Credit Management July and August 2021

HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION
A Freedom of Choice
Modernising the High Court Enforcement system
across England and Wales.
AUTHOR – Alan J Smith
WE all know that the
COVID-19 pandemic has
had an unanticipated and
lasting effect on finances
across the UK. With the
pause on enforcement
activity and the Government’s new Breathing
Space moratorium, debtors have rightly been
given the time and space needed to seek
advice and 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
and uncertainty. While £600 might not sound
like much, for a small business, or a creditor
owed multiple, smaller debts, this soon adds up
and 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 and 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 and 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 and their clients,
it has been clear for some time that the current
system is less than ideal for creditors and
landlords 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 and, in some cases, administration.
Not to mention the reputational damage
and loss of earnings from solicitors and 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, and
will be using this feedback to make a case for
change with relevant stakeholders and 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 and
easily by the Lord Chancellor/Ministry of
Justice, and 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 outstanding judgments, and 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 and their representatives the
ability to make an informed choice about how
and when their debt is recovered.
*Figures taken from HCOEA’s recent survey
‘Expanding 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 and their
representatives the
ability to make an
informed choice
about how and
when their debt is
recovered.
Advancing the credit profession / www.cicm.com / July & August 2021 / PAGE 49