Credit, Collections & Insolvency News
Research by Citizens Advice has suggested that bailiffs are breaking the rules on a massive scale and raking in huge fees, all while driving people into deeper hardship. The charity says that it is raising the alarm over bailiff behaviour, as its latest cost of living survey found one in four people (27%) have fallen into debt and are now potentially exposed to heavy-handed bailiffs in the near future.
Citizens Advice polling found, more than two million people were contacted by bailiffs during the last 18 months, with 1 in 3 (39%) who came into contact with a bailiff experiencing behaviour that broke Ministry of Justice (MoJ) rules. This includes bailiffs forcing their way into a home when not allowed, not taking vulnerabilities like disability or illnesses into account, or taking goods needed for work reasons.
The research also found 64% of people who had come into contact with a bailiff had experienced harassment or intimidation through doorstep visits, misrepresenting powers, or even threats to break into the property.
With increasing numbers of people falling behind on essential bills, the charity estimates that bailiffs added £250m in fees to people’s debts during the last 18 months, placing further pressure on household finances.
Half of people (49%) who came into contact with a bailiff said they experienced long-term financial consequences – such as debts becoming harder to manage, needing to take out more credit and not being able to pay other bills because of bailiff fees.
Almost three in four people (72%) saw their mental health impacted – many left feeling unsafe in their home, afraid to answer the door and even not wanting to leave their house.
Citizens Advice believes that with more people falling into debt, and potentially exposed to bailiff action, a voluntary, self-regulation model is no longer able to meet the scale of the issue. Instead, the charity wants the regulation of bailiff firms to be put on statutory footing.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said “Bailiffs are a law unto themselves. Rogue behaviour is making things far worse for people in really difficult situations – sometimes pushing them further into debt.”
“Rules are in place to try and ensure bailiffs act fairly to recover debt, but our advisers are hearing from people every day who are being intimidated and harassed by bailiffs breaking these rules. This can’t be allowed to continue. Bailiffs have been left to regulate themselves for far too long. We need the government to step up and ensure the industry is held accountable for its actions through a statutory regulatory body.”
Responding to research based on surveys by Citizens Advice, Russell Hamblin-Boone, chief executive of the Civil Enforcement Association, said “CIVEA is disappointed to read today’s statement from Citizens Advice and will be interested to understand how this data was gathered and interpreted. We will study the evidence and would expect that this will also be shared with the Enforcement Conduct Board. Enforcement agents are closely monitored and use body-worn video cameras, so we can respond to all complaints when they are identified.”
“Taking the facts alone there is no evidence from the case provided that the enforcement action was not conducted according to The Taking Control of Goods Regulations 2013. Anyone who does not pay their council tax and does not respond to numerous letters, calls and texts from the council and enforcement firm, should expect an enforcement visit to their home.”
“We will review the video evidence to ensure that the agent’s attitude was appropriate and that the member of the public was given all the information required to pay their debt. Given that the case study inaccurately states that an enforcement action is confirmed to have broken Ministry of Justice rules, we would need to review all the evidence to ensure that Citizens Advice has correctly interpreted its anecdotal surveys. We appreciate that enforcement action can be distressing, but it is the ultimate sanction available to councils to recover £5 billion unpaid debt that funds essential services, such as adult care, fire and police services and even pothole repairs and street lighting. ”
CIVEA has worked closely to establish independent oversight of our industry and is pleased to see that a Business Plan for the Enforcement Conduct Board has been published today.”
