Debt Charities have Advised that Many Bailiffs are ‘Still Abusing Powers’

Regardless of the changes in legislation that were passed 3 years ago, some bailiffs are still abusing their powers when trying to recover debts, say debt advice charities including AdviceUK, the StepChange Debt Charity and the Children’s Society.

The change in laws were brought about with the goal of protecting debtors from unfair behaviour on the bailiff’s part, but in some cases it is clear that the legislation is falling on deaf ears.

A review of the laws is said to be on the cards over the next year; one industry body said the system had improved but could be better.

A business’ creditors generally use bailiffs to seize assets if the business fails to pay what is owed; the courts authorise them to do this. The novel laws (passed in 2014) should have provided debtors with protection against over aggressive bailiffs.

One example of the current laws is the dictation that bailiffs are unable to enter premises either at night or without identification to prove their authority. Obviously, fees that have not been officially authorised are also unenforceable.

However, the ‘Taking Control’ report was compiled by debt advice charities, which outlines that debtors are still regularly intimidated by bailiffs.

Some bailiffs may refuse to take payment offers or take account of genuine vulnerabilities, which is not good practice and, more to the point, is against the law.

The last resort?

Money Advice Trust’s Joanna Elson said:

‘We continue to see widespread problems with the behaviour of bailiffs and bailiff firms. In its three-year review, the government now has the opportunity to deliver the fundamental bailiff reform that is needed to resolve these problems.’

Chief executive of Citizens Advice, Gillian Guy, said:

‘Harsh tactics by bailiffs can cause severe distress and push people even further into debt. Local authorities have a key role to play in stamping out bad practices – by treating people in arrears fairly and ensuring bailiffs are only ever used as a last resort.’

The charities that compiled this information are crying out for a bailiff regulator that is independent from any other body, creating an avenue for people to complain about bailiffs that have over-stepped the mark. Currently, directors are advised to contact the council concerned.

The widespread use of bailiffs to recover debts is commonly used for those that have left business rates unpaid; the charities outlined that Councils in England and Wales pursued 2.1m worth of debts using the instruction of bailiffs between 2015 and 2015.

Improvements

An HM Courts and Tribunals spokeswoman said:

‘The government is clear that aggressive enforcement action is not acceptable.

Protecting the rights of the public is our top priority, which is why we’ve introduced robust rules on what goods an enforcement agent can or cannot take, how and when they can enter premises and what fees they can charge’.

Furthermore, Vernon Philips of the CIVEA (Civil Enforcement Association) has indicated that recent surveys have shown improvements in private sector agents’ dealings. He said:

‘We are keen to ensure any continuing concerns are tackled effectively. We are currently in conversation with the advice sector organisations, and we are hoping that they will be able to share specific evidence with us of where practice can be improved, so that we can work with them to do that.’

If you have been visited or even threatened by bailiff action, don’t hesitate to get in contact. We have a wide range of knowledge on the different types of bailiffs, what they can and can’t do, and how limited company directors should prepare for this. Call now on 01472 254910.