Can enforcement agents charge multiple bailiff fees?

[Bailiff Advice]

Every day, without fail, I receive an enquiry about an enforcement agent charging 'multiple fees' and in fact yesterday, two enquiries were received on this forum on the same subject. Clearly there is a need to provide guidance on this subject.

 

In 2014, the Taking Control of Goods Regulations 2013 (and other supporting legislation) came into effect and introduced significant changes to previous bailiff enforcement. The situation now is that when the enforcement agent receives instructions from the creditor (commonly; the Magistrates Court (in the case of court fines) or local authority (in the case of council tax arrears) the enforcement company are under a legal obligation to send to the debtor a Notice of Enforcement.

 

This notice must identity the debt and invite the debtor to submit a payment proposal by the date set out in the Notice. This period of time is referred to in the regulations as being the 'Compliance Stage'.

 

It is important to note that when the Notice of Enforcement is sent, a statutory 'Compliance fee' of £75 will be added to the debt.

 

If full payment is not made, or a payment arrangement set up by the date given, the account will then be referred to an enforcement agent. He is then able to make a personal visit to the debtors property for the purpose of 'taking control of goods'.

 

Once the account reaches this stage....it is much more difficulty to get a payment arrangement set up. It is only at this stage of enforcement that the important subject of 'multiple fees' comes into effect.

 

Prior to the Taking Control of Goods Regulations 2013 being introduced, it was sadly the case that the previous regulations allowed bailiffs to charge 'multiple' fees when enforcing more than one debt at the same time.This led to dreadful instances of injustice and in particular, with debtors who had one or more penalty charge notices. To avoid these situations being repeated, the government imposed a condition that 'multiple fees' cannot be applied....in certain circumstances.

 

The actual legislation can be found under Item 11 of the Taking Control of Goods (Fees) Regulations 2014

 

http://www.legislation.gov.uk/uksi/2014/1/regulation/11/made?view=plain

 

However, particular attention needs to be given to Item 11(b) as this is where most of the confusion about 'multiple charges' arises.

[Bailiff Advice]

Item 11 of the Taking Control of Goods (Fees) Regulations 2014 apply in cases where the enforcement agent receives more than one warrant (or Liability Order) in relation to the same debtor.

 

Most importantly, Item 11(b) states the following:

 

Those enforcement powers

can reasonably be exercised at the same time.

 

 

What does this mean in practice?

 

Once the compliance stage ends...and before the account is referred to an enforcement agent....the enforcement company should undertake a search of their records to ascertain whether they have recently received any other warrants/liability orders for the same debtor. If so, they should all be enforced

at the same time.

 

 

What happens if the council passed a Liability Order to the enforcement company in January and another debt this month?

 

Presumably, the January debt has already been subject to an enforcement fee of £235 and as there is now new debt, a further enforcement fee of £235 can legally be applied.

 

 

The enforcement agent is enforcing two debts at the same time but is trying to charge two 'Compliance fees' of £75 each.

 

A statutory 'Compliance fee' of £75 is legally charged to each debt. However, only one 'enforcement fee' can be charged.

[Bailiff Advice]

The '10 minute edit facility' came into effect so I could add the following to the above post.

 

 

The enforcement agent visited today to enforce 2 penalty charge notices. He charged me two compliance fees and two enforcement fees?

 

The enforcement agent has acted correctly in enforcing both debts at the same time. He is legally able to charge a Compliance fee (of £75) for each debt.

 

However, he cannot...and must not...charge multiple enforcement fees. He can only charge one enforcement fee of £235.

[brassnecked]

T

However, he cannot...and must not...charge multiple enforcement fees. He can only charge one enforcement fee of £235.[/indent][/indent]

But Equita appear to be doing just that.

[Peterbard]

What happens if the enforcement stages are at different times, but both actions are combined when goods are at sale stage. This is quite possible if one or both are failed arrangement.

[Peterbard]

OK my point is that the multiple stages doesn't just apply to the enforcement stage, or stage one of HCEO.

 

(2) In paragraph (1)(b), “can reasonably be exercised at the same time” means in particular—

(a)taking control of goods in relation to all such enforcement powers on the same occasion; and

(b)selling or disposing of all goods so taken into control on the same occasion,

 

It applies to any enforcement power except compliance. So for instance if a HCEO gets a CGA agreement on his first writ, and then this fails.

Subsequently, he fails to make an enforcement on the second and it moves to second stage, he then makes both second stage visits at the same time he will be enforcing two writs at the same time. Only one fee will be applicable for the second stage and both sale stages. Two for the first enforcement