Renewed calls for bailiff regulation as charities claim “rules are broken every minute”

The charities are calling for the government to step in and regulate the industry to prevent more people “suffering at the hands of debt collectors”.

Their figures show that a third (850,000) of the 2.2 million people contacted by a bailiff in the last two years experienced them pushing the limits of the law - such as by removing goods needed for work.

Citizens Advice found that of those who had a negative experience with a bailiff:

• Seven in 10 reported increased stress and anxiety
• Half experienced knock-on effects on their finances, including further debt due to enforcement fees

The charities suggest the findings show that government reforms introduced in 2014 to protect people from unfair practices are not working. Since then, Citizens Advice has reported a 24 percent rise in bailiff problems, and it remains one of the most common debt issues it helps people with.

The polling carried out by YouGov found:

• One in five (18 percent) witnessed unsympathetic treatment towards people with an illness/disability
• One in six (17 percent) had a break-in threatened
• One in 10 (11 percent) had goods needed for their work removed, for example tools or a vehicle
• One in 16 (six percent) had entry forced into their home.

Russell Hamblin-Boone, chief executive of the Civil Enforcement Association, which represents bailiffs, was critical of the report, which is based on the views of 277 people who have had contact with bailiffs in the past two years.

He said: “It is worrying that debt advisers consider it acceptable to exaggerate figures when they cannot get robust data. It is of great concern that Citizens Advice fails to make a distinction between laws that are broken and laws that people simply don’t like. For example, in the report it is assumed that a threat to force entry to a property or to remove goods required for work purposes is breaking the regulations. That is simply incorrect and depends on the circumstances. It is shocking that agents are being accused of acting illegally based on such flimsy evidence.

“A visit by an enforcement agent is always the last resort. In order to receive a visit you must have ignored final demands, emails, phone calls and texts. Agents are highly trained and must follow a process set out in detailed regulations to ensure that they collect unpaid council tax and court fines fairly.

“Of course, agents need to be assertive when chasing down people who refuse to pay their council tax or court fines. But if there is any genuine evidence that agents are acting illegally then we will investigate and take the necessary action. If we are to continue working together to drive up industry standards, we must avoid an emotionally-charged debate and instead focus on robust facts and strong evidence.”

Citizens Advice estimates households have a total of £19bn of arrears on bills such as council tax and utilities. Since 2011, these debt issues have overtaken the number of consumer credit issues (e.g. loans and credit cards) that people are seeking help with.

The impact of bailiff use has also been highlighted this year by MPs on the Treasury Committee, who labelled government and local authorities “worst in class” for debt collection. In September, the National Audit Office said there was evidence that aggressive enforcement action is ineffective, and can be harmful in situations where the debtor is struggling to pay.

Citizens Advice, StepChange and the other 9 organisations that make up the ‘Taking Control’ group are calling for an independent body to be introduced to enforce high standards in the bailiff industry.

Through the Ministry of Justice’s upcoming consultation on the enforcement industry, the group wants to see an independent bailiff regulator established.

Gillian Guy, chief executive of Citizens Advice, said: “Too often, bailiffs and the firms they work for, are a law unto themselves. This is inflicting widespread harm on people and their families and it has to stop.

“The 2014 reforms were well intentioned but sadly have had little effect on improving the behaviour of some bailiffs.

“Faced with the evidence we’ve put in front of them, the Ministry of Justice has no other option but to establish an independent bailiff regulator.”

Phil Andrew, StepChange Debt Charity chief executive, added: “The fact is that all the main debt advice charities are continuing to see too many cases where bailiffs are breaking the rules. This is completely unacceptable, especially as the people on the receiving end are often distressed, vulnerable and unempowered.

“Across the debt advice sector, we are united in the view that it’s now time for regulation to be more robust, and for the rules to be properly enforced. Even some bailiff firms seem to be realising that the days of informal regulation need to end.”