Former tenant arrears policy

5.1 We understand that sometimes it is not possible for the former tenant to pay the full FTA immediately. In such cases we will agree to a repayment plan. The aim is for the former tenant to pay the arrears as quickly as they can, but the officer should ensure any repayment plan is affordable for the former tenant.

5.2 When agreeing the repayment plan with the former tenant, the officer will consider the former tenant’s financial circumstances and what they can afford to pay. An income and expenditure sheet (budget assessment) will be completed with the former tenant for all repayment arrangements.

5.3 If a tenant with rent arrears is transferred to another council property on management grounds, for example, serious anti-social behaviour or domestic violence, terms to clear the former tenant debt should be agreed and confirmed before the move takes place and included in the new property tenancy agreement.

Missed payments

5.4 Where a repayment plan is in place but a payment is missed, we will contact the former tenant within seven days to ask them to immediately make the missed payment. If they are unable to do so then any repayment plan and/or discount may be removed and collection may immediately begin for the full amount.

Discounts

5.5 The officer may offer a discount of up to 25% to help the former tenant clear their debt quickly and as one lump sum. A discount is only offered for debts over £200 and once a budget assessment has been completed.

5.6 The amount of discount and the number of instalments offered must be authorised by an officer’s line manager.

5.7 In exceptional circumstances, discounts of more than 25% may be offered where the decision has been authorised by the Head of Housing Operations.

5.8 Total discounted debt is to be cleared within three months of the confirmed written agreed discount.

5.9 The total amount of discounted debt which remains outstanding after the agreed debt amount has been cleared will be written off following the write-off approval process in section 6.