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Private firms collect CSA debts
19/01/2006 16:48:00
Private firms could soon collect outstanding debts on behalf of the Child Support Agency (CSA).
As part of a massive reform of the CSA, the Department of Work and Pensions (DWP) has decided "in principle" to sell outstanding debts worth £3 billion to private debt collection firms.
It is thought that the private firms will be more efficient at collecting the debts, with payment evasion by absent parents a chronic problem for the CSA.
However, critics have voiced concerns that the firms may adopt "strong arm" tactics, questioning whether this would be appropriate for a government agency.
Scepticism has also been sounded over the suggestion that private firms will be allowed to keep a proportion of what they collect. Critics warn that families may lose out as private firms increase their profits.
Last year the CSA's running costs exceeded the money it collected, leading some to describe the entire organisation as a "basket case".
The DWP is finalising reforms aimed at saving the CSA. Other shake-ups could see the responsibility for child support payment collection handed over to Revenue and Customs.
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