Advancing the credit profession / www.cicm.com / <strong>July</strong> & <strong>August</strong> <strong>2021</strong> / PAGE 48
HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION A Freedom of Choice Modernising the High Court Enforcement system across Engl<strong>and</strong> <strong>and</strong> Wales. AUTHOR – Alan J Smith WE all know that the COVID-19 p<strong>and</strong>emic has had an unanticipated <strong>and</strong> lasting effect on finances across the UK. With the pause on enforcement activity <strong>and</strong> the Government’s new Breathing Space moratorium, debtors have rightly been given the time <strong>and</strong> space needed to seek advice <strong>and</strong> get their affairs in order. However, while extra measures have been put in place to protect debtors, what is being done for the creditor? Particularly those owed sums under £600. At present, any unregulated debt under £600 must be enforced via the County Court Bailiff system. A system which is currently overloaded with a significant backlog of cases, subjecting creditors to long, stressful delays <strong>and</strong> uncertainty. While £600 might not sound like much, for a small business, or a creditor owed multiple, smaller debts, this soon adds up <strong>and</strong> puts them at risk of becoming the debtors of tomorrow. Under the current system, creditors can commission the services of a High Court Enforcement Officer (HCEO), to transfer up unregulated debts of between £600-£5,000 from the County Court to the High Court for enforcement. This process can bypass some of the delays <strong>and</strong> allow creditors to receive the money they are owed in good time. But creditors that are owed debts under this threshold are left to deal with longer waiting times, lower success rates <strong>and</strong> no other options. The HCEOA Board strongly believes that the Ministry of Justice should give court users a greater freedom of choice to allow them to decide for themselves who they want to enforce their County Court Judgments under £600. HOW DO COURT USERS FEEL? After speaking to our members <strong>and</strong> their clients, it has been clear for some time that the current system is less than ideal for creditors <strong>and</strong> l<strong>and</strong>lords seeking to recover smaller amounts. What’s worrying is that many creditors seem to be giving up on unregulated debts under £600 as unclaimable, rather than pursuing these through the County Courts. This means that creditors would rather write off money they are owed than deal with the current court system. That can’t be right. Not only is this unfair on the creditor, but it is also putting them under undue financial pressure, leading to sleepless nights, additional borrowing <strong>and</strong>, in some cases, administration. Not to mention the reputational damage <strong>and</strong> loss of earnings from solicitors <strong>and</strong> debt recovery services who are losing clients due to lack of results when dealing with the County Courts. How do we know this? Well, the HCEOA is undertaking a survey in order to establish exactly how court users feel about the current system. While the full results are still being analysed, initial findings show that 95 percent* of court users would support a change in regulations to allow them to choose whether they would like to use a County Court Bailiff or HCEO to enforce debts under £600. In fact, 35 percent* of respondents stated that not only would they like this freedom of choice, but the that the number of claims they issue would likely increase. Once we have the full survey results we will publish our report on the HCEOA website, <strong>and</strong> will be using this feedback to make a case for change with relevant stakeholders <strong>and</strong> decision makers. WHAT MIGHT THIS CHANGE LOOK LIKE? While we know that any changes won’t happen overnight, giving court users another option will not only allow them to recover money that they are legally owed, but will give them peace of mind when collecting future debts. This reform can be delivered simply <strong>and</strong> easily by the Lord Chancellor/Ministry of Justice, <strong>and</strong> we will be campaigning to ensure creditors’ voices are heard. Changes to the current regulations would alleviate some of the pressure on the current court system, giving the County Court Bailiffs the time needed to work through the backlog of cases from outst<strong>and</strong>ing judgments, <strong>and</strong> take on new cases from creditors who do not want to transfer up lower amounts of unregulated debt. Overall, the changes would be a positive step, allowing creditors <strong>and</strong> their representatives the ability to make an informed choice about how <strong>and</strong> when their debt is recovered. *Figures taken from HCOEA’s recent survey ‘Exp<strong>and</strong>ing the Use of High Court Enforcement’. Full results will be available on the HCOEA website soon. Alan J Smith FCICM is the newly appointed Chair of the High Court Enforcement Officers Association. Overall, the changes would be a positive step, allowing creditors <strong>and</strong> their representatives the ability to make an informed choice about how <strong>and</strong> when their debt is recovered. Advancing the credit profession / www.cicm.com / <strong>July</strong> & <strong>August</strong> <strong>2021</strong> / PAGE 49
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