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Debt Collection Agencies

Volume 455: debated on Thursday 25 January 2007

To ask the Secretary of State for Work and Pensions how many debt collection agencies the Child Support Agency has used in the last five years; how much the agency paid to such companies in each year; and if he will make a statement. (103997)

The administration of the Child Support Agency is the matter for the Chief Executive. He will write to the hon. Member with the information requested.

Letter from Stephen Geraghty, dated 25 January 2007:

In reply to your recent Parliamentary Questions about the Child Support Agency, the Secretary of State promised a substantive reply from the Chief Executive.

You asked the Secretary of State for Work and Pensions, how many debt collection agencies the Child Support Agency has used in the last five years; how much the Agency paid to such companies in each year; and if he will make a statement.

The Agency did not refer any debt to debt collection Agencies before August 2005. Since then the Agency has referred debt to three different debt collection agencies.

The Agency’s contracts with these agencies involve paying a fee for successful collection of debt, rather than paying for each referral. A total of £72,000 has been paid to these debt collection agencies for their services up to the 30th November 2006.

I hope this information is helpful.