Council says it could still act over £7.9m of bad debts written off

People who have contributed to the high level of bad debts written off in Fife over the past year have been warned that action could yet be taken to recoup the cash.

As highlighted in The Courier last week, around £7.9 million in debt was written off in 2014/15, up from £5.8m the previous year, but councillors on the region’s executive committee have been reassured that these debts will still be pursued if circumstances change for those involved.

Eileen Rowand, head of revenue and shared services, said economic difficulties are continuing to impact on the level of debt owed to the council and the council’s ability to recover that debt.

But she added: “Debt is pursued proactively by the council and a variety of actions will have been exhausted before write-off is considered.

“Collection staff work closely with colleagues in legal services and external debt collection agencies to ensure that all options are pursued.

“Write-off will only be considered where there is no realistic hope of recovery or it is not economic to pursue further.

“If a debtor’s circumstances change in the future, we will pursue payment, therefore the debt write-off does not necessarily mean that the recovery process has ended.”

A report to councillors suggested that the value of bad debts written off has increased due to the fact that all remaining Community Charge has now been written off, a large increase in the write-off of non-domestic rates due to increases in business failures, and the council’s proactive approach to collect council tax which has identified more accounts deemed uncollectable.