ENFORCEMENT OPINION Callingdebt
Paul Sharpe looks at how parking enforcement fits within a corporate approach when managing debt
IN THE W
ith the country seemingly stuck in recession and the cuts to local government
budgets set to bite even deeper, many councils are seeking to apply a corporate approach to their customers. This can present different challenges for the enforcement agent with competing demands.
With a corporate debt approach, profiling an individual’s total debt or liability requires council departments to move away from individual departmental silos to a flatter, more sharing, approach. This process usually requires the transfer of collection responsibilities to a centralised or bespoke debt-management team at an agreed point in the process.
The application of this corporate or total debt approach gives local authorities the opportunity to look at an individual’s total liability and apply a more co- ordinated approach. It also provides the debtor with a greater clarity of their debt
and, ideally, one point of contact when attempting to resolve it. The enforcement agent will be presented with, potentially, multiple debts for the same debtor for differing amounts, often with differing collection priorities.
How this approach works in practice – and the issues it presents to the enforcement professional – are another matter, however.
ABOUT the AUTHOR: Paul Sharpe is sales and marketing director of Equita, a member of the CIVEA executive committee and chairman of the BESIG
www.britishparking.co.uk
The procurement process The letting of Corporate Debt Collection/ Enforcement contracts is becoming the norm. Usually, when seeking to cover the recovery of arrears of council tax, business rates, parking debts and miscellaneous debts, such as benefit overpayments,
contracting out provides local authorities with the opportunity to run one procurement process. However, this joined-up approach can present issues for parking professionals. As with all joint processes, the demands of each service area may vary. The decision- making process, and by whom the decision is made, becomes crucial. Does the parking manager want to be forced to use a firm with little or no experience in their area, or in collecting their debt type? Do they want to be forced to select a firm without the equipment or expertise needed to enforce warrants for parking offences? Engagement in the process is crucial.
The contract
Once the contract is let, the manner in which the enforcement agent delivers the service is important, and needs to be established from day one.
Council tax will usually be dealt with
first, which presents the parking manager with a problem
Classification of debts by priority is standard when seeking to advise a debtor, who may be unable to meet all of their commitments.
Considered a priority debt, council tax will usually be dealt with first, which presents the parking manager with a problem and the enforcement agent with competing demands. The ability to negotiate a payment plan that reflects the individual’s total debt may ensure that the plan is maintained, albeit with the liability taking longer to discharge. A corporate approach is undoubtedly sensible, but it is important that parking mangers play a full and active part in the selection process and, once selection is made, clearly set out their requirements. In turn, the chosen agency should have experience in the recovery of all debt types and employ bailiffs with the required knowledge and expertise.
SEPTEMBER 2012 29
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