HMRC and Deb Collection agencies

[frisp]

Based on this article I emailed my MP stating that this association was open to abuse and potentially giving DCAs the powers of destraint was a very dangerous step.

Credit Today online

MP response from HANSARD

Mr Laurence Robertson: To ask the Chancellor of the Exchequer what due diligence process his Department followed in respect of the companies it recently appointed as debt collection agents; and if he will make a statement. [59644]

David Gurke from the exchequer responded with - HMRC undertook a formal tender process in compliance with the public contract regulations. Tender responses were examined on a range of criteria by a team of evaluators and site visits were also made to the appointed debt collection agencies as part of the process

So basically it went the lowest bidder. My MP is watching the situation, however it wouldn't hurt others writing to their MP complaining about this step.

[The Debt Star]

Re: HMRC and Deb Collection agencies

That is "due dilligence" nowadays? The lowest bidder. What a travesty.

[Caspar]

Re: HMRC and Deb Collection agencies

What were the "range of criteria" used I wonder? Would that withstand a FOI request?

[Amethyst]

Re: HMRC and Deb Collection agencies

Don't know unless you try.

[TUTTSI]

Re: HMRC and Deb Collection agencies

These DCA's are already collecting debts on behalf of the HMRC. I think they are piloting the idea freeing up staff - making some more staff redundant no doubt.

[frisp]

Re: HMRC and Deb Collection agencies

I've asked LAurence the question regarding criteria and also would I be able to get the answer thro' FoI. If I don't hear back I'll send in an FoI and report back.

I've also asked LAurence to confirm with the Exchequer that DCAs will only be able to use their normal processes for collection and not have the power of destraint.

[Pinky69]

Re: HMRC and Deb Collection agencies

I take the same view of DCAs collecting for HMRC as I do them collecting for any other creditor - I just have nothing to do with the DCA and will only deal directly with the creditor. If we all did the same DCAs would be out of business tomorrow.

[Caspar]

Re: HMRC and Deb Collection agencies

I take the same view of DCAs collecting for HMRC as I do them collecting for any other creditor - I just have nothing to do with the DCA and will only deal directly with the creditor. If we all did the same DCAs would be out of business tomorrow.

I doubt it, but a nice thought. If we all did the same I think the OC's would soon start supporting the DCA's more than they do currently and start taking court action with the DCA in order that we couldn't avoid them.

[frisp]

Re: HMRC and Deb Collection agencies

I doubt it, but a nice thought. If we all did the same I think the OC's would soon start supporting the DCA's more than they do currently and start taking court action with the DCA in order that we couldn't avoid them.

destraint http://en.wikipedia.org/wiki/Distraint - it is a power like no other that allows the taxman to enter your property, without recourse to the courts, with the intention of valuing your property for the purposes of recovery of a registered debt .

If a DCA had that power then by the time you got into court to resolve the issue they'd have seized the goods and sold them.

Twice HMRC has threatened me with this in my ongoing saga regarding their inefficiency leading to me owing them money. Twice I've managed to get LAurence to get them to call off their dogs, hoiwever if you are not on the ball or aware of their powers it may be too late to do anything about it.

Hence my monitoring of this situation and reporting of it ot my MP.

I suggest you all ping an email at your MP using the link in the first post with the hansard entry and finally the definition of destraint expressing your concern and alarm at this blatent abbrogation of responsibility.

[frisp]

Re: HMRC and Deb Collection agencies

LAurence asked my secondary question in the house

Mr Laurence Robertson: To ask the Chancellor of the Exchequer pursuant to the answer of 14 June 2011, Official Report, column 703W, on Revenue and Customs: debt collection, whether he plans to transfer HM Revenue and Customs' powers of distraint to its appointed debt collection agencies; and if he will make a statement. [63366]
Mr Gauke: HMRC do not currently refer cases to debt collection agencies for distraint action. This work is undertaken directly by HMRC
There are no current plans to change this approach but, as with many aspects of its work, this is something that HMRC is keeping under active review.

Key wording here currently and under review so if the DCAs start to threaten 'distraint' which some of them surely will we can at least advise them to think again and report them.