Collecting council tax debts creates a problem for most councils in the country, but in Dundee the problem has grown to the point where watchdogs are asking the local authority to reduce council tax to make it more affordable.
A total of 5,323 homes where in debt over council tax according to recent information release in the local press with the council now requiring professional debt recovery agents to retrieve the money owing.
Debts owed per household average £436.88 even though the council has reportedly done all it can to make it easy for people to pay either online or over the phone and with an option to pay by direct debit.
Handing the debt over to a collection agency was a last resort according to a spokesperson for Dundee council. The situation highlights how failing to act on debts quickly can soon create a problem for councils when they attempt to chase homeowners for payment.
A professional debt collection agency used early in the process can save time and possibly lead to better outcomes for councils having problems with debt collection. The problem with debt is the longer it is allowed to accumulate the harder it is to recover all of the money owing.