Debt

Debt remains a major issue for CAB clients. CAS is a member of the Scottish Parliament and Westminster cross party group Tackling Debt and we also work in partnership with Debt on our Doorstep.

Drowning in Debt Report: A major success for the CAB Service has been the publication and reception of our most recent research report Drowning in Debt. Drowning in Debt was based on a detailed survey of CAB clients from representative CAB across Scotland. The report provides a unique insight into the financial options, difficulties, situations and choices faced by Scottish CAB clients. Key findings include clients suffering increasingly ruthless behaviour from creditors, a rise of 50% of average debt levels since 2003, to £20,193 in 2008 and finding that debt has had a negative impact on health for 9 out 10 clients.

The report calls for the Government to curb unreasonable creditor behaviour, for appropriate resourcing of advice services, to increase debt solutions for those on low incomes and improve access to affordable credit. Parliamentary Motions were lodged by John Wilson MSP in The Scottish Parliament, and by Mark Lazarowicz MP in Westminster, gaining 32 signatories in Holyrood and 27 in Westminster. The outcome was a debate held in Holyrood.

Following publication of Drowning in Debt and the accompanying briefing sheet. CAS hasproduced seven briefing sheets which explore the results in more detail.  These focus on creditor behaviour, low income clients , sick and disabled clients, young clients, older clients, coping with debt and lone parent clients.

Draft Proposal for A Bill on Enforcement of Local Tax Arrears (Scotland) : CAS is currently working with John Wilson MSP on the proposed Members Bill which aims to:-

• Reduce the time that a local authority has to establish that a debt is due from twenty years to five years – bringing them into line with ordinary creditors – and reduce the collection period thereafter, from twenty years to five years
• Ending local authorities’ use of summary warrants for the collection of local taxes.  Instead, local authorities will have to apply to the court for a decree to enforce such debts, allowing a debtor the right to appear and challenge the claim

You can read the consultation document on the proposal for the Enforcement of Local Tax Areears (Scotland) here.

CAS has published a briefing sheet which outlines our evidence on the problems that the twenty year collection period has for our clients.  These are:-

• Local authorities claiming debts which have been paid by the client
• Clients being unable to prove payment due to the age of the debt
• Clients who were in receipt of benefits at the time, but are unable to prove this due to the age of the debt and a corresponding lack of DWP records
• Clients being faced with large bills with no apparent warning
• Clients facing unexpected severe recovery action for debts that are often years old.