CM December 2021

ROUND TABLE
JUDGMENT
ENFORCEMENT
Is it time for creditors to have more options
when enforcing judgments below £600?
IN August, the High Court Enforcement
Officers Association (HCEOA)
published the results of its survey into
whether the High Court and County
Courts Jurisdiction Order 1991 should
be amended to allow creditors to
choose to use High Court Enforcement Officers
(HCEOs) to enforce judgments below £600.
Currently, only County Court Bailiffs (CCBs)
can enforce sub £600 judgments and Consumer
Credit Act regulated debt.
CICM and corporate partner High Court
Enforcement Group ran a roundtable in October
with highly respected industry experts from
solicitors, businesses and industry bodies, to
discuss the survey findings and consider how
enforcement change can be effected to provide
the credit and legal industries the support
required.
The consensus was that there is not an
appropriate set of enforcement options today.
Reform is needed now, delivered in a compliant
way considering the needs of debtors. Part
of that reform is automation; to speed up
transferring and issuing writs.
Whilst the main focus of the discussion was
on sub £600 debt, all believed that creditors
should also have choice for enforcement of
regulated debt. There is no justification for the
distinction.
The more debt recovered, the greater
the benefit to the creditor and UK plc. This
is particularly true for SMEs who can be
significantly impacted by bad debt, sometimes
causing them to go out of business.
Sue Chapple FCICM, CEO of CICM and
roundtable chair, stressed that the cost of not
taking action to reform enforcement is high:
“For smaller business, the debt ripples so far
and wide and the impact is on wider society.
We need a focus also on bigger companies not
paying small businesses.”
The question was asked whether these lower
value judgments are worth HCEOs’ time. Alan
J Smith, HCEOA Chair, confirmed that they
are. In response to questions about fees and
affordability, Alan said: “HCEO companies
and the Association have always said that
they are very happy to work with the Ministry
of Justice to agree a fee scale agreeable
for all parties. HCEOS are already enforcing
employment tribunal awards with no
minimum debt value – the model exists and the
system works.”
A MATTER OF CHOICE
Opening up choice would allow CCBs to focus
on process serving and the enforcement of
possession orders, where 40-week delays are
common.
Most cases currently are not even reaching
the CCB, as they go into the warrant of control
call centres. By this stage the client has already
gone through debt collection; they want their
money back and not another call centre.
Robert Thompson, Civil Court Users
Association Chair, agreed that there is little
choice currently for regulated or sub-£600
judgment enforcement: “I want to open the
Jurisdiction Order to regulated debt as well as
sub-£600 because County Court Bailiffs cannot
cope.”
The other issue with the County Court route
is the lack of information on why they didn’t get
a result. When clients instruct their solicitor,
they incur costs and have to believe there is
some chance of success.
Looking forward, everyone present felt that
enforcement is integral and that will only
increase in the coming years, especially as
COVID business loans have to be repaid.
EDUCATION AND TRANSPARENCY
Debtors need better understanding of the
consequences of not paying debt and how
a more collaborative approach can reduce
stress and mental health issues. For businesses
credit checks are often forgotten and contract
terms and conditions are ‘a tsunami waiting
to happen’ as businesses have tinkered with
theirs over the years and they may not be fit for
enforcement.
All agreed that the industry needs to
fully open for HCEOs, with transparency on
fees, enforcement companies accountable and
league tables so they can be judged on results.
As a final word of advice, Rob Thompson
said: “We need to keep a close eye on what is
being suggested for reform. Some ideas are
good, such as allowing the debtor to check
the EA’s credentials, but some are dangerous.
Allowing the debtor to apply online for a stay of
execution is a bad idea; it would happen every
time.”
CICM and HCE Group would like to thank
everyone who took part for their insightful
contributions.
You can download the HCEOA survey report
from www.hceoa.org.uk.
Brave | Curious | Resilient / www.cicm.com / December 2021 / PAGE 47