Ours does and today there were piles of the bagged leaves at intervals all up the pavement. I was on way to 'lotment so grabbed a few bags to start a leafmould bin. The guys collecting the bags drew up alongside (thought I was going to be admonished ) but no they asked if I wanted more then came and deposited loads of the bags at our allotments for me.
I was amazed when they said they just take them to the normal tip with all the other waste and don't compost them or anything .
So I whizzed off an email to council. What a waste - all those plastic bags of leaves in landfill!!