Can an EA charge for setting up a payment agreement?

[Sweetlaw]

I've read today that if a debtor contacts a bailiff at the Compliance Stage to set up a payment agreement, the EA will visit the debtor's home to set up the agreement and get a Controlled Goods Agreement thus costing the debtor another £235.

 

If this is the case, no matter what the debtor does they're going to be charged £310, not just the £75 Compliance Stage fee. Is this right?

[Bailiff Advice]

I've read today that if a debtor contacts a bailiff at the Compliance Stage to set up a payment agreement, the EA will visit the debtor's home to set up the agreement and get a Controlled Goods Agreement thus costing the debtor another £235.

 

If this is the case, no matter what the debtor does they're going to be charged £310, not just the £75 Compliance Stage fee. Is this right?

 

An excellent question !!

 

The fee scale is split into three distinct stages:

 

Compliance Stage

 

Enforcement Stage

 

Sale Stage

 

If a payment proposal is to be made during the Compliance Stage (when the fees are at £75) then the bailiff company cannot and must not make it a condition of accepting a payment arrangement that a visit must be made to the debtors' property and £235 paid. If I receive evidence that this is happening I would not hesitate for a second to bring this to the attention of the Ministry of Justice.

 

It needs to be made clear that the terms for accepting payment arrangements are determined by the conditions outlined in the local authorities contract with the enforcement company. Some contracts that I have seen stipulate that a maximum repayment term of 6 months is permitted and one that I saw yesterday had a far lesser period of just 3 months (which I do not consider fair at all).