Who has benefited from the April Bailiff Reforms and have we seen aggressive bailiffs disappear for good?

Steve Caven, Director General, CIVEA Peter Tutton, Head of Policy, StepChange Debt Charity

Presenters:

Sue Lindsay, Head of Customer Relations, Wessex Water Facilitator:

Steve Perring, Compliance Officer, Cabot Credit Management and representing MALG’s South East Discussion Forum

Scribe:

Context of Reforms – “Decades of inaction”

�  1990 National Consumer Council publish “Private Bailiffs – their role in domestic debt collection”.

� 1992 Lord Chancellor's Department publish A Review of the Organisation & Management of Civil Enforcement Agents: Consultation Paper. No further action taken.

� 2000 Independent review of bailiff law published. Calls for a single law around bailiff powers, independent regulation (Prof Jack Beatson)

Context of Reforms � 2001Government responds with Green Paper,

Towards Effective Enforcement. Proposes a single law for bailiff powers.

� 2003 Government White Paper Effective Enforcement suggests Security Industry Authority (SIA) as preferred independent regulator.

� 2006 Draft Tribunal, Courts and Enforcement (TCE) Bill is published. Proposes a new system of certification of bailiffs.

Context of Reforms � 2007 Government launches “Regulation of

Enforcement Agents” Consultation Paper which proposes SIA will be licensing body not regulator

� 2007 Gordon Brown succeeds as PM and announces review of all police and bailiff powers to enter domestic premises without permission. Review does not take place.

� 2011 SIA abolished � 2012 Government launches consultation on

reforming bailiff action.

Government rationale for the new regulations -Bailiffs “play an important role recovering

money and help create the conditions for a market economy and the rule of law to thrive”

-“How Government proposes to tackle aggressive and unnecessary bailiff action…bringing up to date archaic law that currently does more to hinder than help responsible bailiffs”

-“Introducing a straightforward system, with a transparent and fair costs structure”

Government rationale for the new regulations

� New rules for the bailiff industry : Ministry

of Justice Press release

�  A simple set of rules and fees detailing when a bailiff can enter a property, what goods they can take and a fee structure which will end excessive and multiple fees.

Government rationale for the new regulations � New rules for the bailiff industry : Ministry

of Justice Press release (cont.)

�  Vulnerable people will get assistance and advice and bailiffs will be trained to recognise them.

�  Landlords would be banned from using bailiffs to seize property for residential rent arrears without going to court

Government rationale for the new regulations

� Hallmark of the reforms is balance – respect for the competing rights of the creditor and debtor

� Acknowledges that it is necessary for a bailiff to be assertive and firm if they are to be effective.

� Prescribed Process – challenged if depart from it

 

New provisions - compliance � Notice of Enforcement �  Content prescribed and includes how and when

payment may be made, contact number for EA, date and time by which payment must be made

�  Benefits �  Non- “Aggressive” notification �  Identify issues prior “door stepping” �  Signposting & Identification Vulnerability

Must be issued by EA �  7 “Clear “ days allowed

New provisions – power of entry � EA power to enter relevant premises to search for

and take control of goods � Mode of entry – usual means by which entry made

Hours of Entry �  After 6.00am or before 9.00pm.

New provisions – Vulnerability � No specific definition � Guidance

� The regulations do not prevent enforcement, rather they seek to ensure that escalation does not occur unless advice has been obtained

Competency and training

•  Enhanced certification, new court process

� Mandatory training to be independently accredited, covering essential knowledge requirements

Key Q’s?

•  What public policy outcomes do we want here?

•  How does the way reforms set about this compare to approaches in other ‘close cousin’ sectors?

•  Has it / will it deliver? •  How should the review work?