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CARS - Collection Rate Improvements
Increasing Level of Debt
The increased level of
Council Tax charged each year, if not matched by an increased
collection rate, leaves a growing level of arrears to be
collected. The graph below is a typical representation, in the experience
of Merchant Software Limited, of the growing level of arrears
outstanding within Councils for each year since the
introduction of Council Tax in 1993/94.
Early and Appropriate Intervention
Debtors become
accustomed over time to the 'standard' recovery process.
Varying the approach by taking timely additional action
against each category of debtor has been shown to provide
results. Different approaches can be taken for those
able to pay and those not. CARS provides the facilities
to categorise the debtors and initiate the required recovery
action.
Next Page: Arrears
Recovery
Previous Page: CARS
Overview
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Arrangement
Tracking
Voluntary arrangements
agreed with Debtors are often broken. Where this is not
followed up swiftly, payments will cease and the agreement
lapse. CARS monitors each arrangement closely, using
agreed guidelines and generates Broken Arrangement letters
promptly. The system also checks each arrangement
against the guidelines for repayment period and also the
number of broken arrangements each Debtor is allowed.
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