It is the practice of bailiff companies to work together with scrap vehicle companies to charge storage fees when you collect your car.
Some compounds charge a daily storage fee for a single car that is more than renting a house.
It is a scam, and bailiff companies try to legitimise it by hiding behind their authority. One bailiff company even has a solicitor endorsing storage fees on headed paper.
Bailiffs may only recover disbursements that are reasonable and actually incurred,[1] including the cost of storing goods removed from a highway.[2]
Bailiffs can apply to the court for exceptional disbursements,[3] but a court dismissed an application because storing a car is not an exceptional disbursement.[4]
If the compound charges storage fees before releasing your vehicle, then it is evidence the bailiff has not been actually and reasonably disbursed, and the bailiff has not paid them. The debtor may recover the money through the small claims track,[5] or by applying for a detailed assessment.[6][7]
Vehicle compounds often demand their fees are paid in cash because they receive chargebacks,[8] or their card processing services are suspended for abuse.
If the bailiff is unable to explain how he spent the money storing your car, then you can recover it because it is not a reasonable and actual disbursement.
Some compound operators consider themselves auctioneers. When selling on eBay,[9][10] they are a vendor and eBay is the auctioneer. This means a compound operator may not recover the auctioneers statutory 15% of the sum realised,[11] or out-of-pocket expenses.[12]
When bailiffs sell a debtors car on eBay, he may only recover 7.5% of the sum realised from the sale of goods.[13]
Before suing to recover the money, ask the bailiff company to give evidence of the flow of money proving the bailiff was reasonably and actually disbursed.[14]
When bringing a claim to recover disbursements not paid by the bailiff, you may apply for costs,[15] or if you are representing yourself, your litigant in person expenses.[16][17]
All claims for non-disbursements are against the creditor, or council, and the enforcement agent.[18]
If the debtor was charged VAT on storage fees, these may also be recovered.[19]
Technical note: If the bailiff takes the amount outstanding[20] from the debtor, the property in his vehicle ceases to be bound.[21] When the debtor visits the compound, the staff demand their fees and will not release the car until they have taken the money. This is illegal because the property in the goods has ceased to be bound and therefore, not entitled to use the vehicle as a lien[22] to get a money transfer for which there is no contract between the debtor and the compound operator.
Template Letter: Give the bailiff an opportunity to show the flow of money proving the Disbursement was paid.[11]
Send the letter to the bailiff company and get a certificate of posting from the post office.
Give a copy of the letter to the bailiff company by email and make a screenshot of the sent email capturing the time you gave it.
Send a copy of the letter by text message to the bailiff to his mobile and make a screenshot of the sent text message to record the time you gave it.
Keep all screenshots for your file.
[1] Regulation 8(2) of the Taking Control of Goods (Fees) Regulations 2014
[2] Regulation 8(2)(a) of the Taking Control of Goods (Fees) Regulations 2014
[3] Regulation 10(1) of the Taking Control of Goods (Fees) Regulations 2014
[4] On application by Peter Felton Gerber, for Newlyn Plc in Mulwanyi v London Borough of Croydon and Newlyn Plc, Central London County Court, 7 Apr 2017
[5] Part 27 Civil Procedure Rules, small claims track
[6] Civil Procedure Rule 84.16
[7] See: Apply for a detailed assessment hearing
[8] See: Bailiffs and Chargebacks
[9] See: A1 Environmental Ltd - Companies House
[10] See: Louis Sanders, A1 Environmental Ltd eBay account. (ebay account suspended)
[11] Regulation 9(2)(a) of the Taking Control of Goods (Fees) Regulations 2014
[12] Regulation 9(2)(b) of the Taking Control of Goods (Fees) Regulations 2014
[13] Regulation 9(4) of the Taking Control of Goods (Fees) Regulations 2014
[14] Rule 6, Practice Direction – Pre-Action Conduct And Protocols
[15] Civil Procedure Rule 44.2
[16] Civil Procedure Rule 46.5
[17] Practice Direction 46.5 Rule 3.1
[20] Paragraph 66(6) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[19] VAT on bailiff charges not recoverable from debtors: Master Fontaine in Davenport vs Edgoose, 6 July 2020 EWHC
[20] Paragraph 50(3) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[21] Paragraph 6(3)(a) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[22] Definition of Lien
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