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Councils ‘treat debtors worse than payday lenders’

Debtors feel they are treated less fairly by local authorities than by retail lenders, according to a survey.

A 2018 survey by debt charity StepChange, cited in a report this week by the National Audit Office, said that 25% of those behind with their payments to local authorities felt they were treated unfairly by councils.
This compared to 19% to 24% for retail lenders, and 32% for payday lenders.

Separate research cited in the NAO report, by the Money Advice Trust, found that total bailiff referrals by local authorities in England and Wales increased by 14% between 2014/15 and 2016/17.

In July, the treasury select committee called on the government to rein in local authorities over their “overzealous” pursuit of debts.

Until recently, the FRC had little involvement in local government affairs. But with investigations into council officers becoming more frequent, where is the political accountability?

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