CCM8610 - Closing the Examination

Default after Acceptance of the Offer

If the claimant tells you that he/she is unable to pay, you will have to find out what change in his or her circumstances has taken place. You should report his/her representations to the recovery officer, telling him/her that you have done so. If you consider that the debtor should still be able to pay in full, for example, there is clear evidence that they have deliberately disposed of capital in order to avoid their obligations, you should ask the recovery officer to proceed with enforcement giving him any background information you can.

If the claimant tells you that they require an extension of the period they require in order to make a lump sum payment i.e. they require a further 60 days to pay by lump sum instead of an original 30 days, you should refer the matter to the recovery officer.

If the claimant has genuinely had a downturn in their fortunes, e.g. they have lost their job and wish to either change from a lump sum settlement to an instalment agreement, or they wish to extend a previously agreed instalment arrangement, you must make a report to (This text has been withheld because of exemptions in the Freedom of Information Act 2000) for advice on the acceptability of the new arrangement and the wording of any fresh offer if:

• you accept the genuineness of the claimant’s inability to pay, and
• he/she is able to make a realistic proposal for an instalment arrangement (or revised instalment arrangement), which you would have been prepared to accept (or recommend for acceptance) if it had been made earlier. You should ensure that there is up to date means information on the enquiry papers before referral to (This text has been withheld because of exemptions in the Freedom of Information Act 2000) .

In such circumstances there will be additional forward interest to take into account and there may have been further payments made. Your report should, therefore, include your computation of the revised offer on a fresh form 94NTC. You should ask the recovery officer to suspend recovery action while the proposals are being considered.

If the claimant can make no proposals for settlement it is a collection problem and the decision how to proceed will be for the recovery officer to make.