The FCA’s remit will not presently expand to sector that is public collection — a problem your debt advice sector is continually butting up against.

The FCA’s remit will not presently expand to sector that is public collection — a problem your debt advice sector is continually butting up against.

The knock during the door

Many research reports have criticised local councils for rapidly resorting to bailiff enforcement for reasonably tiny debts, frequently via a automatic process.

“Council income tax collection is really so aggressive it pitches people into an emergency,” claims Alistair Chisholm, mind of policy and partnerships at PayPlan. “If you skip only one repayment, while the reminder, you automatically lose the best to spend in month-to-month instalments. You then get a bill when it comes to great deal, and the court expenses, that may add another £60 to £120 into the financial obligation. Then much more expenses would be added. if councils deliver a bailiff — and additionally they overwhelmingly do —”

PayPlan’s own research discovered that significantly more than 62 individuals in England and Wales had been imprisoned for non-payment of council income tax in 2016-17. Court action for committal to jail ended up being taken against very nearly 5,000 other people. Continue reading →