Credit Management November 2023

HIGH COURT ENFORCEMENT OFFICERS ASSOCIATION
Bolstering the UK Economy
The pivotal role High Court enforcement plays in
supporting a fair and efficient economic environment.
AUTHOR – Alan J. Smith FCICM
HIGH Court enforcement is a critical
component of the United Kingdom's
legal and financial infrastructure.
Its role extends far beyond settling
disputes; it actively contributes to
the stability, growth, and prosperity
of the UK economy.
It is not just huge corporations recovering large
debts. Small businesses, sole traders and individuals
all rely on High Court enforcement to recover money
owed to them and prevent them – as todays creditors
– from becoming the debtors of tomorrow.
Preservation of small businesses
When businesses are not paid for goods or services
provided, their cashflow suffers, limiting their ability
to invest, expand, and create jobs, or even meet their
day to day running costs. With the cost-of-living crisis
the impact on small businesses is more noticeable
than ever.
The backlog of cases in the County Courts is
making it difficult for the businesses and individuals
who are relying on this income to recover the money
owed to them. While judgments for debts over
£600 can be transferred up to the High Court for
efficient recovery, smaller debts that can make a real
difference between a business staying open or facing
insolvency are taking much longer to recover.
By successfully recovering debts, businesses can
maintain liquidity, meet their financial obligations,
and reinvest in their operations, which is why we’re
committed to campaigning for freedom of choice for
court users. A simple change to legislation would
allow them to choose a High Court Enforcement
Officer to help recover debts under £600, increasing
their viability and preventing them from falling into
debt of their own.
Reinforcement of Contractual Commitments
The UK economy thrives on a robust legal system
that enforces contractual commitments. High
Court enforcement plays a vital role in upholding
these commitments, reinforcing the principle that
agreements must be honoured.
This commitment to enforcing contracts promotes
trust and confidence in business transactions,
encouraging investors and businesses to engage in
economic activities with the assurance that their
rights and agreements will be protected.
Encouragement of Responsible Borrowing
and Lending
When debtors know that unpaid debts can lead
to legal consequences, they are incentivised to
fulfil their financial obligations. It can also deter
potential debtors from engaging in non-payment or
defaulting on financial obligations, as they are aware
of the potential legal consequences. This deterrence
contributes to a more efficient and responsible
economic ecosystem.
On the lender side, the knowledge that there is a
mechanism for debt recovery reinforces responsible
lending practices, discouraging the extension of
credit to individuals or businesses with a history of
non-payment. This fosters a healthier credit market
and reduces the risk of financial instability.
As an Association we work closely with the newly
formed Enforcement Conduct Board to ensure
High Court enforcement is carried out flexibly and
responsibly, particularly in cases involving vulnerable
debtors. High Court Enforcement Officers have a role
in ensuring that the vulnerable and socially excluded
are protected and that the recovery process includes
procedures agreed between HCEOs and creditors
about how such situations should be dealt with.
Support for Landlords
The property sector is a significant contributor to
the UK economy. High Court enforcement plays
a crucial role in supporting this by assisting in the
enforcement of Orders of Possession and eviction
proceedings. This is particularly important in cases
where tenants fail to pay rent or breach tenancy
agreements.
By helping landlords regain control of their
properties, High Court enforcement ensures that
rental income is protected, preventing financial losses
and disruptions in property management. A stable
property sector positively impacts property values,
property tax revenue, and associated industries, such
as construction and property management.
With the recent suspension of County Court bailiff
appointments, it is High Court enforcement that
has been able to continue to provide support for
landlords looking to recover their property or rent
arrears.
A vital role for UK plc
No system is perfect, but we’ve been working hard
with Government and other stakeholders to make
High Court enforcement more accessible through
digitisation and ensure that standards are maintained
through appropriate funding.
Our members perform a vital role for UK plc
– while they are doing the work that no one really
thinks about, High Court enforcement preserves
the financial health of businesses, encourages
responsible financial behaviour, and reinforces
contractual commitments. Its role in maintaining a
fair and efficient economic environment underscores
its significance as a cornerstone of the UK economy.
Alan J. Smith FCICM is Chairman
of the High Court Enforcement Officers Association.
Brave | Curious | Resilient / www.cicm.com / November / PAGE 17