ACSO recently submitted a response to the Ministry of Justice Taking Control of Goods Regulations Consultation 2023. This concerns changing regulations surrounding bailiffs and the ability to take control of goods as part of the enforcement of judgments.
While enforcement regulations may not make many headlines, being able actually to enforce any judgments is critical to a well-functioning civil justice system and the consumers who depend on it. Any regulatory change needs to reflect increasing efficacy in the recovery of debts for a creditor while also not unduly burdening the debtor.
ACSO broadly supports the proposal to extend the notice period required to be given to those facing enforcement action from 7 to 28 days. However, this would need to be in respect of individuals only and be used as a means for them to seek advice or clear outstanding debts before being burdened with the additional costs associated with enforcement action.
We also welcome more precise guidance on whether enforcement agents can agree repayment plans and additional explanation on the actions an agent can take. Consumer confidence in enforcement agents, or bailiffs, is vital both for those enforcing a debt and those owing it. A set of ‘minimum standards’ should be written to ensure there is clarity for all involved.
We suggest that when serving notice of enforcement action, agents should be required to serve an ‘advice booklet’ or ‘information sheet’, signposting a debtor to resources they can use for support such as the breathing space regulations. This would increase confidence in civil justice and promote early settlement, saving money for creditors and debtors alike.
The final two proposals were both sensible in the current climate, prohibiting profit sharing at a debtor’s expense and allowing lower-value outstanding judgments to have access to the additional speed and efficacy offered by High Court enforcement. Any thresholds should be reviewed periodically to ensure they reflect the value of claims at any given movement; three-year intervals of the review on fees and thresholds should prevent the regulations from become outdated while also allowing sufficient remuneration to ensure the market remains competitive and service levels high.
We will continue to stay abreast of any changes in the regulations and keep ACSO members informed.