DMBM565010 | Debt and return pursuit: contract settlements: overview

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All contract settlement recovery work is centralised in the Contract Settlement Unit (CSU) at National Debt Pursuit Unit (NDPU).

The unit will contact the debtor by phone soon after they default and attempt to secure full payment of the outstanding debt or agree a time to pay arrangement if necessary.

If they are unable to secure payment they will pass the case for enforcement action, usually to Bradford Enforcement Unit (BEU) for CCP action or to EIS (Edinburgh or Worthing) for insolvency/bankruptcy.

Which contract settlements are being centralised?

This guidance applies to the following types of contract settlements that are in IDMS:

• Class 1 Contract Settlement

• Class 1A Contract Settlement

• Class 2 Contract Settlement

• Class 3 Contract Settlement

• Class 6 Contract Settlement

• PAYE Settlement Agreement

• Tax Credit settlements

• Jointly and severally liable Settlement.

Contract settlements may be payable in a single lump sum or by a number of instalments.