Income management policy

Introduction

One of the ways Magna achieves its vision of Creating Great Homes Together is to ensure it maximises the collection of rent and other charges so that it can provide good quality, affordable homes and services for its current and future customers. This policy sets out Magna’s approach to the collection of rent, debt recovery and customer support in this area.

Scope of this policy

This policy applies to all current and former customers, including tenants, leaseholders, shared owners and licence holders of dwellings, garages and other facilities. It applies to all forms of accounts or charges including and not limited to those for rent, service charges, use and occupation charges, sinking funds, support services, rechargeable works, oil recharges, court and other legal costs, garages, licences for parking/mobility vehicle spaces or other facilities and services such as home help or Careline.

Policy statement

Our resources and procedures are geared towards preventing and recovering debt when customers are in occupation or in receipt of our services. We are committed to providing money support and assistance at the start of a tenancy, licence or lease; helping customers to maintain payments; and ensuring swift and appropriate action is taken if they do not. We will use all legal measures available to recover debt and repossess properties where the occupier does not comply with their occupancy agreement or legal remedies.

Current customer debts: objectives

• To maximise the collection of income lawfully due.
• To support customers in maintaining payments in line with their agreement with us.
• To ensure that customers understand the requirement for payments to be made in line with the agreement at the start of every new 
  tenancy, licence, lease and agreement to provide services.
• To ensure that customers fully understand our policy on debt in advance of entering an agreement with us and the consequences of non-payment.
• Where appropriate, to offer support to customers in order to improve their ability to prioritise payment of rent and other charges lawfully due to us. 
• To contact debtors as early as possible in order to prevent the debt escalating. 
• To seek possession only where appropriate preventative methods and reasonable steps to ensure compliance with the occupancy agreement have failed.
• That, except in exceptional circumstances, applicants and/or customers with a debt to Magna or another social landlord who is a partner in the relevant choice based lettings (CBL) scheme, will not be offered a home, transferred or allowed to mutually exchange (subject to the Law) unless their debt is cleared in full. Where there are exceptional circumstances, there will need to be a repayment agreement in place before the tenancy is signed and, depending on the level of debt, we may also ask for a lump sum payment. Examples of exceptional circumstances include but are not limited to:
  - Fleeing domestic abuse.
  - Safeguarding or serious safety and wellbeing concerns including end of life care.
  - Urgent management move approved.
  - Temporary or permanent need to move out of a Magna home for remedial/refurbishment work.
  - By way of a protocol or other agreement to which Magna is a signatory.
• 4.9 We reserve the right not to house customers with a debt, even in exceptional circumstances.

Former customer debts

We will monitor the accounts of former customers and take action to deal with accounts that are in arrears or in credit.

We will seek to recover all former customer debts where it is possible and cost effective to do so. 

We will use all means available to recover debt, including court action where appropriate.

Where we have no forwarding address for a former customer, we may, where appropriate and based on the level of the debt, make use of tracing agents. All costs incurred by using such services will be added to the former customer’s debt. 

We will deal sensitively with cases involving deceased former customers or where a debt arose as a result of the permanent hospitalisation /move to nursing/care home or similar of an existing customer. 

We will consider repayment agreements with former customers and, where these are agreed, monitor them regularly and take appropriate steps to ensure payments are maintained.

Where the costs involved are greater than the amount to be recovered and/or where all reasonable avenues of recovery have been exhausted in pursuing a debt, we will arrange for it to be written off in accordance with Magna’s Financial Regulations. However, should the former customer subsequently approach us, for example to apply for rehousing, or otherwise be traced, we may reinstate the debt. 

Except in exceptional circumstances, former customers with a debt to Magna will not be re-housed (subject to the law) unless their debt is 
cleared in full. 

We do not charge interest on arrears balances.

Former customer credits

We will seek to refund any credit owed to a former customer where it is possible and cost effective to do so.

Where we have no forwarding address for a former customer, we may use a tracing agent. Any trace costs will be debited to the account 
prior to the remaining credit being refunded.

Where we are unable to trace a former customer, or in other cases where credits are unclaimed, credits will remain on the account for 3 
years. Credits outstanding for more than 3 years will be written back as income on the next annual Financial Statements. Where such 
credits are subsequently claimed by and repaid to the former customer the amount will be debited to income on the next annual Financial Statements. 

We will use credits to clear or help clear any debts on other accounts held by the former customer. Any credit balance remaining will be 
refunded where it is possible and cost effective to do so.

We do not pay interest on credit balances.

Responsibilities

The Director of Customer Operations is the accountable person in relation to all aspects of income management at Magna and is responsible for the development and review of the Policy, ensuring that this meets all relevant legal, contractual and regulatory requirements and guidance.

The Head of Customer and Community Support is responsible for ensuring that the Income Management Policy is adhered to and for ensuring the policy is reviewed and updated in accordance with the policy review timetable.

The Operations Manager (income and lettings) and their team are responsible for the delivery of Magna’s operating procedures relating to income management, for maintaining accurate data on Magna’s housing management systems and also for reporting on income management in line with governance arrangements.

Governance, Performance Management and Review

This policy will be reviewed by the Director of Customer Operations and approved by the Executive Board in line with the timescales set 
out in Magna’s policy governance framework. 

We annually agree annually key performance indicators which will be used to monitor complaints.