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<p>HM Revenue and Customs (HMRC) began using private sector debt collection agencies
(DCAs) to augment in-house debt collection capability in 2009. HMRC recognised the
need to do more to tackle the temporary forecast rise in tax credit related debt before
the replacement of tax credits by Universal Credit. HMRC's experience working with
Debt Collection Agencies showed that they could provide cost effective temporary capacity
to do this, especially because doing this would enable HMRC's own collectors to generate
extra yield from other types of debt, and that this approach would offer substantially
better value than selling the debts.</p><p> </p>
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