Council tax debt leading local London councils to instruct intimidating bailiffs at the early stages causing some struggling families to be unable to pay for food and utilities who then turn to and get trapped by payday loan companies.
A very troubling article came out last week by The Guardian newspaper regarding some councils in London causing financial stress and mental health issues from the pressure exerted to struggling families to repay council tax debt. Some families are unable to even support the basic needs of their families, let alone be able to afford monthly payment plans to repay council tax debt.
What happens next? They fall into the terrible trap of payday loan companies just to turn away the literal baliffs knocking at their doors and find themselves locked into an even worse situation with 3000%+ interest rates to repay amounts levied by these terrible "shark" companies.
Luckily some London councils are considering far more ethical ways of collecting these outstanding debts and it is a constant issue for councils. Not to mention, these outstanding debts absolutely need to be repaid. However, employing practical, effective, communicative but ethical debt collection procedures is the key especially when dealing with consumer-related debt rather than business to business debt. Utilising baliffs of course is part of that debt collection process, if it absolutely has to come to that stage in the process, but certainly not straight off from the starting grid.
Read the full article at https://www.theguardian.com/commentisfree/2018/sep/10/boot-out-bailiffs-debt-collection-councils-ethical-schemes
So how are we different?
Well, Credit Control UK are a Credit Control company first and a debt collection company second. All of our credit control follows a very strict process where our credit controllers are professional, polite but firm with your debtors. If an outstanding invoice or debt does have to transfer to debt collection, the same ethos applies to a different process.
However it involves specific letters and forms to collect the debt in an ethical and professional manner. If the matter has to progress further, then there are court applications and court appearances, orders issued by the courts to legally repay the amounts owed. Then and only then if the debt still remains unpaid and you and we feel the debt can continue down further routes to collect the amounts owed, then courts can enforce judgements where external parties are instructed such as bailiffs, sheriffs are used, together with other methods such as asset freezing and property charging.
Simply “sending in the heavies” is very much a long way down very methodical processes. And in all honesty, for it to get to that stage it’s as a result of your debtor showing little or no communication with you and us, outright refusal to either repay the debt, they do not believe or do not want to believe that the debt is legally to be repaid by them, or they are just unwilling to negotiate to come up with a satisfactory repayment amount.
We work with UK SMBs to recover outstanding invoice debt in a professional, firm and polite manner, mirroring the service and ethos of your business. Contact us on 020 8720 7309 for more information and how we can help you.