The Federation of Community Legal Centres  has released a new report into council debt collection practices, which it says will help inform further work to guide how local government responds to people facing severe financial hardship.

  

Cr Bill McArthur, President of the Municipal Association of Victoria (MAV), welcomed the report, saying that despite relatively few unpaid rates debts resulting in court action, it was a serious matter that warranted further investigation.

 

“There is clear room for improvement in how councils approach their debt collection. While court proceedings were only used to recover 0.25 per cent of all council rates bills in 2010-11, the impacts can be devastating for the people affected.

 

“We know that many people experiencing debt can be difficult to engage, and will often not seek professional advice or even acknowledge there is a problem.

 

Cr McArthur said that as financial hardship is usually symptomatic of broader problems, such as chronic unemployment or health issues, councils had an obligation to approach issues of debt with sensitivity.