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GRAVESHAM BOROUGH COUNCIL

Corporate Fair Debt Policy

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CORPORATE FAIR DEBT POLICY

Introduction The purpose of the Corporate Fair Debt Policy is to establish guidelines for the recovery of all debts outstanding to the Authority, also to specify the manner in which these debts are to be collected. The Policy will use all available options to collect from those who seek to avoid paying their debts; equally, it will show that those who communicate they are experiencing genuine difficulties will be assisted in any way possible. Gravesham Borough Council recognises that it is essential to make early contact with debtors, also that the consolidated departmental debt will provide a co-ordinated approach. The fair debt policy approach should ensure that each debtor is treated fairly and as an individual with compassion in cases where genuine financial difficulty is experienced.

Principles of Recovery Action Written demands are produced and dispatched in accordance with

legal requirements and comply with the published timetable.

Every effort is made to maximise benefit entitlement

There are clear written guidelines (roles and responsibilities) for all staff involved in recovery action. Also concise information for debtors and advice agencies

Advice and information are available for debtors at every stage of the recovery process

Procedures must: Be effective, ensuring that where people have the means, they fulfil

their obligations by paying their debts

Acknowledge the debtors’ obligations to their department(s),including recognising the department’s priorities and how it will impact on the customer if it is not paid.

Attempt to sort out debt problems as early as possible

Effectively distinguish between the debtors who cannot pay and those who will not pay

Allow for full appraisal of a debtors circumstances – providing sensible repayment arrangements



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Achieve a fair balance between the claims of Gravesham Borough Council’s competing creditors

Provide money advice referral (Citizens Advice Bureau and the National Debt Line) where a need is identified

Detail Collect current year plus an amount from any outstanding arrears – to

ensure debts do not continue to increase

Any un-collectable debts to be written off in accordance with the financial regulations

The debtor should be able to make consolidated payments which the Corporate Debt Team will allocate appropriately to clear their liability on multiple debts

Processes and controls must ensure that debt data is up to date, accurate and complete

The system must be continually monitored by the relevant department so action occurs – e.g. on default

Designated officers must be empowered to make corporate decisions

Case conferences should be held in the more complex cases.

Revised Debt Recovery and Write-off Policies The council recovers the following key sources of income:

1. Sundry Debts

2. Council Tax

3. National Non-Domestic Rates (or “Business Rates”)

4. Housing Benefit Overpayments

5. Parking Penalty Charge Notices (PCN)

6. Housing Rents

Each of the above has their own section within the Corporate Fair Debt Policy.

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Table of Contents 1 Sundry Debts ..................................................................................................... 2

1.1 Council Policy ................................................................................................ 2 1.2 Policies Specific to Sundry Debtors ............................................................... 2 1.3 Cancellation of sundry debt invoice ............................................................... 4 1.4 Write Offs....................................................................................................... 5

2 Council Tax ....................................................................................................... 6 2.1 Council Policy ................................................................................................ 6 2.2 Policies Specific to Council Tax ..................................................................... 6 2.3 Enforcement Agent/External Agency Recovery ............................................. 8 2.4 Committals ..................................................................................................... 9 2.5 Write Offs..................................................................................................... 10

3 Non Domestic Rates ........................................................................................ 11 3.1 Policies Specific to Non domestic Rates ...................................................... 11 3.2 Enforcement Agent/External Agency Recovery ........................................... 12 3.3 Write Offs..................................................................................................... 13

4 Overpaid Housing (and Council Tax) Benefit ................................................... 14 4.1 Council Policy .............................................................................................. 14 4.2 Policies Specific to overpaid housing and council tax benefit ....................... 14 4.3 Write Off ...................................................................................................... 19

5 Parking Enforcement ....................................................................................... 20 5.1 Council Policy .............................................................................................. 20 5.2 Policies specific to Parking Enforcement ..................................................... 20 5.3 Write off ....................................................................................................... 21

6 Housing Rents ................................................................................................. 22 6.1 Council Policy .............................................................................................. 22 6.2 Policies specific to Housing Rents ............................................................... 22 6.3 Recovery of Former Tenant Accounts .......................................................... 25 6.4 Write Off ...................................................................................................... 27

Referral of Department Debts to the Corporate Debt Section .................................. 28 Summary ................................................................................................................. 30 Appendix 1.Vulnerable Persons Policy .................................................................... 31 Appendix 2.Putting the Customer First: Corporate Customer Service Charter ......... 35 Appendix 3.Write Off Policy ..................................................................................... 42



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1 Sundry Debts

1.1 Council Policy

1.1.1 The Service Manager - Finance on behalf of the council has a duty to recover all outstanding amounts.

1.1.2 It is essential to maintain council services offered by recovering any costs for those services provided. It is imperative that invoices are paid to ensure the continuance of services.

1.1.3 At all times the council's Customer Care – Putting the Customer First: Corporate Customer Service Charter (Appendix 2) and Vulnerable Persons Policy (Appendix 1) strategies must be operated within the Sundry Debtors collection environment.

1.2 Policies Specific to Sundry Debtors

1.2.1 Sundry debtor invoices are raised by individual departments and the Income Section. A full individual’s name or company name and address, including postcode is required. Invoices should be charged to the correct cost centre and VAT code. A detailed description should be illustrated together with an appropriate due date and for the correct charge. Agreements, evidence or any legislation applicable must be retained by the originating department for future recovery action and to provide an audit trail to evidence that the debt raised is valid.

1.2.2 The responsibility for the billing, collection and recovery of sundry debtor demands is held by the Assistant Director, Finance. Where appropriate, the Assistant Director, Finance may agree that staff within other Services may become involved in the process.

1.2.3 Sundry Debtors can be cancelled at any recovery stage providing the proper procedures are followed.

1.2.4 Service providers must endeavour to obtain payment in advance or at the time of service delivery wherever permissible. Sundry debt accounts should only be raised where payment in advance for a service is inappropriate.

1.2.5 Except in the case of a demand payable by instalments, or as otherwise contractually agreed, the settlement terms for all demands will be immediate. Where a debtor has contacted the authority to make a special arrangement to pay every attempt will be made to clear outstanding arrears by the end of the financial year 31 March.

1.2.6 At all times the council will act promptly, consistently and legally in cases where payment is overdue.



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1.2.7 Invoices will be issued promptly with sufficient information to explain the charge.

1.2.8 In the event of non payment a reminder will be issued after 14 days from the due date of the invoice.

1.2.9 If payment is not made within a further 14 day period, a second reminder will be issued.

1.2.10 Failure to pay following a second reminder will result in the debt moving to the welfare stage on the debtors system. A decision will then be made to refer the matter to a collection agency, currently Stanford and Green or progress the debt to the next recovery stage ‘letter before action’ (LBA).

1.2.11 All debt at LBA stage will be reviewed by a member of the Income Recovery Team, who will decide on the progression of the debt based on debt type, previous recovery history and available, legally appropriate recovery methods.

1.2.12 If the debt is deemed as non–recoverable, the Income Manager will employ the write off procedure (see Appendix 3).

1.2.13 If the debt has been deemed to be recoverable, the Income Team will review the debt and the next steps to be taken in the light of the council’s Vulnerable Person’s policy. This may include the use of the Experian and Locta Systems in order to carry out financial/ historical searches and the Insolvency Services website to check that the current address held is correct and that the debtor is not bankrupt. Search requests made through Locta are sanctioned by the Systems Administrator. The use of Experian for searches is monitored by the Fraud Manager in liaison with the Income Manger. A land registry search to verify property ownership will be carried out at this stage.

1.2.14 If the debt has been deemed to be recoverable and the methods in 1.2.13 have been exhausted, the Income Manager will decide to issue a notice of intent to summons. Where legally permissible, the provision of future services to the debtor may be suspended until outstanding debts are settled after discussion with the appropriate service manager.

1.2.15 If a notice of intent to summons has been issued, and if after the specified time payment has not been made, a County Court Summons will be issued. This will result in a County Court Judgment (CCJ) being lodged. This may affect a credit rating and make any type of future credit agreement difficult. It should be noted that once Judgment has been granted, court costs and interest will be added to the debt.

1.2.16 Once Judgment has been obtained, the council will then enforce the Judgment, which can include an attachment of earnings order or Enforcement Agent action to seize goods to the value of the debt.



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1.2.17 Under a judgement order a charging order may be obtained on the debtor’s property, which will remain in place until the property is sold, although this can be enforced sooner by proceeding with an order for sale.

1.2.18 Insolvency proceedings may also be instigated for debts above £750 as stated by the Official Receiver’s Office, which results in bankruptcy

1.2.19 Remedies as stated in paragraph 1.2.17 and 1.2.18 are particularly effective for corporate debt due to the consolidation of debts owed across the authority by an individual

1.2.20 The costs of enforcement action/ litigation to recover sundry debtor invoices will be charged against the budget of the service raising the invoice. Any costs recovered from the debtor will be credited against these sums.

1.2.21 To prevent any of the recovery action shown above, it is important that contact is made between the council and the debtor to seek reasons for non payment. If necessary, instalment agreements can be arranged dependant on individual circumstances.

1.2.22 Ownership of all sundry debts rests with the originating units. It their responsibility to:

issue an instruction to cancel an invoice, using a Sundry Debtor Cancellation Form;

correspond with or discuss with the debtor issues relating to the validity of the debt; and

determine what, if any, services should be provided to debtors who are in arrears.

The Income Section will provide reports to the originating units on a regular basis as to the value of their outstanding accounts.

1.2.23 The Income Section within the Finance Department will supply each Service Manager with a monthly report showing the status of debts raised by that service department. They will also contact the service department:

before taking court action against the debtor;

requesting that the debt be written off.

1.2.24 It is the responsibility of the service department to determine how to supply services to a debtor who is already in arrears. However, prior to a council service being withdrawn completely from a debtor, the service department must identify if the service can be legally stopped and then contact the supplier to explain the action to be taken and the reasons behind it.

1.3 Cancellation of sundry debt invoice



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1.3.1 Only staff working in the Income Section of the Finance Department will have access to cancel sundry debt invoices raised on the debtors system.

1.3.2 If service managers wish to cancel a sundry debtor invoice then they must complete the Sundry Debtors Cancellation Form, which must be signed by an authorised officer. It should then be sent to the Income Section.

1.3.3 For an officer to be authorised to sign the cancellation form, they must have approval from their Service Manager or a Director. This is recorded on the Sundry Debtors Authorised Signatories sheet, which will be held in the Income Section. It will be the responsibility of the Income Manager to distribute this form to be updated at least annually.

1.3.4 A sundry debtor invoice can be cancelled at any recovery stage, including court action. However, thorough checks on correctness as stated in (1.2.1) must be established by a member of the Income Recovery Team prior to the issue of a claim through the Court due to court costs.

1.3.5 At all times the council's Customer Care Policy- Taking Pride in Gravesham (see Appendix 2) and Vulnerable Persons Policy (see Appendix 1). Strategies must be operated within the Sundry Debtors collection environment.

1.4 Write Offs

1.4.1 The Income Section will provide the following details to the Assistant Director, Finance to enable them to decide on whether or not to write off a debt:

Debtor reference

Total sum

Reason for debt

Action taken to date to recover the debt

Reason for the write off

1.4.2 Sundry Debt which is identified for write off will be actioned in accordance with Gravesham Borough Council’s Corporate Write off Policy (See Appendix 3).



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2 Council Tax

2.1 Council Policy

2.1.1 In accordance with the provisions of the Local Government Finance Act 1992 Gravesham Borough Council is responsible for levying and collecting all Council Tax that is payable on all occupied and unoccupied domestic properties, which are not exempt and situated in the borough of Gravesham.

2.1.2 In order to ensure arrears are kept to a minimum and the Council Tax is kept as low as possible for everyone, it is essential that Gravesham Borough Council operate an effective and efficient approach to the collection of Council Tax monies using the methods determined by legislation and regulation.

2.1.3 The Service Manager Revenues and Benefits on behalf of the council has a duty to recover all outstanding amounts of Council Tax and at all times staff within the Revenues Department will operate according to the councils strategy ‘ An Excellent Council’.

2.2 Policies Specific to Council Tax

2.2.1 The responsibility for the billing, collection and recovery of Council Tax is held with the Service Manager Revenues and Benefits.

2.2.2 It is important that anyone who does not pay their Council Tax by the due date is pursued for payment quickly.

2.2.3 The collection and enforcement of Council Tax is governed by the regulations “Council Tax (Administration and Enforcement) Regulations 1992.

2.2.4 When a payment is missed an Instalment Reminder letter will be sent 14 days after the instalment becomes due. If the account is brought up to date and then a second instalment is missed, a second reminder letter is sent. If the second instalment is brought up to date and then a third instalment is missed, a Final Notice is sent requesting the full outstanding balance for the year. A summons will be sent following a reminder or a second reminder or a final notice if the account is not brought up to date.

2.2.5 Information regarding the availability of discounts, exemptions and council tax reduction along with a copy of the council’s Customer Charter must be made available on the Council’s website.



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2.2.6 If a resident contacts the authority and agrees special arrangements to pay the agreement will be in accordance with the councils written guidelines and criteria for the making of special arrangements.

2.2.7 Where taxpayers have contacted the authority to make a special arrangement to pay every attempt will be made to clear outstanding arrears by the end of the financial year 31 March.

2.2.8 Explanatory notes will be issued with the summons notice explaining the implication of Council Tax Enforcement.

2.2.9 If the resident contacts the council and agrees an arrangement to pay following a summons the residents employer details will be captured and retained.

2.2.10 Should the case reach court the council will make an application for a Liability Order at the hearing.

2.2.11 Staff attending court will assist defaulters who may choose to attend court for the Liability Order hearing and ensure they have a written breakdown of summons and liability order costs available. They will also ensure they are equipped with a supply of CTRS (council tax reduction scheme)/Single Person Discount forms etc. In order to provide assistance to complete forms and assess potential entitlement to CTRS/ Housing benefit, it would be necessary to attend the Benefit Section at the Gravesham Borough Council offices.

2.2.12 A Council Tax Notice of Liability Order and information request with details of the possibility of Enforcement Agent action will be issued to the taxpayer from the Enforcement Agent Company within 3 working days of the court hearing.

2.2.13 If the information request is not returned the case will be passed to Enforcement Agents for recovery action. Fourteen days’ notice must be given prior to carrying out this action.

2.2.14 Should the debt fail to be recovered through the use of the Enforcement Agents, appropriate action to prosecute for potential committal will proceed.

2.2.15 Where employer details are supplied an attachment to earnings will be made to recover the outstanding debt.

2.2.16 An employer is bound by law to action a local authority request to apply an attachment to earnings in respect of a liability order granted under relevant Council Tax legislation. An employer who fails to set up such an attachment will first be reminded but ultimate failure to carry out this action will result in prosecution.

2.2.17 Where information about relevant benefits is provided an attachment to benefit will be arranged to recover the outstanding debt.



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2.2.18 Should the authority be unsuccessful in arranging attachment to earnings or benefits, where appropriate Charging Orders will be applied for and/or if appropriate the authority will Petition for Bankruptcy and in appropriate cases apply for an order for sale of the property.

2.3 Enforcement Agent/External Agency Recovery

2.3.1 Before the council instructs the Enforcement Agents the resident will be sent a final warning letter informing the resident that the council is about to instruct a Enforcement Agent to recover council tax monies that are due and inform them of the costs involved.

2.3.2 When the services of Enforcement Agents/External Agency Recovery have been determined a contract will exist along with formal written procedures specifying the standard of service to be provided and will cover the following matters:-

The initial Enforcement Agent visit will be expected to be within 10 working days of receipt of the case.

Where no contact has been made within office hours then at least one visit will take place outside normal working hours before the case is returned for committal.

There will be specific procedures for the removal of goods.

Cases will only be returned by Enforcement Agents after at least three unsuccessful visits have been made.

There will be agreed provision for the security of money collected in the form of bond or client account.

A joint signatory account will be set up for external Enforcement Agents to pay in all collections requiring an authorised signatory for the withdrawal of the Enforcement Agents portion of fees.

The authority will request copies of external Enforcement Agent’s annual accounts, insurance certificates and monthly bank statements of client accounts and these will be retained by the council.

The authority should be able to access the external Enforcement Agents system via a link in order to make enquires.



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2.3.3 Where an arrangement does not exist between the authority and Enforcement Agents, the Enforcement Agent will not retain the case for longer than a maximum of 90 days.

2.3.4 It will be arranged for money collected by the Enforcement Agents to be paid to the authority on a weekly basis.

2.4 Committals

2.4.1 When the Authority has tried all other options it will only list unpaid Council Tax cases for committal which exceed the minimum value which is considered by the authority as uneconomical to pursue.

2.4.2 The council will send pre-committal warning letters (pending warrant letter) prior to commencement of proceedings allowing the taxpayer the opportunity to make payment by other methods.

2.4.3 If after 14 days no contact or payment is made the Council completes Committal Approval Documents, which must be approved by Senior Management.

2.4.4 If approved, the Council will apply to the Magistrates Court for a Bail Warrant instructing the tax payer to attend Court at times and dates as specified by the Court.

2.4.5 Once granted by the Court, the Bail Warrant is passed directly to the Enforcement Agent for execution.

2.4.6 The authority shall charge costs up to the statutory maximum at the time of issuing a Committal Warrant to cover admin costs.

2.4.7 Evidence/cases will be presented in court in line with the council’s policy. The Magistrates will conduct a Means Enquiry to assess if the tax payer is guilty of wilful refusal or culpable neglect they can commit to prison for a maximum of 90 days per liability order or suspend with a payment order/ remit all or part of the total debt.

2.4.8 Should the tax payer not attend the Court hearing a Warrant without Bail will be applied for, together with appropriate costs. This involves arresting the tax payer and bringing them to Court immediately.

2.4.9 If a Court Order Payment Plan is not adhered to a Section 18 Notice will be issued requiring the tax payer to attend Court. This notice must be either hand delivered to the tax payer (requiring a witness statement of service) or sent by recorded delivery

2.4.10 Once a suspended committal sentence has been imposed and the payment plan has been defaulted on a committal warrant can be applied even in the tax payer’s absence. Any such application requires approval from a Senior Manager.



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2.5 Write Offs

2.5.1 Council Tax debt which is identified for write off will be actioned in accordance with Gravesham Borough Councils Corporate Write Off Policy (Appendix 3).



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3 Non Domestic Rates 3.1 Council Policy

3.1.1 Schedule 7 (part 1) Local Government Finance Act 1988 provides that the multiplier is set by the Secretary of State. The Valuation Office (an agency of HM Revenue & Customs) provides the rateable value of all non-domestic hereditaments. Gravesham Borough Council is responsible for levying and collection of Non Domestic Rates payable on all occupied and unoccupied hereditaments, which are not exempt and situated in the borough of Gravesham.

3.1.2 In order to ensure arrears are kept to a minimum, it is essential that Gravesham Borough Council operate an effective and efficient approach to the collection of Business Rates monies using the methods determined by legislation and regulation

3.1.3 The Service Manager Revenues and Benefits on behalf of the council has a duty to recover all outstanding amounts of Non Domestic Rates and at all times staff within the Revenues Department will operate according to the councils strategy ‘ An Excellent Council’.

3.2 Policies Specific to Non domestic Rates

3.2.1 The responsibility for the billing, collection and recovery of Non Domestic Rates is held with the Service Manager Revenues and Benefits.

3.2.2 It is important that anyone who does not pay their Non Domestic Rates by the due date is pursued for payment quickly.

3.2.3 When a payment is missed a Further Notice will be sent 14 days after the instalment becomes due. If the account is brought up to date and then a second instalment is missed, a Reminder Notice is sent requesting the full outstanding balance for the year. A summons will be issued (in line with available court dates) following a Further Notice or Reminder Notice if the account is not brought up to date.

3.2.4 If the rate payer fails to make payment following a Further Notice the rate payer will lose the right to pay by instalments and the full sum, payable for the year, will become immediately due.

3.2.5 The Council is obliged to provide statutory explanation notes, which also inform of any rate relief; these are available on the Council’s website (the website page is shown on the back of the rates bill).

3.2.6 If a ratepayer contacts the authority and agrees special arrangements to pay, the agreement will be in accordance with the councils written guidelines and criteria for the making of special arrangements.



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3.2.7 Explanatory notes will be issued with the summons notice explaining the implication of Non Domestic Rate Enforcement.

3.2.8 Should the case reach court the council will make an application for a Liability Order at the hearing.

3.2.9 Staff attending court will assist defaulters who may choose to attend court for the Liability Order hearing and ensure they have a written breakdown of summons and liability order costs available.

3.2.10 If no arrangement is made to clear the Liability Order debt, the case will be passed to Enforcement Agents for recovery action.

3.2.11 Should the debt fail to be recovered by Enforcement Agents appropriate action to prosecute will be taken, where appropriate Charging Orders will be applied for with the ratepayer’s consent or petition for bankruptcy/liquidation sought.

3.3 Enforcement Agent/External Agency Recovery

3.3.1 When the services of Enforcement Agents/External Agency Recovery have been determined a contract will exist along with formal written procedures specifying the standard of service to be provided and will cover the following matters:-

The initial Enforcement Agent visit will be expected to be within 10 working days of receipt of the case.

Where no contact has been made within office hours then at least one visit will take place outside normal working hours before the case is returned for committal.

There will be specific procedures for the removal of goods.

Cases will only be returned by Enforcement Agents after at least three unsuccessful visits have been made.

There will be agreed provision for the security of money collected in the form of bond or client account.

A joint signatory account will be set up for external Enforcement Agents to pay in all collections requiring an authorised signatory for the withdrawal of the Enforcement Agents’ portion of fees.

The authority will request copies of external Enforcement Agent’s annual accounts, insurance certificates and monthly bank statements of client accounts and these will be retained by the council.

The authority should be able to access the external Enforcement Agents system via a link in order to make enquires.



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3.3.2 Where an arrangement does not exist between the authority and Enforcement Agents, the Enforcement Agent will not retain the case for longer than a maximum of 90 days.

3.3.3 It will be arranged for money collected by the Enforcement Agents to be paid to the authority on a weekly basis.

3.4 Committals

3.4.1 The committal process for NNDR is the same practise as for council tax and is covered in the Section 2.4 of the Corporate Fair Debt Policy, albeit the tax payer as referred to will be replaced with the rate payer.

3.4.2 The committal option can only be considered if the NNDR liability is in a sole trader name and not in a company name.

3.5 Write Offs

3.5.1 Rate payer’s debt which is identified for write off will be actioned in accordance with Gravesham Borough Councils Corporate Write off Policy



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4 Overpaid Housing Benefit

4.1 Council Policy

4.1.1 The majority of Housing Overpayments are recoverable. A recoverable Housing Benefit overpayment must always be recovered from the claimant and/or person to whom it was paid. Some debts are irrecoverable, for example, those caused by Official Error where the claimant could not reasonably have known that they had been overpaid or where they had not contributed to the error.

4.1.2 Officers assessing claims will decide if the overpayment is recoverable at the time of processing the overpayment. Any overpayment considered irrecoverable will be referred to a Senior Officer for a final decision. The Overpayments Officer will monitor the level of recoverable overpayments that the Council decides not to recover by using reports via the Council’s computer system (currently Northgate).

4.1.3 It is at the discretion of the Council whether to recover an overpayment. Where known, the personal circumstances of the claimant should be taken into account when deciding whether to recover the overpaid amount.

4.2 Policies specific to overpaid housing benefit Whom to recover from

4.2.1 Any recoverable overpayment will be recovered from the claimant or the person to whom payment was made (this could be a landlord or the claimant’s appointee). When deciding who should repay the debt all factors must be taken into account such as the likelihood of the person receiving the payments knowing they were being overpaid. Where payments are made to a landlord, we will make a judgement based on evidence available on whom to recover from.

4.2.2 Where the overpayment has been made due to misrepresentation or failure to disclose a relevant fact by the customer, someone acting on their behalf, their landlord or an agent, then recovery will be sought from the person to whom the payment was made.

4.2.3 The recovery of fraud overpayments are prioritised by interviewing claimants immediately after they have been issued with a Formal Caution or Administration Penalty and make arrangements with them to clear the debt.



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Recovery Methods

4.2.4 Councils can recover overpayments by any lawful means. One or more of the following methods of recovery will be adopted dependant upon the individual circumstances of each case. The amounts specified in each case are in relation to the 2014/15 financial year.

Recovery of Rent Rebate/Rent Allowance from Future Benefit

Action Timescale Follow Up

Notification Within two working days

Customer requests to renegotiate recovery rates

10 working days

Letter to customer confirming new recovery rate within two working days

Recovery of Rent Rebate/Rent Allowance by Sundry Debtors

Action Timescale Follow up

Invoice sent Within 2 days Due date deferred by one calendar month

1st Reminder

On due date Failure to pay invoice within 14 days will result in a final reminder being issued

Final Reminder

14 days after 1st reminder

Failure to pay invoice within seven days

Chase up telephone call

Weekly report run to identify outstanding invoices

Failure to respond to call will result in either a pre debt collection letter or Letter before Action being issued depending on amount of debt

Pre Debt collection letter

Failure to respond to letter within 14 days

Refer to debt collection agency

Debt collection agency

Failure to respond to agency

Returned to GBC to start Court action

Letter before action

Failure to respond to letter before action within 14 days

Refer for court proceedings within 14 days

Court Proceedings

Failure to respond to all of above



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Recovery from ongoing benefit - Rent Allowance or Rent rebate

4.2.5 Where a claimant continues to receive Housing Benefit we will make deductions from ongoing payments of Housing Benefit having regard to their financial circumstances. Where appropriate we will recover debts at the weekly amounts recommended by the DWP.

4.2.6 For the financial year 2014/15, the rates are as laid out below.

Standard Recovery Fraud Recovery

£10.95 per week £18.25 per week

4.2.7 As well as the above-mentioned rates of recovery, we will also increase deductions, where appropriate, by half (50%) of any of:-

the earnings disregard, if applicable

regular charitable income or voluntary payments, if applicable

War Disablement or War Widows Pension, if applicable

4.2.8 In all above-mentioned cases, the recovery amounts are subject to an overall maximum deduction, which does not reduce the benefit payable to less than £0.50 pence.

Arrangements

4.2.9 A Guide to Housing Benefit Overpayments is issued with every Overpayment Letter and invoice providing information to claimants about overpayments and appeal rights. There is also advice to contact Housing Benefits if an arrangement to pay in instalments is required. The Overpayment Officer will keep a central list of all arrangements to pay.

By deduction from certain DWP benefits

4.2.10 We may ask the DWP Debt Management Office, to recover an HB/CTB overpayment by deduction from certain DWP benefits, as prescribed by Regulation. These are as follows: -

Attendance Allowance

Bereavement Benefit

Carer’s Allowance

Disability Living Allowance

Employment Support Allowance

Incapacity Benefit

Income Support



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Industrial Death Benefit

Industrial Injuries Disablement Benefit

Jobseeker’s Allowance

Maternity Allowance

State Pension credit

State Retirement Pension

Severe Disablement Allowance

War Pension

War Disablement Pension

Widowed Mother’s Allowance

Widow’s Benefit

Widow(er)s Pension

4.2.11 Where necessary entitlement to benefits will be identified through the Customer Information System (CIS) connected to the Department for Works and Pensions Database.

Recovery from benefit payments made by another authority

4.2.12 Where possible we will recover overpayments from Benefit payments being made by other Local Authorities.

Debt Collection / County Court Action Where standard recovery action has failed to recover the debt it will either be passed to a Debt Collection Agency or recovered in the County Court by the Council’s Court Officer County Court action

4.2.13 Where standard recovery action has failed to recover the debt, it will be recovered in the County Court by the Council’s Court Officer.

Tracing Debtors

4.2.14 All available resources will be used to trace debtors including data matching options, Experian searches, LoCTA searches and utilisation of the DWP Customer Information System. External Tracing Agents will also be deployed when all other avenues have been explored and it is cost effective to do so.

The effectiveness of the above recovery methods will be reviewed annually by the Assistant Revenues & Benefits Manager and the Overpayments Officer.



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Recovery from a Blameless Tenants Housing Benefit

If a debt is recoverable from the Landlord/Agent and they still receive Housing Benefit payments for other tenants we may deduct the debt from future payments due to them. The effectiveness of the above recovery methods will be reviewed annually by the Assistant Revenues & Benefits Manager and the Overpayments Officer.

Direct Earnings Attachment (DEA)

From 8 April 2013 the Social Security Act 1992 was amended allowing Local Authorities to recover overpayments by attachment to earnings without the need to obtain a Court authority. Where the debtor has not made an arrangement to repay the overpayment and it is found that they are working for an employer, the Local Authority will issue a DEA order to the employer instructing repayment at the appropriate rate as per the net earnings.

Payment Methods

4.2.15 The following payments methods will be accepted: -

Cash

Cheque

Credit/ Debit Card

Recovery from ongoing Housing or Council Tax Benefit

Recovery through the Council Tax Bill (Council Tax Benefit Only)

Recovery from other Welfare Benefits



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4.3 Corporate Debt/Write Off

4.3.1 Where all recovery action has been attempted and the overpayment is still outstanding the debt will be passed to the Corporate Debt Section. The Corporate Debt Section will endeavour to recover the overpayment with any other outstanding debts.

4.3.2 Write Off action will be taken in accordance with the principles set out in the Council’s Corporate Write off Policy and the principles laid out in the Financial Rules. Debts will be recommended for write off by the Overpayments Officer or an authorised officer within the Local Authority’s Debt Recovery Section. The Housing Benefit Overpayment Officer will retain details of all outstanding overpayments where Benefit is no longer in payment, in the event of future Benefit being awarded, enabling recovery in the future.



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5 Parking Enforcement

5.1 Council Policy

5.1.1 To ensure compliance with the restrictions within the council car parks and the County highways the council is authorised to issue Penalty Charge Notices to vehicles parked in contravention of the restrictions as stated in the Traffic Management Act 2004.

5.1.2 At all times the council’s customer care, taking pride in Gravesham and the vulnerable person’s strategies must be operated within.

5.2 Policies specific to Parking Enforcement

5.2.1 Penalty Charge Notices (PCNS) will be issued to contravening vehicles whenever an enforcement officer deems it necessary.

5.2.2 The recovery of the fines is the responsibility of the office team and for reasons of segregation of duties and safety, the enforcement officers are not allowed to take payment for the PCNS they issue.

5.2.3 Except where a separate instalment arrangement has been agreed by the parking office, all payments will be in accordance with the Traffic Management Act 2004.

5.2.4 Within the authority the council has the discretion to cancel a Notice for various reasons and therefore not proceed with the fine. The powers of discretion in these cases can only be exercised by a Senior Parking Manager.

5.2.5 At all times the council will act legally and promptly in all cases where payment is overdue.

5.2.6 Before a notice is passed to a Enforcement Agent for collection all statutory methods of enforcement must have been taken. Notice to owner, Charge certificate, and statutory declaration.

5.2.7 Where every effort has been made to recover up to the statutory declaration stage the Debt Officer, in conjunction with the Parking Manager can consider cases to be put forward for a warrant of execution.

5.2.8 Once the Court are happy that all the statutory steps have been taken and the warrant has been granted to the council further recovery action can be considered.



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5.2.9 Through out the life of the PCN the debt officer should make every attempt to recovery the amount due at every stage in the proceedings. This can be done by using external collection agents, telephone contact, interim letters, Experian and other search engines.

5.2.10 Should the officer not be able to collect the amount due then the warrant can be passed to one of the council’s Enforcement Agents for collection.

5.2.11 Where instalment arrangements are sought by the driver a thorough investigation into their ability to pay must be carried out and initially the amount should not be paid over a period longer than 3 months.

5.2.12 Where the debt officer feels, due to the amount or circumstances, the balance should be paid over a longer period then a case conference should be held with the line manager to decide a way forward.

5.3 Write off

5.3.1 If the Debt Officer, Enforcement Agents and tracing agency have not been able to recovery the money the debt officer must consider the case to be listed as unable to recover and put onto a write off list to be considered and signed by the Assistant Director, Transformation and Finance. As well as the name, address and amount the list should also show the types of recovery action that have been taken. Write off action will be carried out in accordance with the Corporate Write off policy.

5.3.2 To ensure segregation of duties the officer compiling the write off report cannot remove the records from the system and once the cases have been removed from the system the write off sheet must be passed to the service manager for checking.



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6 Housing Rents

6.1 Council Policy

6.1.1 The aim of the department is to maximise income collection and minimise arrears owed by current and former tenants. We ensure that tenants have the information and support they need to maximise their income and prevent or minimise debt.

6.1.2 Tenants are informed of their payment responsibilities before they commence their tenancy, when they sign-up and at their welfare visit which takes place six weeks after the sign up dates/commencement of tenancy.

6.1.3 The Housing department aims to make paying rent easy. We offer a range of payment methods, which are widely publicised.

6.1.4 Full advice is given to tenants on their rent obligations and entitlement to Housing Benefit at the time of sign up

6.1.5 Tenants are informed of the full rent due and details of any service charges due and details of what the services covered by the charge are. Tenants are advised in writing of any changes to the rent due at the earliest possible time and are provided with a quarterly statement.

6.2 Policies specific to Housing Rents

6.2.1 At sign-up / commencement of tenancy new tenants are advised of their responsibilities regarding the tenancy placing great emphasis on the requirement to pay their rent promptly

6.2.2 New tenants are to be visited within eight weeks of moving in. This visit provides the tenant the opportunity to resolve any problems relating to Housing Benefit and to highlight the fact that the Council will act if payments are missed.

6.2.3 Basic debt counselling advice is available to tenants experiencing difficulties with rent payments. Debt Advice leaflet “Making ends meet- a self help guide to dealing with debt” are given to tenants at the sign up stage.

6.2.4 A debt counselling service has been set up between Gravesham Borough Council and the CAB for our residents to access if they require assistance. Tenants can be referred to the CAB by rent arrears officers or they can approach CAB directly themselves

6.2.5 Housing Benefit advice is given to tenants at the sign up by housing staff. If they need additional support or advice, they are advised to contact the Housing Benefit section.



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6.2.6 Council Housing Rents and Housing Benefit staff will undertake joint visits to vulnerable clients who have difficulty in paying their rent. Please refer to the Corporate Policy “Vulnerable Persons’ Policy. Tenants will be provided with information about the arrears recovery process, including contact names and numbers should they become unable to pay the rent due or keep to an agreement to clear arrears.

6.2.7 Peak periods of non-payment have been identified, i.e. Christmas period and such times have been targeted with publicity campaigns about the consequence of non-payment.

6.2.8 Arrangements must be put in place to oversee and action arrears when a Team member/staff post is vacant, annual leave or absent through sickness.

6.2.9 Our objective is to achieve upper quartile performance in the level of rent collection and rent arrears by ensuring the following: -

a corporate approach to the recovery of debt

taking account of social inclusion

providing a debt counselling service

adopting examples of Good Practice and ensuring an approach of Continuous Improvement.

staff are fully trained, supported and developed.

customer focus in the delivery of the service.

close liaison with the Housing Benefit department and ensure that Housing Benefit overpayments are treated separately to rent arrears.

6.2.10 The Housing Operations Manager is responsible for the collection of rent income and recovery of rent arrears. It is important that anyone who does not pay their rent by the due date is pursued for payment quickly.

6.2.11 At the first missed fortnightly payment an immediate letter is sent to the tenant. Alternatively, if there are concerns about the account, a letter should be sent to the tenant.

6.2.12 If there is no response by the next payment date a second letter (RA2) is sent out and the situation monitored.

6.2.13 If there is no response to RA2 letter a home visit must be arranged by the Rent Officer. If on arrival for this appointment the Rent Officer finds the tenant is not in, a business card should be left asking the tenant to contact the office

Service of Notice of Seeking Possession



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6.2.14 A Notice of Seeking Possession is the first step in taking legal action against the tenant. The purpose of this action is to recover possession of the Council’s premises from the tenant and may result in the tenant’s eviction from their home. Service of the Notice (NOSP) is governed by Law and must be carried out correctly for successful legal action to follow.

6.2.15 As a general rule, the arrears should not be permitted to get any higher than the equivalent of six weeks rent before a NOSP is served. However, the Rent Officer has the discretion to serve a NOSP earlier than this or to delay it providing an explanation for the action is recorded. The Notice should be served, together with a covering letter.

6.2.16 A NOSP service is still appropriate if the tenant is in receipt of Housing Benefit whereby Benefit payment does not cover the full rent and the remainder has not been paid by `the tenant.

6.2.17 NOSP is valid for 28 days from date of issue. If a tenant pays off the debt or makes arrangement to clear the arrears within this period no further recovery action.

6.2.18 Whereby the tenant is unable to clear the debt and unable to make arrangements to pay off the debt gradually, after the 28 days period the case will be entered into Court.

6.2.19 The Rent Arrears Officer will only refer a case to Court under the following circumstances:-

Tenant has been interviewed and completed an Income and expenditure form.

An arrears report was completed.

A referral has been made to the Citizen Advice Bureau

The Housing Benefit position and Direct Payments from the Benefit service has been established.

The NOSP is still valid.

Court Hearing

6.2.20 The Rent Arrears Officer attends and presents the cases to the Court and will ask the Court Judge for one of the following orders;

A - Money judgement for the sum outstanding

B - Possession order-(suspended or outright)

C - Case adjourned

D - Case dismissed



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6.2.21 Regarding the A & B above, if the tenant defaults on repayments or the court order, the Rent Arrears Officer will apply to the Court for an eviction order to repossess the property.

Officers are advised to seek eviction as a last resort.

Pre-Eviction Action

6.2.22 Prior to seeking an eviction, the Rent Arrears Officer should inform the Housing Needs Team and Social Services if the household includes:

Young children up to 16 years old

Elderly people

Any one with disabilities

Any one classified as vulnerable or at risk.

6.2.23 The eviction should be cancelled if the tenant clears the debt in full before the Enforcement Agent enforces the warrant for eviction.

6.2.24 Where the tenant makes a large payment and offers to pay off the balance in instalments, the tenant should be advised to apply to the Court for a stay hearing.

6.2.25 Tenants have the right to apply to the Court for the eviction warrant to be suspended before the eviction date. Based on evidence presented to the Court by both parties, the Judge may dismiss the appeal or suspend the eviction on terms of payment of the rent plus arrears.

6.3 Recovery of Former Tenant Accounts

6.3.1 Should a tenant leave a property without settling the rent account, the arrears accrued are known as former tenant arrears and an account is created, known as a former tenant account (FTA), to manage and recover monies owed to the Council. The Allocations and Homelessness Sections of the Housing Department will check FTA records to ensure that clients requesting social housing with previous arrears arrange to repay any debt owed.

6.3.2 A computerised list of FTAs should be scrutinised monthly by the Housing Income Manager to establish the following:

Current contact details (address and telephone number)

Case allocated to one of three specific Housing Income Officers (based on geographical areas)

6.3.3 Each case must be investigated to establish viability of recovery and the type of FTA as follows:



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Former tenants with a County Court Judgement (CCJ) and a money judgment for the arrears

Former tenants who have absconded leaving no forwarding address and of whom a CCJ and money order has not been applied for.

6.3.4 A decision should be made on the most effective and appropriate method of recovery. This is based on the client information available. An initial telephone call is made, or a letter sent detailing the status of the account, including periods of tenancy, address and value of arrears. A request for payment in full is made at this time.

6.3.5 Should a debtor advise that payment in full is not affordable, a brief financial assessment must be carried out by the Officer and a potential payment plan is offered to repay the total debt by instalments. Letters of confirmation are sent to confirm all agreements to pay (either in full or by instalments).

6.3.6 Each case should be delegated to the Housing Income Assistant, designated to deal with FTAs. Accounts are monitored for payment according to instructions decided in paragraph 6.3.3.

6.3.7 Should a debtor default on payment, a telephone call should be made, a letter sent or a personal visit made, advising of the default and the requirement to satisfy the agreement. This recovery method must be repeated monthly for up to a period of three months advising that failure to respond may result in further recovery action.

6.3.8 Cases, in which payment is not received according to an agreement as decided in paragraph 6.4.3, will be referred back to the Housing Income Manager. Address searches will be investigated through the Experian Search engine and cases for which a current address can be ascertained will be referred to the Debt Collection Agency.

6.3.9 In line with procedures, unsuccessful cases will be returned to the Council from the Debt Collection Agency within three months. The Housing Manager will decide whether a case returned will be referred to the Corporate Debt Section for further recovery or to put the debt forward for write off in line with the Corporate Write Off Policy.

6.3.10 Debts referred to the Corporate Debt Section in which a CCJ and a money order have been attained will follow the progression rules for sundry debts in this position (see section 1.2 of the policy). The Corporate Debt Section will progress the execution of the judgement.



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6.3.11 Debts referred to the Corporate Debt Section, in which there is no CCJ will follow the progression rules for sundry debts in this position (see section 1.2 of the policy).

6.4 Write Off

6.4.1 A report is compiled by the Senior Accounts Officer each month of Housing rent debts assessed as potential write-offs. The criteria for consideration for write off are as follows:

Debt is uneconomic to pursue

Financial hardship

Residence in a care home

Debtor sentenced to prison for a long time

Debt Statute barred

Tenant is deceased –No money in the estate

No forwarding address obtained after twelve months

6.4.2 The Assistant Director of Housing has the authority to write off debts up to the value of £1000.00.

6.4.3 Housing Rents debts valued over £1000 but up to £5000 should be submitted for write-off to Director of Transformation and Finance.

6.4.4 Housing Rents Debts valued over £5000 but up to £15000 should be approved for write off by the Director of Transformation and Finance in consultation with the relevant Cabinet Portfolio holder.



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Referral of Department Debts to the Corporate Debt Section

Department responsibility It is the individual Departmental responsibility to collect monies owed to the Council by ensuring initial recovery methods are carried out within its own powers in accordance with legislation. Preliminary checks should be carried out by the Department prior to referral to the Corporate Debt Section including land searches, credit checks and tracing. It is also the individual Departmental responsibility to offer initial welfare advice and record an assessment of an individual Debtor’s circumstances. Referral of Department debt to the Corporate Debt Section On initial referral of a debt to the Corporate Debt Section, an investigation is carried out by the team to ascertain whether the debtor has any other outstanding debts in respect of council services or functions. Multiple debts will then be consolidated and progressed through the most effective recovery method; ensuring the welfare of the debtor is considered. In certain cases a debt may be referred from a Department at an early stage of recovery (prior to Court) if it is considered to be in the best interest of the Council and the debtor to do so i.e. a welfare case or as identified under the Council’s Vulnerable Persons Policy (Appendix 1). It may be considered that a debt be referred to the Corporate Debt Section at an earlier stage if consolidation of all Council owed debt is necessary i.e. Bankruptcy. Due to the variation in legislation and Court procedures and protocol, recovery of debts owed to the Council will be referred to the Corporate Debt Section at varying stages of recovery. A summary is itemised below: - Sundry Debt – with the exception of commercial rent invoices, most sundry debt invoices will be referred to the Corporate Debt Section upon return from the external Collection Agency; this being at least four months following the due date of the invoice. Unpaid commercial rent invoices will be referred to the Corporate Debt Section at least two days after the due date if the lessee has vacated the Unit or if the Enforcement Agent has failed to recover monies under the Distress for Rent Act. Council Tax – unpaid council tax liabilities will usually be referred to the Corporate Debt Section at least three months after a default on an instalment; a liability order will firstly be obtained through the Magistrates Court and when all other recovery action within the Revenues jurisdiction under council tax legislation has been exhausted.



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Non Domestic Rates – unpaid non domestic rate liabilities, as with council tax will usually be referred to the Corporate Debt Section at least two months after a default on an instalment; a liability order will firstly be obtained through the Magistrates Court and when all other recovery action within the Revenues Department jurisdiction under non domestic rate legislation has been exhausted. Overpaid Housing Benefit – unpaid housing benefit will be referred to the Corporate Debt Section at least two months after the due date of the overpayment invoice. This will follow demands and all recovery action within the Benefits jurisdiction under Housing Benefit legislation. Parking – unpaid parking fines will be referred to the Corporate Debt Section at least three months after the date of the initial demand for payment. Referrals will be made following registration at the County Court and return from the Enforcement Agent after failure to execute the warrant. Housing Rents – with the exception of former tenant accounts it must be stressed that the most effective method of recovering unpaid current housing rent is through the Council’s application for a Possession Order through the County Court. This action is undertaken within the Housing Department by a team of specialised Officers trained to carry out this task. In exceptional circumstances it may be agreed by the Housing and Income Team to refer a current Housing Rent debt to the Corporate Debt Team for recovery; probably due to welfare issues or consolidation of total debts owed to the Council. In the case of unpaid former tenant accounts, as with sundry debt invoices, referral to the Corporate Debt Team is usually made within four months of the initial demand for payment. Recovery Action to be taken by the Corporate Debt Team The type of recovery methods used by the Corporate Debt Team to recover monies owed to the Council are itemised below. Comprehensive notes are available within the Corporate Debt procedure notes retained within the Financial Department Income Section. 1. Order to Obtain Information from Debtor 2. County Court Enforcement Agent 3. Bankruptcy 4. Attachment of Earnings Order 5. Charging Order on Property 6. Third party order/ garnishee 7. High Court Enforcement Agent (Sheriff)



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Summary Through the Corporate Fair Debt Policy, the above enforcement remedies will be used as required. Such action may not always be necessary and therefore each case has to be considered on its own merit by the Corporate Debt Team in line with the Council’s Vulnerable Persons Policy. The Corporate Debt Team will provide a one-stop contact point for the Debtor, the Council Departments and outside agencies involved in debt and welfare advice.



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Appendix 1. Vulnerable Persons Policy

1 Background The Transformation and Finance department recognises instances where the circumstances of a debtor make it inappropriate to apply the normal enforcement remedies, for example Enforcement Agent action or committal proceedings. This document provides guidance for staff and our collection agents on how to deal with Vulnerable Persons who owe a debt to the council. It seeks to assist officers and agents to promptly identify such cases in order that they may be handled sensitively and responsibly.

2 Definition Vulnerability may result from:

Age or Infirmity

Physical or mental health

Social & financial circumstances

Learning or language difficulties

A combination of any of the above

The list is not exhaustive Examples of debtors who may be Potentially Vulnerable are people who are

Recently bereaved

On a drug or alcohol rehabilitation programme

Terminally ill or with a long term illness

Have learning or language difficulties

Recovering from a serious accident or illness

Suffering from a nervous breakdown or with a predisposition to the condition

Recently released from prison

Recovering from a recently failed business

Asylum Seekers/Refugees

Deaf or blind (i.e. people with a profound sensory disability)

3 Identification Based on the above descriptions, the member of staff or agent can make a judgement on whether a debtor may be considered vulnerable. The initial request to treat a person as vulnerable may come from a third party e.g. the CAB. There are no blanket definitions; each case has to be considered on its merits.



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Any debtor who is considered potentially vulnerable must be flagged up immediately to the designated senior officer. The account should be marked with the appropriate code on the respective computer systems. All recovery proceedings must be suspended forthwith for an initial period of 28 days. The basis of the decision should be summarised and the information passed to the designated senior officer for further investigation. The senior officer will undertake a detailed review within 28 days of each referral. The debtor may be visited at home, interviewed by telephone, or if so disposed, invited to attend a face to face discussion in the office. With the debtor’s consent, further information and/or opinion may be sought from medical practitioners, the Social Services and relevant professional bodies. It is imperative that this stage is completed expeditiously so as to limit any uncertainty or anxiety on the part of the affected person.

4 Evaluation Having weighed carefully all the evidence, the senior officer will conclude whether the debtor would be adversely affected if recovery proceedings were to continue. If so, the case will be identified as a Vulnerable Person’s account and appropriate notification issued. All future enforcement notices and actions will be reviewed. The designated senior officer will ensure that all Vulnerable Persons are accorded the personal and sensitive attention required, within the provisions of the law. Any person adjudged not to be a Vulnerable Person may appeal to the Revenues Manager/ Accounting Manager whose decision will be final. In undertaking the investigation, the designated senior officer would seek to ensure that

The liability is correctly calculated and all reductions have been applied (e.g. statutory discounts, Council Tax Reduction)

A comprehensive statement of means is completed where legally appropriate for the debt. Where applicable, a clearly affordable repayment plan is agreed, together with a suitable payment method. Care must be exercised to avoid the accumulation of arrears which would have to be repaid at a later date

The debtor has a named contact and direct line for any future enquiry

Any authorisation for a third party to act on behalf of the Vulnerable Person is obtained and properly recorded.

Where appropriate, a recommendation may be made for the debt to be written off in part or whole. Any request should be supported with as much information as possible of the debtor’s circumstances – both personal and financial

5 Periodic Reviews The accounts of all Vulnerable Persons will be reviewed at least once annually. Affected persons would be duly notified of any changes.



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Appendix 2. Putting the Customer First: Corporate Customer Service Charter

Gravesham Borough Council is committed to delivering excellent customer service to both internal and external customers and has developed a corporate customer service charter which underlines the standards to be met and delivered by all officers, for all services. This Charter is called “Putting the Customer First”. The Corporate Charter ensures set standards throughout the council, promotes joined-up working and unifies its approach to customers, their needs and the authority’s responsibility in delivering services. To reinforce the Customer Service Charter, corporate training in these standards and customer service is available to all officers. The Charter will be reviewed annually to address any amendments or additions required. Anita Tysoe Service Manager, Customer & Theatre Services Reviewed October 2011 Our key standards:

Answer the telephone within five rings

Answer letters and emails within five working days

Acknowledge complaints within five working days and answer them within a further ten working days

Our values:

Excellence in all that we do. We will work to achieve:

Excellent customer care

Excellent services

Excellent value of money

Putting the Customer First: Gravesham – Connecting with the Community In October 1993, Putting People First was developed. It set out a series of corporate standards for how we should deal with both our internal and external customers. Putting People First was a success and saw a great improvement throughout the authority. However, time passes and new people join, so the publication was re-issued in 2003 with annual updates and re-titled ‘Putting the Customer First’. Our customers, our duty, our responsibility People are our customers. We carry out our tasks for them and with them.



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By using the guidelines in this publication, we can ensure that our overall standard of customer care is maintained at the highest level and that we consistently provide this high level of service, regardless of which department we work for or where we are based. Good or bad customer service? Good customer service is…

providing an excellent service from the first point of contact, through to satisfactory conclusion;

dealing with customer requests efficiently and effectively;

providing a consistent level of service;

… so that no matter who contacts us, how they contact us, or why they contact us, they all receive the same level of excellent service. Remember that customers form their impressions based on their first contact. So, how we welcome them, how we make them feel and how we help them will result in either a good or bad impression of the council.. Equality Equality is about being fair to everyone. As employees of Gravesham Borough Council, we must all conduct ourselves in a manner that reflects the Council’s Equal Opportunities policy. Dealings with customers and colleagues must be conducted with regard to their needs. Our policy sets out that we will; “…treat all people with dignity and respect …eliminating all forms of discrimination in service delivery …”. The policy also highlights that some people suffer discrimination through unemployment, ill health, social exclusion, other socio-economic factors and less obvious reasons. A copy of our Equal Opportunities Policy is included in the Staff Portfolio, but if you would like further information or are interested in our training course, please speak to Personnel Services. Taking things seriously It is very important that we recognise each customer has their own priorities and something that may seem quite small to you, could be causing them undue stress. We must therefore always take things seriously. See it from the customer’s point of view, listen to what they have to say understand their position.



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Identifying ourselves From time to time we will all need to identify ourselves. For consistency, officers should provide their first name and title as a minimum. Directors, Service Managers and Senior Officers should give their full names. Keeping others informed Keeping your colleagues informed has a big impact on customer service. Telling others where you are will enable someone else to give your customer a clear timescale of when they can expect to hear from you. Detailed file notes will also allow a colleague to have some input in your absence and this can be particularly helpful when dealing with difficult cases. There is nothing more annoying than contacting an organisation and finding there is only one person who knows about your case - and they are on holiday! A simple way of improving customer service, without a great deal of effort, is to keep your colleagues, the reception and switchboard aware of your availability; including sickness, meetings, holidays etc. Having an agreement with your colleague to cover you in times of absence and utilising the ‘out of office’ e-mail tool will also improve customer service – not only for the public, but also for your fellow colleagues. Dealing with customers over the telephone For the majority of our customers, the first contact is by telephone. It may also be the only direct contact a member of public has with us. Customers will invariably need a quick response to their enquiry and how we deal with their call will leave a lasting impression. It is important that we respond to customer needs promptly, sensitively and courteously. Answering the telephone Customers expect a prompt answer to their call, so our target is to answer the telephone within five rings. Customers also expect a personal answer – ask a colleague to cover in your absence, or divert your calls to another extension. We should all answer calls in the same way, using the relevant greeting, followed by our Department or Section. For example: -

“Good morning, Customer Services”

Ask the caller how you can help and deal with the issue(s) raised.

Give the caller your name and contact details so they can speak to you again if required.

Thank the caller for contacting the council.



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Conducting a telephone conversation We must all be aware and considerate of others engaged in telephone conversations. The person at the other end of the telephone will be able to hear all background noise, including general conversations, laughter and raised voices. Not only can this sound unprofessional, but it can be extremely annoying for the customer – particularly if they are calling us about a difficult issue. It will seem that we don’t care or take things seriously. Interruptions Never interrupt a colleague whilst they are on the telephone. This will distract them from concentrating on the issue in hand. Wait for them to conclude their call before speaking to them. Putting calls on hold Always utilise the hold facility, whether you are speaking to a colleague or going to gather information whilst the caller waits on the line. Either way, without using the hold facility the customer will not only hear what you are saying but everything else that is being said in the office! Taking responsibility for your calls If you are unable to help the caller, explain why and what action you are going to take – either transferring them to someone who can, or taking a message. Remember that this now becomes an inconvenience for the customer, so keep them informed of what you are doing. If you put a call on hold, don’t leave them there - go back and let the customer know what is happening. Nothing upsets people more than not knowing; thinking they’ve been forgotten or even cut off. If you take a message for someone else, make sure they get it and ask the officer an assurance that it will be dealt with. Similarly, if someone takes a message for you, respond to it quickly. Dealing with customers face-to-face In the same way as answering the telephone, personal visitors form their impression on how we deal with them at the first point of contact. It is therefore very important that we are always welcoming, courteous, professional and helpful. Always wear your name badge if you are coming in contact with the public. Always address customers formally, either Sir, Madam or by their surname, unless you are invited to do otherwise. Listen carefully to what the customer is saying and try to establish the exact nature of their enquiry. Take details of their name, address and telephone number and make a note of the key points. Repeat them to show you have understood, but do not interrupt.



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Angry Customers If you deal with an angry customer, always remember that their anger is usually caused for one of two reasons: - they have not been dealt with in the correct way or they have not got the result they expected. It is not often that people try the ‘angry approach’ to get something they are not entitled to. It is usually because we haven’t dealt with them correctly. Their anger could be due to frustration (e.g. being passed from department to department), due to past problems or the expectation that we will not do anything. Dealing with angry customers People tend to mirror each other, so even if someone is agitated over their dealings with us or they have experienced poor service, by maintaining a calm and courteous approach you could naturally calm the customer down. Do not respond aggressively. Show the customer that you understand their frustration and will do your utmost to resolve their query. Keep them informed and explain the situation clearly. Whatever the result of the enquiry, focus on the positive i.e. what we can do now to resolve the situation. Getting the right information It is important not to make a situation worse by giving the wrong information. Speak to the officer who can deal with the issue and ensure you get the right information, or arrange for that officer to speak to the customer straight away. If you need immediate assistance, or the issue is clearly serious and you cannot contact the officer concerned, go to their Line Manager. Do not be afraid to involve others – resolving the situation in hand is your priority. If you really cannot resolve the issue on the spot and need to refer the matter to another officer, advise the customer who you will be speaking with and when they can expect a call. Assure the customer that you will pass all the details on and ask the officer to keep you informed for your own information. Remember if the situation is not resolved, the customer may ask for you when they come back! If you require training in handling difficult situations, please speak to your Line Manager. Course details are available from Personnel on extension 7374. Personal Visitors At Gravesham Borough Council we have a large number of personal visitors at our offices on a daily basis. Each and every visitor should be welcomed and treated respectfully, regardless of who they are or why they are visiting us.



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Meeting visitors Visitors must be met by the relevant officer and their enquiries dealt with at the main reception. If attending a meeting in another part of the building, they should be met and accompanied to the meeting place. There are interview rooms within the reception area to enable enquiries to take place in privacy. These can be booked through the Gateway Manager. Signing in and out Any visitors going behind security doors should sign in and wear an identification badge. This also applies to contractors. On leaving the premises, the visitor should return their badge to the reception point, when they will be signed out. For security purposes, it is important that everyone outside the main reception area is identifiable. Notification of Visitors It is not often that we receive unexpected visitors and letting reception staff know in advance about the visitors you are expecting enables them to be prepared. You can e-mail or telephone reception with the date, time and names of your expected visitors, along with the extension number you want them to call when they arrive. Written correspondence We must take all correspondence seriously, whatever the form. It takes time and effort to write to the Council and, for some, it may have been a very difficult task. Our response must be prompt, courteous and to the point, without using jargon. Although a telephone call or personal visit may be the best way of dealing with some written enquiries, often it is more appropriate to respond in writing. All correspondence should be replied to within five workings days. Corporate Style Guide All written communication must be prepared in line with our corporate style guide, paying attention to the use of plain English, the layout, font and grammar. For further information refer the style guide on the intranet. Letters, e-mails and faxes Gravesham Borough Council has various templates within its system, including letterhead, memo and fax. Using these templates will ensure that the correct layout, font style and size are used. It is important that we work to the corporate style guide for all our written communication and further information can be found on the intranet. E-mails should be signed off in the following format: Anita Tysoe Service Manager: Customer & Theatre Services



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Gravesham Borough Council Tel. 01474 33 73 60 e-mail. [email protected] Gravesham – Connecting with the Community Comments and feedback (positive and negative!) Our customer’s comments provide valuable feedback about how our services are received and where we can make improvements. These comments can be as important as the information available through other public sources – but it’s free and direct from the people who actually use and experience our services. Encouraging comments and feedback For every person who criticises the Council there are many more who feel aggrieved but do not complain. What they will do, however, is tell others (friends, relatives, neighbours, colleagues) anyone who will listen, about how dissatisfied they are. It is much better to encourage our customers to tell us about the problem, so that we can rectify the situation immediately and with a positive response. Complaints A complaint is an expression of dissatisfaction about the standard of service, action or lack of action by the Council and its staff, affecting an individual or group of people. A complaint is not: -

a request for service (e.g. ‘my central heating is not working, can someone check it out please?’);

a request for information (e.g. ‘how do I go about claiming Housing Benefit?’).

Gravesham Borough Council takes all complaints seriously and has developed a corporate complaint procedure which sets out the process for dealing with complaints. For further details please refer to the procedure or contact the Service Manager, Customer & Theatre Services on extension 73 60. The Council’s Monitoring Officer The Council is required by law to appoint a Monitoring Officer who has a wide range of powers to investigate and report to the Council or Cabinet on matters involving illegality, maladministration or injustice. The Monitoring Officer at Gravesham is Mike Hayley the Assistant Director, Governance & Law, who must be advised immediately of any complaint, which alleges illegality, maladministration or injustice. The Monitoring Officer will decide if he needs to call for a fuller report or take over investigation of the complaint



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Members of the public may, on occasion, make complaints direct to the Monitoring Officer. Such complaints will normally include a suggestion of illegality, maladministration or injustice at member of officer level or both. The Monitoring Officer will call for information and comments from any relevant source and will deal with the complainant direct. Staff and members involved will be advised of the result(s) of the investigation. The Monitoring Officer is also responsible for investigating such matters when they affect the Parish Councils within the Borough and for referring issues to the Standards Board of England when appropriate. For further information please refer to the council's Corporate Complaints Procedure in the staff portfolio. Dealing with Correspondence and Complaints In many cases if you deal with problems immediately the matter rests; but failure to handle it correctly can give rise to complaints, which may be much more difficult and time consuming to resolve. We receive a wide variety of complaints, criticisms, comments, suggestions and requests from our customers and it is important that we record them properly, so we can base subsequent services on this detailed knowledge. For some services the collection of this information may be required by law or for effective contract supervision or monitoring. Respond promptly All correspondence must receive a response within five working days. This can be by letter, personal visit or telephone call. Record details of your response, including the date and attach it to the original correspondence. Delayed response If it is not possible to give a full response within five working days, a holding reply must be sent. This reply must acknowledge receipt, advise who is dealing with the matter and the date by which a full reply should be received (preferably not more than 10 working days). If there is any subsequent delay in replying, you must write (within the time you first indicated) apologising for the delay, explaining why there is a delay and indicating the revised date. Only in exceptional circumstances should the total reply time exceed one month. Compliments, Comments and Suggestions All too often people highlight the bad things – poor service, unsatisfactory responses – and forget to recognise all the times we get it right (because, after all, it is our job to get it right!). So when you receive a compliment, log it and circulate it to other officers. If a customer speaks to you about an example of good service, invite them to put it in writing so that you can share it with your colleagues.



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Similarly if a customer makes a suggestion or comments on how we could improve our service, make a note and refer it to your line manager. Customers are excellent judges – they experience our service as it really is!



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Appendix 3. Write Off Policy The council recognises that where a debt is irrecoverable, prompt and regular write off of such debts is good practice. The council will seek to minimise the cost of write-offs by taking all necessary action to recover what is due. All debts will be subject to the full recovery, collection and legal procedures as outlined in the council’s Corporate Fair Debt Policy. Annex 1.13 of the council’s constitution Part A “Functions Delegated to all Chief Officers” lists one of these being: “(13) To write off debts subject to a maximum of £1000”, subject to the limitation of: “The Assistant Director (Finance) being notified of any such write – offs and the Leader of the Executive being informed of these on a quarterly basis”. Debts may be referred to the appropriate Service Manager / Director for all sums for write-off in the following circumstances:

The council has evidence to confirm the claimant is suffering a severe physical or mental illness, which renders enforcement action inappropriate.

The council is unable to trace the debtor.

The debt is not cost-effective to pursue due to small balance.

The debt is not cost-effective to pursue due to the likelihood of payment balanced against the cost of proceedings.

The claimant has died and there are no or insufficient funds in the estate to settle the debt.

The claimant is subject to formal insolvency proceedings and there is little likelihood of a dividend.

The debt is statute barred, i.e. more than six years old.

1 Sundry Debts, Council Tax and Non Domestic Rates and Parking Enforcement

The relevant Service Manager/ Assistant Director has to sign the list to approve them and return the list to the relevant Section, who then forwards the details, split between under £1,000, between £1,001 and £5,000, between £5,001 and £10,000 and between £10,001 and £15000 to the officer responsible to carry out the write off process. For sundry debts, the Exchequer Manager writes off debts from the Debtors System, for council tax and non domestic rates, the relevant officer writes off debts from the Northgate System. Debts up to £1,000 can be authorised by a Director or any Assistant Director. Debts up to £5,000 must be authorised by the Service Manager – Finance and debts from £5,001 to £15,000 must be authorised by the Director of Finance and Environment. Lists to be submitted on a quarterly basis. If the sum is greater than £15000 the details are submitted as a Part B item to the next Cabinet for approval in the name of the Service Manager, Finance. Once



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approved the relevant officer will process the write offs from the appropriate system as detailed above.

2 Debts on Other Systems For debts on systems other than sundry debtors, council tax and non domestic rates, Service Managers should provide a signed list of debts, split between over and under £15000 to the Exchequer Manager. The appropriate Service Manager is responsible for arranging the write off from their system if the debt is under £15000. However, it is strongly advised that they check with Internal Audit before doing so to ensure that there is sufficient division of duties. For debts over £15000, the Exchequer Manager will inform the Service Manager when the write offs have been approved by Cabinet, so they can arrange for write off from the relevant systems.

3 All Systems Before a debt is written off from any system, the member of staff identified as being responsible for write offs, should have received all the related paperwork and used it to check a sample of the debts to ensure:

accuracy by looking them up on the appropriate system;

the council’s Corporate Fair Debt Policy has been adhered to.

4 Extreme Hardship Should a debtor be experiencing genuine financial hardship they can contact the Council for advice on the best way forward to manage their debt(s) owed to the Council. This may include a repayment plan to cover more than one debt i.e. one affordable monthly payment from a debtor which will be allocated across several council functions on a pro rata basis. In cases in which a debtor is experiencing extreme hardship, the Council may consider that a debt or part of a debt may be written off. It should be stressed that the Council reserves the right to undertake enhanced checks with internal and external agencies prior to agreeing to such action.

5 Write On Policy The council recognises that in cases of a credit remaining on an account for an unacceptable period of time i.e. over thirteen months, the credit should be considered for write off. This process is known as a “write on”. Extensive research should be undertaken prior to this consideration to enable an attempt to be made to inform the payee of the credit. Letters to the last known address must be written and searches carried out to establish new addresses through the Council’s Experian Search System. If such attempts are not successful, the credit should be written on following the same policy rules and processes as detailed in the write off policy.

Corporate Fair Debt Policy - Home - Gravesham Borough · PDF fileThe purpose of the Corporate...

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Transcript of Corporate Fair Debt Policy - Home - Gravesham Borough · PDF fileThe purpose of the Corporate...