When you pay the amount outstanding,[1] into court to discharge the sum adjudged, the enforcement power ceases to be exercisable,[2] and enforcement fees no longer apply because the bailiff did not use the Schedule 12 enforcement provisions.[3]
Court staff are trying to protect the commercial interests of the bailiff company, because they are in a contract with the Ministry of Justice which states the enforcement agents are not paid by the Court Service (the creditor) for debts for which a warrant is issued, but the debt is not recovered.[4][5][6]
The court staff are playing on regulations dealing with the proceeds from the sale of the debtors goods, in other words, enforcement. The law says enforcement means taking control of goods and selling them to recover a sum of money.[7]
When bailiffs sell the debtors goods, and the proceeds are less than the amount outstanding, regulations state the proceeds must be applied pro rata in payment of the sum to be recovered, and amounts recoverable in respect of fees and disbursements payable to the bailiff.[8]
This rule does not apply because there are no proceeds of enforcement, because the bailiff did not take control of the debtors goods using any of the prescribed methods,[9] before the amount outstanding is paid.
If you get a letter saying the money paid into court is pro-rata then, you need not take any further action.
You must still give the bailiff a notice that the amount outstanding is paid after paying money direct to the court after the warrant of control is issued.[10][11]
[1] Paragraph 50(3) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[2] Paragraph 6(3) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[3] Regulation 3 of the Taking Control of Goods (Fees) Regulations 2014
[4] JBW Group Ltd v Ministry of Justice [2012] EWCA Civ 8 (16 January 2012)
[5] JBW Group Ltd v Westminster City Council [2009] EWHC 2697 (QB) (03 November 2009)
[6] JBW Group Ltd v Westminster City Council [2010] EWCA Civ 413 (12 March 2010)
[7] Section 62(1) of the Tribunals, Courts and Enforcement Act 2007
[8] Regulation 13 of the Taking Control of Goods (Fees) Regulations 2014
[9] Paragraph 13(1) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[10] Paragraph 59(2) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[11] See: Giving the bailiff a Paragraph 59 Notice
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