Tips encourages poor people in financial difficulties with the help of bailiffs “overzealously” to families who do not pay Council tax, according to a damning report by a Committee of MPs.
In 2016 about 2.3 m cases, the debts were handed over to bailiffs by local authorities, as reported in the house of Commons Treasury Committee.
He said, “these debts are often pursued overzealously, and with the usual appeal to the court bailiffs. The public sector should lead by example in their treatment of the most financially vulnerable, but the current approach risks driving them into further difficulties.”
Told deputies “uncompromising” approach to local and Central government, the recovery of debts should be reformed in accordance with the best standards.
The report highlighted evidence from the StepChange debt charity, a third of clients whose Council tax arrears average £1,000. Phil Andrew’s charity said: “often, government organizations are very aggressive in how they go about getting payment. This rapid transition to the use of bailiffs is that we’re really concerned”
Threats from the bailiffs was considered a factor in the suicide Express Jerome Rogers, 20, who had two £65 Parking fines, which escalated into debt in the amount of 1,019. If the request requires a fundamental change in the way the debt collection industry and Construction.
Earlier this week in personal insolvency firm Creditfix said it had identified 55 councils in the UK, which is regularly opposed the plans of payment provided in financial difficulties, leaving the victims with no other choice but to file for bankruptcy.
Gillian guy, head of citizens advice, welcomed the report. “The deputies have the right to recognize that public institutions and local authorities are the worst in the class to recover debts when they should be an example. Reforms in 2014 was introduced to protect people from unfair practices. Obviously, these changes have not succeeded,” she said.
Wide Treasury Committee report into debt and household finances also made several other recommendations calling on the Office of financial regulation and immediately enter caps with the high cost of credit, including overdraft fees.
Subscribe for daily business today email or follow the business Guardian on Twitter @BusinessDesk
He also called for reform of tax relief on pension contributions, calling it an inefficient way of stimulating savings for retirement.
Nicky Morgan, MP, Chairman of the Treasury Committee, said: “excessive debt, no rainy day savings and inadequate retirement savings are some deficiencies in the balance of household identified during this inspection.
“Report of the Committee contains a number of recommendations for government to consider, which will help households make sure their finances are as stable as possible. While the financial services, regulatory authorities and governing bodies must play an important role, the government should not blame them”.