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7.16.5 Recovery not cost effective
126.96.36.199 — The general principle in relation to debt recovery is that recovery action should be cost effective. When deciding whether recovery is cost effective, the following factors should be considered:
- the amount of the debt
- the age of the debt
- when last recovery action occurred
- the course of action needed to pursue recovery and the likely outcome
- administrative costs already incurred and future administrative costs
- the debtor's financial circumstances and capacity to repay.
188.8.131.52 — In certain circumstances, a debt may be partially recovered and the balance of the debt written off when the sources for recovery have been exhausted.
184.108.40.206 — Debts should not be written off where recovery action is in place, regardless of the amount of the debt or the cost effectiveness of recovery action, e.g. a debtor is making repayments or limitations have been imposed on a current pension.
220.127.116.11 — Write-off action should not be considered where successful recovery of a debt would be effected under the provisions of section 205A VEA, i.e. by issuing a payment notice.