DMBM800030 – Time to Pay: General guidance

Generally we want to conduct business over the telephone as much as possible, and you are expected to engage the customer in time to pay discussions during any telephone conversation or to react to requests for time to pay, at any stage in the process. In most cases this will occur at the initial telephone call stage.

Using ‘Lidbury’ debt management techniques we can establish ‘Can’t pay’ and ‘Won’t pay’ status. ‘Won’t pay’ is simply defined as the customer who can, but will not, make payment. Where the customer clearly shows that they are a ‘can’t pay’ as opposed to ‘won’t pay’ case, the aim is to get them back on track in a short a time as possible by negotiating a payment arrangement and help them to remain there.

Using the telephone is the preferred contact method as it will allow us to obtain information on the customer’s circumstances. This can be used to determine the likelihood of a time to pay arrangement succeeding and also can provide us with information about possible enforcement options. The telephone will also allow us to deal with requests more efficiently.

There may be occasions where using the telephone to discuss time to pay arrangements is not appropriate (i.e. where there is a disability). In these cases you will need to consider the individual’s requirements and tailor your approach.

The following factors should always be taken into account when considering if an arrangement is proper

• ability to pay
• type of debt involved
• amount of the debt
• future payments due
• length of time required
• payment and return compliance history

and depending on the stage reached in the debt management process

• the likelihood of enforcement action succeeding.

The list is by no means exhaustive, and consideration to a payment arrangement will need to be given to each case on its merits.

A payment arrangement can be considered at any stage of the debt management process up to the commencement of enforcement.

Enforcement in these circumstances is defined as

• distraint: distraint levied
• county court proceedings: claim issued
• summary proceedings: court summons issued.

- Once distraint has been levied time to pay should not be considered. But where time to pay is requested on the distraint call the guidance at DMBM655820 applies.

Where court action has been started the following guidance applies

Summary Proceedings – DMBM660470

County Court proceedings – DMBM665720.