Glossary: Taking Control of Goods Regulations 2013

The following Glossary will hopefully assist in understanding the new terminology under the Taking Control of Goods Regulations 2013

Amount due:

The ‘amount due’ is  calculated at being the amount of the debt and the bailiff fees up to the time of payment.

Compliance Fee:

£75.

Compliance Stage:

This comprises all activities from receipt of the warrant/liability order including setting up of an account, sending of a Notice of Enforcement, all telephone and postal enquiries, receiving payments, setting up and monitoring payment arrangements etc.

Controlled Goods Agreement:

Previously known as a Walking Possession Agreement and is a signed agreement allowing a debtor to retain the use of the goods whilst also acknowledging that the enforcement agent has ‘taken control’ of the goods and that the goods cannot be removed or disposed of before the debt is paid in full.

Creditor:

The person or ‘body’ who is owed the money. In most cases, this will either be the local authority or, in the case of a court fine…Her Majesty’s Courts & Tribunal Service (HMCTS).

Debtor:

Means the person liable to pay the debt.

Date and Times of enforcement:

Bailiffs/Enforcement Agents are permitted to enforce a warrant/liability order seven days a week, except for Bank Holidays and Christmas Day. Visits can take place between the hours of 6am and 9pm.

Disbursements:

This refers to ‘additional fees’ that can be charged by the bailiff. For instance; if goods have actually been removed (taken into control) allowable disbursements include cost of hiring a locksmith (most commonly in relation to court fines) and storage charges. If goods have been sold, allowable disbursements include auctioneer’s commission (not exceeding 15% of the sum realised), auctioneers ‘out of pocket’ expenses and ‘reasonable’ disbursements incurred in respect of advertising the sale. Disbursements may only be charged to the debtor in cases where they have been ‘reasonably and actually incurred’.

Distress being levied:

Under the new regulations now referred to as ‘Control being taken of’.

Enforcement Agent:

The new term for a Certificated Bailiff.

Enforcement Fee:

£235.

Enforcement Stage:

This fee covers all activities from the first attendance at the debtor’s property to completion of a Controlled Goods Agreement. Only one Enforcement Fee can be charged irrespective of the number of debts being enforced or the number of visits made to the premises.

National Standards

Stands for the Taking Control of Goods 2014: National Standards.

Notice of Enforcement (NoE):

The statutory notice sent by the enforcement company to advise that they have been instructed to enforce the debt.The Notice of Enforcement must state the precise date by which payment must be made or a payment proposal agreed. This time period should be no less than ‘7 clear days’ from the date of the letter.  A Compliance Fee of £75 will be added to the debt at this stage.

Offence:

Sections 68.1 and 68.2 of Schedule 12 of the Tribunal Courts & Enforcement Act introduces a new offence of ‘intentionally obstructing a person lawfully acting as an enforcement agent’ (68.1) or ‘intentionally interfering with controlled goods without lawful excuse’ (68.2). This would commonly refer to cases where a wheel clamp was removed etc. If convicted, the debtor could face a term of imprisonment for a term not exceeding 51 weeks, or a level 4 fine.

Percentage Fee:

On debts over £1,500 a percentage fee of 7.5% is applied to the Enforcement Fee (of £235) and Sale Stage Fee (of £110). For example; if the debt is £1, 850 the ‘percentage fee’ is applied to £350 and would be £26.25.

Premises:

Includes any place and in particular includes…a vehicle.

Proceeds:

Defined as representing either the proceeds of sale of goods or money paid by the debtor to either the enforcement company/magistrates court or local authority.

Pro-rata:

If a payment is made to the enforcement company or direct to the Magistrate Court or local authority the regulations provide that the ‘Compliance Fee” of £75 is first deducted and the balance of the payment is split on a ‘pro rata’ basis between the creditor towards reducing their debt, and the bailiff company towards reducing their fees.

Sale Stage Fee:

£110.

Sale/Disposal Stage:

All activities relating to enforcement from attendance at the property for the purpose of transporting goods to the place of sale, until the completion of the sale.

Schedule 12:

Refers to Schedule 12 of the Tribunal, Courts & Enforcement Act 2007 which outlines the ‘procedure’ that must be followed by a bailiff/enforcement agent when enforcing a debt.

Sum to be recovered:

The amount of the debt which remains unpaid together with the bailiff fees due up to the time of payment.

TCE 2007

Means the Tribunal, Courts & Enforcement Act 2007

‘TCoG’ Regulations:

Means the Taking Control of Goods Regulations 2013.

Walking Possession:

Under the new regulations renamed a Controlled Goods Agreement.

Warning of Immobilisation:

This statutory notice will be provided if the Enforcement agent has fitted a clamp to the vehicle. This notice only needs to be signed by the Enforcement Agent.

Warrant of Distress:

Renamed a Warrant of Control under the Taking Control of Goods Regulations 2013.