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A change in consequences for non-payment of the TV licence fee could affect which creditor a customer pays first, according to a new report.
Senior Journalist covering the Credit Strategy, TRI News and Reward Strategy brands.
The Credit Services Association (CSA) has published a discussion paper exploring the issues facing ministers if public service fees and levies, such as the TV licence, migrate into the civil debt space.
The government is set to consider decriminalisation of the BBC TV licence fee as part of its ‘roadmap for reform’ of the broadcaster.
The discussion paper highlights technical considerations that the CSA believes should be factored in, including a change in priorities for the consumer.
Other impacts could include higher evasion rates which could increase costs for those who do pay their fees, as well as how the ability to recover a civil debt depends on proof that the debt exists in the first place.
The CSA explained that incidences of late payment will almost certainly increase, revenues will fall, and the cost of collections is likely to rise.
The paper, Looking After Auntie, explains that by making the non-payment of a TV Licence a civil matter, and not a criminal one, the enforcement process will be different, and the cost to the BBC may increase. It also invites consideration of a wider array of public sector levies currently subject to a criminal sanction, such as fishing licences or road traffic fines and fees.
Crucially, the report highlights how future ‘civil’ approaches should include plans to invest in alternative customer relations, effective early engagement and good communication.
CSA chief executive Chris Leslie said: “Effective and fair collection strategies, drawn from existing recovery specialisms and anchored in good practice, will be critical in ensuring that user-funding public services continue to be adequately funded. This is a policy debate to which the wider collections sector will contribute in the months ahead.”
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