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You can find the current article at its original source at https://www.theguardian.com/money/2018/jul/26/mps-rebuke-councils-for-overzealous-use-of-bailiffs
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| MPs rebuke councils for 'overzealous' use of bailiffs | MPs rebuke councils for 'overzealous' use of bailiffs |
| (4 months later) | |
| Councils are driving poor people further into financial difficulty by using bailiffs “overzealously” to pursue households that have failed to pay council tax, according to a damning report by a committee of MPs. | Councils are driving poor people further into financial difficulty by using bailiffs “overzealously” to pursue households that have failed to pay council tax, according to a damning report by a committee of MPs. |
| In 2016, around 2.3m debt cases were passed to bailiffs by local authorities, according to data given to the House of Commons Treasury committee. | In 2016, around 2.3m debt cases were passed to bailiffs by local authorities, according to data given to the House of Commons Treasury committee. |
| It said: “These debts are often pursued overzealously, and with routine recourse to bailiffs. The public sector should be leading by example in their treatment of the most financially vulnerable; but the current approach risks driving them into further difficulty.” | It said: “These debts are often pursued overzealously, and with routine recourse to bailiffs. The public sector should be leading by example in their treatment of the most financially vulnerable; but the current approach risks driving them into further difficulty.” |
| MPs said the “uncompromising” approach by local and central government to debt collection should be reformed to meet best industry standards. | MPs said the “uncompromising” approach by local and central government to debt collection should be reformed to meet best industry standards. |
| The report highlighted evidence from the debt charity StepChange, one-third of whose clients had council tax arrears averaging £1,000. Phil Andrew of the charity said: “Often the governmental organisations are very aggressive in the way they go about getting the payments made. This quick jump to the use of bailiffs is something that we are really quite concerned about” | The report highlighted evidence from the debt charity StepChange, one-third of whose clients had council tax arrears averaging £1,000. Phil Andrew of the charity said: “Often the governmental organisations are very aggressive in the way they go about getting the payments made. This quick jump to the use of bailiffs is something that we are really quite concerned about” |
| Threats from bailiffs were thought to be a factor in the suicide of courier Jerome Rogers, 20, who was pursued for two £65 parking fines that escalated to a debt of £1,019. The case prompted calls for sweeping changes to the way the debt collection industry works. | Threats from bailiffs were thought to be a factor in the suicide of courier Jerome Rogers, 20, who was pursued for two £65 parking fines that escalated to a debt of £1,019. The case prompted calls for sweeping changes to the way the debt collection industry works. |
| Earlier this week the personal insolvency firm Creditfix said it had identified 55 councils across the UK that routinely rejected payment plans offered by those in financial difficulties, leaving those affected with no other choice than to file for bankruptcy. | Earlier this week the personal insolvency firm Creditfix said it had identified 55 councils across the UK that routinely rejected payment plans offered by those in financial difficulties, leaving those affected with no other choice than to file for bankruptcy. |
| Gillian Guy, chief executive of Citizens Advice, welcomed the report. “MPs are right to acknowledge that government agencies and local authorities are worst in class for debt collection when they should be leading by example. Reforms in 2014 were introduced to protect people from unfair practices. It is clear these changes have failed,” she said. | Gillian Guy, chief executive of Citizens Advice, welcomed the report. “MPs are right to acknowledge that government agencies and local authorities are worst in class for debt collection when they should be leading by example. Reforms in 2014 were introduced to protect people from unfair practices. It is clear these changes have failed,” she said. |
| The Treasury committee’s wide-ranging report into debt and household finances also made a series of other recommendations, calling on the Financial Conduct Authority to urgently introduce caps to high-cost credit, including overdraft fees. | The Treasury committee’s wide-ranging report into debt and household finances also made a series of other recommendations, calling on the Financial Conduct Authority to urgently introduce caps to high-cost credit, including overdraft fees. |
| It also called for reform of the tax relief on pension contributions, describing it as an ineffective way of incentivising saving into pensions. | It also called for reform of the tax relief on pension contributions, describing it as an ineffective way of incentivising saving into pensions. |
| Nicky Morgan MP, chair of the Treasury committee, said: “Over-indebtedness, lack of rainy day savings and insufficient pension savings are some of the weaknesses in the household balance sheet identified in this inquiry. | Nicky Morgan MP, chair of the Treasury committee, said: “Over-indebtedness, lack of rainy day savings and insufficient pension savings are some of the weaknesses in the household balance sheet identified in this inquiry. |
| “The committee’s report makes a series of recommendations for the government to consider that would help households ensure that their finances are as resilient as possible. Whilst financial service regulators and guidance bodies have important roles to play, the government should not pass the buck to them.” | “The committee’s report makes a series of recommendations for the government to consider that would help households ensure that their finances are as resilient as possible. Whilst financial service regulators and guidance bodies have important roles to play, the government should not pass the buck to them.” |
| Borrowing & debt | Borrowing & debt |
| Poverty | Poverty |
| Debt relief | Debt relief |
| Local government | Local government |
| Council tax | Council tax |
| Household bills | Household bills |
| Consumer affairs | |
| news | news |
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