The Council adopts a rigorous approach to collecting all outstanding debts, recognising that unpaid debts impact upon the income and resources we have available to deliver our services to our residents.

“In 2023/24 we collected £53.7M Council Tax, which is more than 98% of what was due to be paid, and over £14M Business rates, which was more than 99% of what was payable.

“For those that try to evade payment, we use the range of measures that the law allows us to use, such as direct deductions from a person’s salary.

“Customers who are experiencing difficulty in making payments are encouraged to contact us as soon as possible so we can discuss an appropriate plan for repayment of the debt.”

The Freedom of Information Request, made by Helen Hoddinott on February 7, 2024, also requested information on the number of complaints the council has received about the conduct of external bailiffs and debt collectors.

Maldon District Council reported only one complaint in the database since 2021.

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