Policy Corporate Debt policy

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3. Key principles

The following key principles are common to all types of debt:

  • The difference between priority and non-priority debts (see appendix 1).
  • To promote a professional, consistent and timely approach to recovery action.
  • To maximise income by using the most appropriate and effective methods of debt recovery.
  • To encourage debt prevention at the earliest stage.
  • Aim to clear annual charges within the year they are raised. Where income levels do not allow repayment within the year raised, we will seek to meet an agreement that balances repayment of the amount owed as soon as possible against the individual needs of the resident.
  • Ensure that debts are recovered in accordance with legislation.
  • To treat individuals fairly and consistently.
  • To take account of findings from debt advice agencies and our internal teams who are providing support for those experiencing financial hardship.
  • To comply with Breathing Space legislation that restricts the recovery action that we can take for any period of time.