Page 6395 - Week 19 - Tuesday, 17 December 1991

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accounts of those tenants paying by, deduction. When this barrier was breached, not all payments could be processed.

The delay while modifications were carried out resulted in deduction accounts going into arrears and the computer moving directly to the third stage in the arrears process. The third stage is a letter to tenants in arrears mentioning the possibility of eviction if rent is not paid promptly.

In answer to the specific questions asked I wish to state the following:

1. Can the system handle payments bpi deductions?

It is designed to do so. The reason there was a problem was an inbuilt ceiling in the Victorian system because of the smaller number of tenants paying by this method in that State. Remedial action has now been taken.

In clarification of what went wrong I should explain that previously there was a greater reliance on staff to initiate action on tenant arrears. Under the new system, the computer is geared to prompt staff action in the light of information it holds on the state of tenants accounts. The system is designed to generate letters to tenants appropriate to the level and length of arrears. This is done in three stages - an initial letter of arrears, a follow up letter and a final letter. During this process Trust staff also make several attempts to contact tenants personally to try to negotiate an agreement to repay arrears.

When the processing of deductions failed, the accounts of some tenants were placed into the arrears cycle because the computer was unable to process all deductions. Trust staff then took action to suppress the first arrears letter which the system was designed to produce. However the system then produced the third stage letter.

Staff intercepted as many letters as possible. However many of them were still delivered. A letter of apology has been sent to any tenant who erroneously received a letter.

Tenants who have written inquiring about the arrears letter are being answered on an individual

basis.


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