A North London government authority has agreed to pilot a new debt collection project with London debt collection agency Agilisys Revenue Collection.
Enfield Council has instructed the firm to target their historical council tax debt ledger, previously deemed ‘non-collectable’ by Debt Enforcement firms.
Enfield already collects 98% of its council tax and is amongst the top 10 councils in the UK for tax collection.
The council has advised that it will be on a strictly ‘no win – no fee’ arrangement and will not cost the borough’s tax payers any money.
Agilisys will be simply paid a proportion of what they recover. They will undertake all of the recovery work but the council has the control to stop recovery actions if necessary, giving them greater control.
The councils cabinet member for finance Andrew Stafford said “We are facing a difficult time financially and it is important we leave no stone unturned in chasing the debts owed.
“We are are always striving to recoup every penny owed to us, so we can maintain and protect the services our residents rely on”
Debt Collection Industry experts predict that it will not be a profitable exercise for the Debt Collection Agency, highlighting the problems other DCA’s have had across the UK with similar past projects.
However, according to their website, Agilisys claim can boost council’s funds by 2 to 4 million pounds a year, a claim that will come as a surprise to many, given the current tough economic plight of many low income families in the UK and the rise in Debt Management firms over the years.