We can't help everyone, but everyone can help someone. Ronald Reagan
Idea Transcript
FIN011
HAVEBURY HOUSING PARTNERSHIP POLICY
SUNDRY DEBT COLLECTION AND DEBT RECOVERY
Controlling Authority - Director of Resources Procedure Number FIN011 Issue No 2 Status – Final Date – July 2014 Next Review Date: July 2017 Equality & Diversity Impact Assessment carried out – 4th April 2011 Impact - Low
Finance/Sundry Debtors/Policies & Procedures
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SUNDRY DEBT COLLECTION AND DEBT RECOVERY 1.
Purpose
1.1
The Havebury Housing Partnership (hereafter known as Havebury) will seek to collect charges promptly from sundry debtors.
1.2
Sundry debt payments will be made in full or an arrangement plan will be set up if the debtor has difficulty in paying in full.
1.3
Havebury will provide assistance to enable sundry debtors to agree a sensible repayment plan for any debt owing.
1.4
Havebury would only as a last resort use the Court if all action had been taken to chase the debt. In practice this would only be done when a sundry debtor had ignored an agreement to pay off debt without a good reason, or had ignored all contact from the Revenues Advisor for Havebury.
1.5
All debtors of Havebury have various methods of payment available to them.
1.6
Havebury will have a firm but fair approach to sundry debtors who experience difficulty paying their debt.
2.
Scope
2.1
This policy extends to all sundry debtors, which includes leaseholders, current and former tenants of The Havebury Housing Partnership and private individuals/organisations.
3.
Responsibilities
3.1
The Resources Committee of Havebury having formally adopted this policy on Sundry Debt Collection and Debt Recovery accepts responsibility for its implementation and for monitoring its effectiveness.
3.2
Sundry debt and debt recovery will be monitored on a quarterly basis by Management Team.
3.3
Day-to-day responsibility lies with Havebury's Chief Executive and the Management Team.
3.4
Issue Control - management of duly authorised policies, procedures, and any work instructions will be the responsibility of the Director of Resources who will ensure they are circulated to appropriate individuals and that they are kept updated with current versions.
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4.
Method - Payment Choices
4.1
A wide range of payments will be offered as follows: i. ii. iii. iv. v.
Direct Debit or standing order Cash or cheque to post offices Cheque to Havebury By online payments Over the phone.
4.2
All sundry debtors choosing to pay at the Post Office will be issued with a giro slip enabling them to make payments.
4.3
Havebury will provide to sundry debtors statements on request.
Sundry Debt Recovery 4.4
All invoices are to be paid immediately or a payment arrangement is to be made. The following steps will be taken in chasing the debt: i.
If a sundry debtor has an outstanding amount on their account the sundry debtor will receive a reminder letter after 30 days.
ii.
Wherever possible personal contact with a sundry debtor who has a debt will be sought as soon as possible but certainly before seeking Court action.
iii.
Havebury will seek to make a claim on sundry debtors who do not make an arrangement to repay outstanding debt, or where such an agreement has been broken. The sundry debtor would also be warned prior to such action being taken.
iv.
If Havebury seek to make a claim to the court and the sundry debtor makes an agreement to repay the debt, no County Court Judgement will be requested. If the sundry debtor does not repay the debt an outright County Court Judgement will be sought.
v.
A County Court Judgement would only be considered for debts over £100.
4.5
Court action will only commence after consideration has been given to any extenuating circumstances, and an individual's financial position has been reviewed.
4.6
Havebury, in cases of hardship, will be proactive in offering alternative payment methods such as payment by installment.
4.7
Invoices will only be raised for amounts above £5 as it is uneconomic for Havebury to invoice for amounts less than this.
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Partnership Working 4.8
Havebury will work with any agencies who are supporting and assisting sundry debtors to maintain their debts, e.g. Mental Health Services, Probation.
4.9
Havebury will support and encourage the involvement of voluntary sector organisations working with individual sundry debtors.
Specific Needs 4.10
Every effort will be made to identify sundry debtors who may need particular assistance. Havebury will recognise some sundry debtors will have specific needs, e.g. access to interpreters during interviews. Support will also be provided for sundry debtors by referral to specialist organisations or other agencies as appropriate. The translation of printed material will be undertaken where appropriate.
4.11
Home visits will be available to sundry debtors unable to attend an appointment in the area office.
Financial Inclusion 4.12
Havebury will signpost where sundry debtors can apply for basic bank accounts.
4.13
Havebury will use its best endeavours to ensure sundry debtors have access to a credit union facility to ensure that financially excluded people have the opportunity to save and borrow money at a favourable rate. However, Havebury does not expect sundry debtors to borrow money from a credit union or any other source to repay debts to Havebury. A payment plan can be entered into instead.
4.14
Havebury will advise and support sundry debtors in order to ensure that there are options for loans which are not from providers where exceptionally high rates of interest are paid.
Incentive schemes 4.15
Havebury will promote on a positive basis incentives to encourage sundry debtors to pay their debt.
5.
Monitoring
5.1
Havebury will monitor debt recovery performance annually by reporting the following indicators to Finance & New Business Committee as part of the annual sundry debt write off report: i.
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Number of invoices raised in the period and amount
5.2
ii.
Percentage of income collected versus income raised
iii.
Debt written off as a percentage of income raised
iv.
Number of County Court Judgements
v.
Number of payment arrangements set up when applied for court action
vi.
Any other data required by the Regulator.
Havebury will aim to ensure that debt aged over 30 days remains below 40% of total sundry debt and sundry debt aged over 90 days remain at below 25% of total debt.