IMA conference bdac - bailiffs action

Improving relationships with and working Improving relationships with and working practices of local authorities.practices of local authorities.

Tamra ManninTamra ManninBristol Debt Advice CentreBristol Debt Advice Centre

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IntroductionIntroduction

BDAC providing free advice 21 years

Increased number of clients with complaints and problems in dealing with council tax & bailiffs

Bailiff Survey over 1 year period

PPIP Project running for 2 years

Which is the Odd one out?Which is the Odd one out?

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Aims of the workshopAims of the workshop

To engage your local authority in meaningful dialogue.

To effect change to obtain a better deal for your clients.

To make your life a bit easier as an advisor.

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Waking up the Graveyard ShiftWaking up the Graveyard Shift

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How it used to be – Frank makes a How it used to be – Frank makes a call….call….

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Bailiff Survey - Fact findingBailiff Survey - Fact finding

Who’s in charge of the bailiffs?

LA service level agreements for bailiff collection

LA’s internal guidelines for payment arrangements

What LA’s do – what is law and what is local policy?

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Bailiff SurveyBailiff Survey

1 year

Other local agencies fed into project

Included information of over 40 cases

Focus was to examine the experience of people dealing with the council tax department and their bailiffs

Our Key Findings Were :-Our Key Findings Were :-

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92% did not think the bailiff had been helpful

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68% of the clients identified that they were vulnerable.

100% felt their vulnerability was NOT taken into account.

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85% said the bailiff did not take their financial circumstances into account.

70% contacted the Local Authority.

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• Only one person reported this to be successful.

• And that was only successful because a benefit appeal had cleared his arrears!

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Some of our recommendations to LASome of our recommendations to LAThe council should use deductions from benefit in preference to bailiffs and where this is not possible they should not send to bailiffs if information held of vulnerability.

The council should inform the customer where to obtain independent advice on their notices and letters.

When approached the council should deal with the council tax payer and not insist they deal with the bailiff company.

The council should not send accounts to more than one bailiff company for collection.

Where an advice centre raises a complaint, the council should acknowledge its responsibility.

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LA FeedbackLA Feedback

We received an Official Response from the Head of the Council Tax Department

The response disputed many of our conclusions and didn’t invite further exploration

This propelled us to look for funding to take this social policy issue further

PuttingPutting Policy Into Practice ProjectPolicy Into Practice Project

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So then…So then…

Regular meetings with Group Leaders at council tax department

Presentations to council tax staff

Group Leaders met with advice staff at BDAC and other advice agencies

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What were the key issues?What were the key issues?

•Council Tax staff refusing to intervene with cases where bailiffs involved

•Concerns by council tax that existing advice provision would not cope with referrals

•Slow and cumbersome process when dealing with council tax debts.

•A presumption by council tax that clients were “won’t pay” rather than “can’t pay”.

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What was agreed:What was agreed:

•Fast track telephone number

•30 day hold and instruction to bailiff companies to accept affordable repayment arrangements.

•Customers in arrears asked if they would like independent debt advice.

•A specific Council Tax Clinic and direct referral system for appointments.

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Benefits to clientsBenefits to clients

Affordable arrangements in place sooner avoiding higher costs

Reduced requirement to deal with bailiff companies is less stressful for clients

Advice is made available where multiple debts

Accounts are not sent to bailiffs where notes on file that customer is vulnerable

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Benefits to LABenefits to LAMore people maintaining payment arrangements

Fewer accounts where excessive bailiff costs have to be recovered first

Referral system in place for debt advice

Input on working practices from the advice sector

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Benefits to bailiff companiesBenefits to bailiff companies

Payment arrangements set up easier and more likely to be maintained

More likely to be successful in bidding for contracts with local authorities if they can show that they are working collaboratively with advice agencies

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Benefits to Advice centresBenefits to Advice centres

Quicker process for dealing with council tax debts enables us to assist more clients

Less need to compose long complaint letters

No need to complete a financial statement

Setting up affordable arrangements means there is less knock-on effect on other debts

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Bonus benefit! – Corporate Debt PolicyBonus benefit! – Corporate Debt PolicyWider influence – rent, benefits, parking

Simplifying and re-designing customer letters

Every £1 invested in financial capability, affordable credit and an integrated service between LA’s and advice agencies generates £8.40 for local region.

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Frank makes another phone call….Frank makes another phone call….

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Taking it forwardTaking it forward

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Thanks for listening!Thanks for listening!