Labour leader attacks ‘money-making scam’

Date published: 14 September 2009

Bailiffs charging up to £3,300 a week for van hire to recover council debts is a money-making scam, according to Oldham Council’s Labour group leader, Councillor Jim McMahon.

Now the Labour leader is backing a new in-house debt-collection service, tackling people refusing to pay parking fines issued in Oldham.

Private bailiffs will be replaced by staff from Unity, Oldham Council’s service partner

The aim is to ensure better value for money, higher standards of ethical behaviour, and respect for residents.

Councillor McMahon is also calling for guidelines to allow people time to get debt advice to be included in the rules.

And he will tell Oldham Council on Wednesday the pilot scheme should be reviewed after 12 months.

The majority of parking penalties in Oldham are paid within 14 days at discount rates of either £50 or £70.

If drivers don’t pay, eventually the charge rises to £95 and is registered as a debt.

Between 2001 and 2007, 1,313 Oldham debts were recovered by bailiffs after warrants were issued in the county court.

Councillor McMahon will support the idea of the Unity pilot scheme on Wednesday and said: “It cannot be right that companies can charge £110 a visit for van hire when they undertake five to six visits a day, that’s £3,300 a week to hire a van. That is happening now and it’s nothing more than a money-making scam.

“Let’s get the ground rules agreed and only charge the direct costs and not just ask for the maximum fees.

“We should also give people time to get independent debt advice.”

His notice of motion will tell the council that the in-house debt-collection service will have direct accountability to the council, so high ethical standards should be maintained, and fairness promoted, while still ensuring debts are collected.

A spokesman for Oldham Council said the new scheme is a pilot still in the early stages, but the council already has internal bailiffs for recovering council tax and business rate debts.