Recovery of debt
15.1
The Care Act 2014 consolidates the Council’s powers to recover money owed for arranging care and support for an adult.
Section 69 of this Act provides equal protection to both the Local Authority and the person.
Section 70 of the Act also provides the Local Authority with the power to recover charges from a third party where a person has transferred assets to them in order to avoid paying charges for care and support.
Where North Tyneside Council is not able to recover the debt, it will pursue the recovery by making a claim to the County Court for a Judgment Order.
These powers can be exercised where an adult refuses to pay the amount they have been assessed as being able to pay, or have been asked to pay (where the cost of care and support is less than their assessed contribution).
15.2
The powers granted to the Council for the recovery of debt also extends to the adult or their representative, where they have misrepresented or have failed to disclose (whether fraudulently or otherwise), information relevant to the financial assessment of what they can afford to pay.
15.3
Where there is a refusal to pay for care and support costs by the adult or their representative, the Council will act reasonably and 18 endeavour to resolve the issue in one of the following ways, before making application to the County Court.
These include:
- Contacting the adult or their representative in writing, to establish why the contribution to care and support costs has not been met and for payment arrangements to be made. These repayments must be affordable and relevant to the outstanding debt.
- Where mental capacity is not established North Tyneside Council may support the representative to gain Deputyship as appropriate;
- Where mental capacity is not established and there is no appropriate representative to gain Deputyship North Tyneside Council will consider applying to be a Deputy; or requesting a Panel Deputy be appointed and
- Use of independent mediation through an independent third party such as a voluntary organisation, advocate or solicitor where appropriate
15.4
Documentary evidence must be gathered in all cases to support any application to the County Court.
This includes documentary evidence that
- the adult is eligible for, has been offered, and refused, a Deferred Payment Agreement (where applicable)
- All invoices raised
- Recorded dates of contact made with the adult or their representative and the outcome of these meetings
- Any other relevant information
15.5
In all cases the desired outcome is to prevent debt escalating and for the adult to enter into affordable repayments of the debt as well as being able to pay on-going costs as they arise.
15.6
Social workers will be advised of the debt and will become involved as appropriate
15.7
The Council will give regard to the level of debt and the cost of recovery and will not proceed with recovery action where the cost of recovery would be disproportionate.
15.8
All debt that arises from 1st April 2015 must be recovered within 6 years from when the sum became due to the council.