When the amount outstanding,[1] is paid, the enforcement power ceases to be exercisable,[2] and bailiffs must not seek to enforce the recovery of fees where an enforcement power has ceased to be exercisable.[3]
The council is trying to protect the commercial interests of the bailiff company. They say giving the money to a bailiff company lets them subtract their fee from the payment and return the balance to the council.
One bailiff company got an individual to publish this advice presenting it as fact to mislead the public,[4] by giving a skewed interpretation on regulations specifying how proceeds of enforcement being less than the amount outstanding are apportioned.[5]
The rules on apportionment apply when the proceeds from the sale of the debtor’s goods, or enforcement,[6] is less than the amount outstanding.[5] It states they must apply the proceeds pro rata in payment of the sum, and any remaining amounts recoverable regarding fees and disbursements payable to the bailiff.
When a council or authority gives public money to a bailiff company, nothing in enforcement regulations revives the enforcement power after it has ceased to be exercisable.
The bailiff may not recover fees or disbursements from the debtor in relation to any stage of enforcement undertaken when the relevant enforcement power has ceased to be exercisable.[7]
[1] Paragraph 50(3) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[2] Paragraph 6(3)(a) of Schedule 12 of the Tribunals Courts and Enforcement Act 2007
[3] Paragraph 31 of the Taking Control of Goods: National Standards, April 2014
[4] Sheila Harding, Bailiff Advice Online, Application of proceeds of enforcement
[5] Regulation 13 of the Taking Control of Goods (Fees) Regulations 2014
[6] See: definition of Enforcement. Section 62(1) of the Tribunals Courts and Enforcement Act 2007
[7] Regulation 17(1) of the Taking Control of Goods (Fees) Regulations 2014
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