We’ve previously written about how bailiffs and High Court Enforcement Officers (HCEOs) will act if you or your business receives a County Court Judgement (CCJ).
A new report from the Credit Services Association (CSA), the trade organisation for the debt collection and debt purchase industry, is taking their reputation and public perceptions seriously.
They are appealing to the government to improve its methods for collecting debts to help them operate more effectively and boost revenue collections.
The report praises the accomplishments of the Government Debt Management Function and the Treasury’s cross-government “Fairness Group” but highlights the need for continued progress and a focus on working more closely with local governments.
Daniel Spenceley, Head of Policy at the CSA, said: “Public sector collection practices have made progress in recent years but they continue to be outshone by the private sector.
“When it comes to debt collection, the general public should be able to expect similar treatment and similar support, regardless of who they owe money to. At present, that is not the case – especially when it comes to vulnerability support and forbearance for those in most need.”
“We recognise the challenges that face the government, both central and local, when there are gaps in their funding, and the pressure that this can place them under. But the standards seen in private sector collections demonstrate that better practices and healthy recovery rates can go hand-in-hand.”
The CSA report identifies several opportunities for improvement including expanding the scope of the Government Debt Management Function’s Fairness Charter, which sets high-level standards for central government departments recovering debt including local government across the UK.
The CSA also notes that central government communication strategies such as referencing potential imprisonment or demanding a full year’s council tax bill, may be hampering their own ability to generate meaningful engagement with the public.
Spenceley concluded: “The tone and content of collections communication is often critical to positive engagement with individuals, their companies and local councils may be shooting themselves in the foot by starting their conversations in a needlessly adversarial manner.
“We have long advocated for a compassionate and constructive approach to early arrears communications and believe this would go some way to improved engagement with councils and government departments.”
Receiving a CCJ can be a sobering experience for any director or business owner, especially if they weren’t expecting enforcement action from creditors.
If directors don’t tackle their CCJ in a serious and timely manner then they could eventually see their company closed down through a compulsory liquidation which is a far less enticing prospect.
Especially as if they get in touch with us early, there are several alternative options they could consider to support their company including administration or a Company Voluntary Arrangement (CVA).
If you’ve received a CCJ then get in touch with us as soon as you can.
We can let you know what your immediate options are and what you can do – right now – to help protect the business you’ve spent months and years building from CCJs, creditors and other financial threats.