This post is not intended to be critical of any of the superb helpers on this site who spend their valuable time providing advice to debtors.
Over the past few weeks I have noticed that many vulnerable debtors are advised to make complaints to their MP's, local Councillor, HMCTS Area Enforcement Managers (for court fines) or Local Government Ombudsman. With respect, in most cases, neither of these options is the right one.
Fortunately, one of the 'good points' of the new Taking Control of Goods Regulations 2013 is the PROTECTION that is now given to "vulnerable" debtors (more on this in a moment).
As most people on here will now know, the fee scale is much clearer in that debtors will be charged a 'Compliance Fee' of £75 and this is charged to the account when the local authority transfer the case to the enforcement agent. If the debtor has more than one Liability Order/court fine/or parking charge notice a fee of £75 is payable for EACH debt.
The debtor is given "7 clear days" in which to make payment OR to contact the enforcement company to agree a payment proposal (a STICKY that I have written explains more on how the number of days is to be calculated). The 'period' of repayment depends entirely upon the agreement that the local authority has with their enforcement agent but 3-6 months (max) appears to be a 'common' timeframe.
If the debtor fails to pay the debt as shown on the Notice of Enforcement or to 'engage' with the enforcement company then the case will be referred to an enforcement agent for the purpose of 'Taking Control of Goods" (previously levying upon goods). This visit will incur an "Enforcement Fee" of £235. An excellent inclusion in the new regulations is that where there is more than one Liability Order/court fine/parking charge notice etc the enforcement agent cannot charge 'multiple fees'
Vulnerable debtors:
At the time of the visit if evidence of 'vulnerability' is given to the enforcement agent then he is supposed to 'rewind' the account back to the Compliance Stage and the 'Enforcement fee' of £235 should be removed.
If the debtor was not present at the time of the visit it is vitally important that they write to the enforcement company straight away to outline their 'vulnerability' and to provide 'evidence'. If the enforcement company are satisfied that 'vulnerability' has been demonstrated then the position is that the 'Enforcement fee' of £235 is removed and the case 'rewound' to the Compliance Stage.
For the avoidance of doubt, the 'Compliance Fee' of £75 will not be removed.
Over the past few weeks I have noticed that many vulnerable debtors are advised to make complaints to their MP's, local Councillor, HMCTS Area Enforcement Managers (for court fines) or Local Government Ombudsman. With respect, in most cases, neither of these options is the right one.
Fortunately, one of the 'good points' of the new Taking Control of Goods Regulations 2013 is the PROTECTION that is now given to "vulnerable" debtors (more on this in a moment).
As most people on here will now know, the fee scale is much clearer in that debtors will be charged a 'Compliance Fee' of £75 and this is charged to the account when the local authority transfer the case to the enforcement agent. If the debtor has more than one Liability Order/court fine/or parking charge notice a fee of £75 is payable for EACH debt.
The debtor is given "7 clear days" in which to make payment OR to contact the enforcement company to agree a payment proposal (a STICKY that I have written explains more on how the number of days is to be calculated). The 'period' of repayment depends entirely upon the agreement that the local authority has with their enforcement agent but 3-6 months (max) appears to be a 'common' timeframe.
If the debtor fails to pay the debt as shown on the Notice of Enforcement or to 'engage' with the enforcement company then the case will be referred to an enforcement agent for the purpose of 'Taking Control of Goods" (previously levying upon goods). This visit will incur an "Enforcement Fee" of £235. An excellent inclusion in the new regulations is that where there is more than one Liability Order/court fine/parking charge notice etc the enforcement agent cannot charge 'multiple fees'
Vulnerable debtors:
At the time of the visit if evidence of 'vulnerability' is given to the enforcement agent then he is supposed to 'rewind' the account back to the Compliance Stage and the 'Enforcement fee' of £235 should be removed.
If the debtor was not present at the time of the visit it is vitally important that they write to the enforcement company straight away to outline their 'vulnerability' and to provide 'evidence'. If the enforcement company are satisfied that 'vulnerability' has been demonstrated then the position is that the 'Enforcement fee' of £235 is removed and the case 'rewound' to the Compliance Stage.
For the avoidance of doubt, the 'Compliance Fee' of £75 will not be removed.
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