Tribunals, Court and Enforcement Bill

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Published: 23 February 2007

Tribunals, Court and Enforcement Bill

The government has claimed that vulnerable people who have fallen into debt will be better protected from unscrupulous bailiffs thanks to its proposed reforms.

The Tribunals, Courts and Enforcement Bill is intended to create a national framework to regulate all enforcement agents, including bailiffs, who are not Crown employees.

In future, they will all:

· have compulsory criminal record checks

· be subject to the same complaints system and

· have to hold a certificate issued by a county court judge

In the longer term, the Government is looking at regulation by an outside body, with the preferred option of using the Security Industry Authority.

Under the Bill, enforcement agents who break the law could face a fine of up to £5,000 or damages, as well as suspension or cancellation of their certificate to prevent them continuing to operate.

The Bill had its third reading in the House of Lords this week and has now begun its passage through the House of Commons.

The Bill also introduces:

· a consolidated code of enforcement agent law, which will be easier for debtors & agents alike to understand and

· a simplified fee structure that will help to stamp out abuse in this area

There were approximately 339,000 county court warrants issued for unpaid debt in 2005. Any debtor or third party can lodge a written complaint to the county court that granted the enforcement agent his/her certificate.

A judge determines whether the complaint has merit and if the complaint is upheld, the enforcement agent will be dealt with appropriately.

Constitutional Affairs Minister Baroness Catherine Ashton said:

"Tens of thousands of people get into debt each year.

Some find themselves in difficulty because their economic situation changes and others mismanage their money.

Not only do they suffer financial and other hardship, but they can often be at the mercy of unscrupulous bailiffs who misunderstand or misrepresent their powers.

Bailiffs will have to undergo rigorous training to get a certificate, including diversity awareness and handling vulnerable people. In addition, a judge will handle complaints and mete out punishment.

We also plan to protect vulnerable people by listing the goods that bailiffs can't seize, including items necessary for the debtor's basic domestic needs and livelihood."

As well as clamping down on enforcement agents, the Bill also contains a package of measures intended to improve & extend the current range of solutions available to assist vulnerable debtors.

The measures include a new personal insolvency procedure for those with very low incomes who owe relatively little but have no way to pay their creditors.

The Bill also contains a number of other important proposals including:

Tribunals and Inquiries - Creates a new, simplified legal framework for tribunals and brings tribunal judges and members together under a Senior President

Judicial Appointments - New minimum eligibility requirements mean a broader range of lawyers can apply to become a judge such as patent agents, trademark attorneys and legal executives

Enforcement by Taking Control of Goods - Brings together, in one place, the laws regarding seizure and sale of goods. Enforcement agent law is currently a mix of statute law, secondary legislation, case law, guidance and codes of practice

Enforcement of Judgments and Orders - Contains measures to help creditors better enforce civil judgements and recover outstanding debt from those who can afford to pay but won't

Debt Management and Relief - Contains a package of targeted measures that improve & extend the current range of solutions available to assist debtors with relatively low levels of income and debts.

The measures take more account of individual circumstances and strike an appropriate balance between the rights of the creditor to recover a debt and the needs of debtors to be supported in managing their often complex financial situations.

They are targeted, in particular, at the socially excluded who are disproportionately affected by debt and are generally least able to deal with a range of competing creditor demands.

Protection of Cultural Property on Temporary Loan Exhibition - Provides immunity from any form of seizure ordered in civil or criminal proceedings, and from any seizure by law enforcement authorities for cultural objects lent for temporary exhibitions to the public at approved museums and galleries within the United Kingdom.

In addition, the Government is already in the process of consulting on longer-term options for the regulation of enforcement agents in a consultation paper issued on 30 January 2007 and which closes on 25 April 2007.