Debt worries increase as councils toughen up on tax defaulters

Home owners warned not to fall behind in council tax as local authorities get tougher over debt collection

[ClickPress, Fri Feb 01 2008] Hard pressed home owners are being warned not to fall behind in their council tax as local authorities become increasingly aggressive over debt collection.

Leading debt management consultants Harvie McGregor has seen a sharp rise in the number of councils threatening people with bankruptcy as they race to recover debts in the wake of the mounting credit crisis.

Against a bleak backdrop of a stagnant housing market and lenders tightening their belts many of Scotland’s councils are ruthlessly pursing council tax evaders and houses are being repossessed.

“The councils are having a right old crack down on council tax arrears.” said David McCowan, of Harvie McGregor, one of Scotland’s leading independent debt advisory companies.

“Some people may not know that they can be sequestrated or bankrupted if they’ve got debts of more than £1,500. Councils aren’t the soft touch some people think, they are doing this to people in increasing numbers.”

Local authorities such as Glasgow City Council, which regularly collects the lowest amount of outstanding arrears in the country, last year recouped just 86 per cent but recently started getting tougher with non-payers.

Glasgow is not alone Dundee City Council and West Dunbartonshire Council have adopted similar collection policies.

“The councils have had enough of being last in the queue behind the banks and credit card companies when it comes to getting their money,” said Mr McCowan.

”In the past people often put off paying their council tax when they had other debts to pay but now the local authority finance people are getting wise and moving to get their money as fast as possible.

”At Harvie McGregor we are dealing with more and more people who are being sequestrated by local authorities.”

Increasingly people who have racked up thousands of pounds in credit are finding it difficult to remortage or consolidate their debt because lenders are getting nervous.

“Once people are in a bed debt situation it can be hard to get out.” said Mr McCowan.

“If people are in debt they should speak to a qualified debt councillor or debt advisor. They will advise them on the most appropriate steps to take.

“It helps to be aware of all the options. There are ways to write off debts if people are serious enough. You can get debts written off under Scottish Law with a Protected Trust Deed if you owe £7,500 or more of unsecured debt and are struggling to pay it off.”

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For more information please contact Peppercorn PR on 01436 670570 / news@peppercornpr.com or visit www.harviemcgregor.co.uk.

Notes to Editors:

Harvie McGregor is a Scottish financial services company established more than 10 years ago specialising in Trust Deeds, Bank Charge Recovery, Re-mortgages and Debt Management,

Harvie McGregor provides comprehensive debt help to individuals and companies and has offices in Glasgow, Edinburgh and Dundee.

Harvie McGregor is a member of Consumer credit council.

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