When it comes to debt recovery, Citizens Advice have found that councils are better at chasing repayments of debt than government departments such as the DWP and HMRC.
The HMRC has received plenty of criticism for the way it pursues people who are in debt and this has led to a poor rating for debt recovery, particularly when it was compared to water companies who came out top in the Citizens Advice survey.
The findings highlight the importance of balancing the need to recover debt with the effect this may have on an organisation’s reputation. This includes recognising the difference between people who can’t pay and the people who simply won’t pay.
Local authorities came second in the Citizens Advice league table of public and private sector creditors. The charity looked at various factors including how the handling of disputes and payment payment plans.
Gillian Guy, chief executive of Citizens Advice, said: ‘It’s unacceptable that government agencies are behind the standards set for private companies when recovering debt. National government, private firms, utility providers and debt advice specialists need to get together and urgently agree a fair and consistent way forward.’
If you are concerned about how your business handles debt collection it is always worth seeking debt recovery advice from our experts to ensure that you are operating according to current guidelines.