Equitable debt collection

We are committed to providing the right service to all residents, ensuring that there is a fair approach to collection.

We are required to have a robust approach to collection to ensure the financial stability of the council and enable the continuation of services funded by collection activities. 

We will review and exclude persons whose circumstances would make it unfair or harmful for us to proceed with debt recovery action. 

Vulnerability

We define vulnerability as a situation in which an individual's personal circumstances mean they are at significant risk of detriment from debt recovery action. 

We will review with discretion the circumstances of all debtors to ensure that the right approach is being taken.

Where a vulnerability is identified further information may be requested in the form of a financial statement. You may be asked to complete this and return it, enabling us to understand your circumstances and assess if any change from our usual recovery process is required.

Here are some some examples of where we will consider putting debt recovery on hold or exclude it permanently.
 

Examples of our approach to applying exclusions pr pauses to debt recovery action
CircumstanceTypical ApproachReasoning
Life-limiting conditionPermanent exclusion from standard recovery action.Continuing recovery would likely cause significant detriment and is inconsistent with GOVS-014 fairness principles.
Lack of legal capacity (for example, under Court of Protection, LPA in place)Suspension or exclusion until a deputy or attorney actively engages.Person cannot legally manage their own affairs; recovery would be unfair without proper representation.
Active safeguarding concern (child or adult)Suspension or exclusion until safeguarding issues are resolved.Safeguarding takes precedence; recovery only resumes once risk has been addressed.
Domestic or economic abuseSituational exclusion - suspend or modify recovery while the person is in crisis, review periodically.The person may regain stability and ability to engage; fairness requires flexibility but not necessarily permanent exclusion.
Severe but temporary mental health crisisSituational exclusion - suspend action and signpost to support; review after defined period.Condition may improve and capacity return; reassess before resuming recovery.
Recent bereavementSituational exclusion - pause action for a set period (for example. 3 to 6 months), then review. Recognises temporary vulnerability but allows recovery to recommence later.
Life-limiting conditionPermanent exclusion from standard recovery action.Continuing recovery would likely cause significant detriment and is inconsistent with GOVS-014 fairness principles.

All decisions must be based on up-to-date information about the individual’s circumstances. Exclusion does not prevent future recovery if circumstances change; equally, permanent exclusions should be reviewed only if there is a clear change in the underlying situation.

Permanent exclusion applies where a medical professional confirms that the individual has a life-limiting or terminal condition which is expected to result in death within a short timeframe or where their condition permanently prevents them from managing their own affairs.