In a new report, the Credit Services Association (CSA), the UK trade body for the debt collection and debt purchase sector, has called on the Government to improve its debt collection methods for collecting debts to help service users more effectively and boost collections revenues.
The report praises the accomplishments of the Government Debt Management Function and the Treasury’s cross-government ‘Fairness Group’ but highlights the need for continued progress and a focus on local government.
Report author and CSA Head of Policy, Daniel Spenceley, said “Public sector collection practices have made progress in recent years, but they continue to be outshone by the private sector. When it comes to debt collection, the general public should be able to expect similar treatment and similar support, regardless of who they owe money to. At present, that is not the case, especially when it comes to vulnerability support and forbearance for those in most need.”
“We recognise the challenges that face government, both central and local, when there are gaps in their funding, and the pressure that this can place them under. But the standards seen in private sector collections demonstrate that better practices and healthy recovery rates can go hand-in-hand.”
Debt Collection Methods improvement
The CSA report identifies several opportunities for improvement, including expanding the scope of the Government Debt Management Function’s Fairness Charter, which sets high-level standards for central government departments recovering debt, to include local government. The CSA also notes that government communication strategies, such as referencing potential imprisonment or demanding a full year’s council tax bill, may be hampering their own ability to generate meaningful engagement with the public.
Spenceley concluded “The tone and content of collections communication is often critical to positive engagement with the individual, and local councils may be shooting themselves in the foot by starting their conversations in a needlessly adversarial manner. We have long advocated for a compassionate and constructive approach to early arrears communications and believe this would go some way to improved engagement with councils and government departments.”
