Debt & Bankruptcy Issues in the UK

New laws in England and Wales may put debtors into the hands of unscrupulous bailiffs according to a warning issued by the Citizens Advice consumer charity. Under the new law, bailiffs could be granted legal permission to break into the homes of debtors in those areas. Citizens Advice feels the law will increase the number of cases of system abuse, but the government states that it plans to help protect vulnerable people by simplifying the laws that govern bailiffs.
The proposed changes are part of the Tribunals, Courts and Enforcement bill, which is in the midst of its second reading in the House of Commons. Presently only enforcement officers who deal with magistrates' court fines have the legal right to forcibly enter people's homes. The concern of Citizens Advice is that this bill will give bailiffs the right to do so in cases where a debtor owes on a credit card. The charity wants the provisions of the bill to indicate that it should be a last resort and one that will not be used on a vulnerable person. It also wants the bill to reflect that the power should only be used on those persons whose non-payment is the result of wilful neglect and not those who are financially unable to pay.

Because intimidation, harassment, and the charging of exorbitant fees are already abundant problems, Citizens Advice is also pushing for the legislation to include provisions for independent regulation of bailiffs. The charity analyzed 500 cases, which showed that two thirds of bailiffs were guilty of harassing and intimidating debtors, while forty per cent misrepresented their powers regarding entry into the debtor's home. In addition, nearly half of the bailiffs levied fees that were unfair and a quarter threatened to put the debtor into jail if he or she didn't pay.

Research shows that a minority of bailiffs have a long history of abusing their powers against vulnerable people, are often abusive and aggressive, and make threats of violence or prison terms in order to pressure people into paying large sums of money that they cannot afford.

"Instead it gives bailiffs greater powers without any proper regulation - a recipe for abuse on an unprecedented scale."

But the government says the bill will simplify the laws governing bailiffs, and will help protect vulnerable people by creating a framework for regulation.
It says it will be able to introduce a certification scheme for enforcement agents, which will cover issues like proper training, criminal records checks and references.