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Councils to Utilise Private Debt Collection

Local councils are being urged to utilise private debt collection agencies due to high volumes of debt being written off.

Speaking to the Enfield Independent Councillor Daniel Pearce said that councillors should contract private debt collection companies with specialist technology to recover more of the cash, especially at a time when budgets are being squeezed.

Cllr Pearce made the declaration after figures were released showing the council was writing off more than £500,000 of bad debt each year. This year the council has written off £193.415.57 in housing benefit overpayments, £249,316.47 in unpaid business rates, and £125,858.49 in unpaid council tax.

It stands to reason that a debt collection agency would have more success in the recovery of the outstanding debts, having the time, resources and expertise to focus solely on the task. Furthermore, the time and money saved by the council means their own resources can be focused on other areas which in turn could have a positive knock on effect for the community itself.

Any council who would like assistance with outstanding bad debt should contact Federal Management on 0844 875 4022 to discuss the options available.