Debt Recovery effort sees £437,000 written off by Council

debt collection agencies could have save small businesses

Renfrewshire Council is preparing to write off more than £400,000 of irrecoverable debt following extensive debt recovery action.

Elected members will meet tomorrow to consider the move, which would mean a number of companies, either dissolved or liquidated, would not be expected to make further payments on specific bills.

A total of £437,532 is due to be considered by the finance, resources and customer services policy board.

Financial regulations require a report on the write-off of sums of more than £10,000 to be submitted to the board for consideration.

A document called ‘Business Services Accounts for Write-Off’ states that the local authority has already pursued the debts in question and adds that it is now “considered prudent” to write off the outstanding balance.

“The debt recovery process involves extensive effort by the council and its debt recovery agents to locate the debtor and recover the debt,” the report states.

“During this process, a stage can be reached when it is recognised that the recovery of the sums is no longer viable and it is prudent to write-off the recovery of the outstanding liability.

“The council has already pursued each of the debts summarised…through its follow-up cycle and it is considered prudent to write-off the outstanding balance.

“The approval for the write-off will enable the council to prudently reflect within the financial accounts an accurate representation of the collectable debt.

“The council continues to monitor the accounts and, where the circumstances of the debtor alter, will instigate further recovery action as appropriate.

“The level of write-off will be contained within the council’s bad debt provision.”

The debts which the council could write off are made up of around £17,000 from sundry debtors and almost £420,000 relating to non-domestic rates.


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