Martin Lewis: New mandatory bailiff regulation is a 'genuine step forward'
Bailiffs will be forced to comply with new rules or lose their licence, the Government has announced today (Friday 28 August). Martin Lewis, founder of charity the Money and Mental Health Policy Institute (MMHPI) and MoneySavingExpert.com, hailed the move as a "genuine step forward" given "most people who get a bailiff knocking at their door are vulnerable".
In England and Wales, it's a bailiff's job to collect debt. They're officially called 'enforcement agents', but they're more commonly known as bailiffs. They are required to follow certain rules, and they do have a regulator, but membership is voluntary – and that regulator doesn't currently have enforcement powers.
Today, the Government's said it's looking to "toughen up" the regulation of bailiffs to "ensure people in debt are treated fairly", putting forward a spate of new rules.
Martin and MMHPI have long campaigned for better regulation of bailiffs. Earlier this year, Martin said on his BBC Question Time podcast that it was "outrageous" that there wasn't yet a "proper, independent regulator".
Martin Lewis: 'Aggressive debt collection can and does destroy lives'
Commenting in response to the Government's announcement on 28 August, Martin said:
Sadly, you're over three times more likely to be in debt crisis if you have a mental health problem, one result of which is that most people who get a bailiff knocking at their door are vulnerable.
Many bailiffs behave fairly – but some have got away with acting with impunity due to the lack of mandatory independent regulation. We've long campaigned for that to change as aggressive debt collection can and does destroy lives.
So we're delighted the Government has listened and made today's bailiffs announcement – it's a genuine step forward! Bailiffs will have to comply with the rules or lose their licence. And because regulation is mandatory not opt-in, it should be easier in future to bring in faster, more ambitious, compassionate rules. Let's hope so.
Bailiffs will be regulated, and you'll be able to complain more easily
Under the Government's plans to crack down on "aggressive" private bailiffs in England and Wales:
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Bailiffs will be REQUIRED to be accredited. Currently, accreditation with the independent regulator – the Enforcement Conduct Board (ECB) – is voluntary, and though most firms are signed up, a number of smaller firms are not.
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The regulator will be able to set binding rules for bailiffs. The ECB will no longer need to depend on its members to voluntarily comply with its rules – instead, it will be able to enforce them, and firms that don't comply will not be allowed to continue trading.
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You'll have access to an independent complaints process. If you're unhappy with how a bailiff's treated you, under the new rules, you'll be able to make complaints directly to the ECB – and firms will be required to comply with the complaints process.
The Government said that currently, families are at times pressured into repayments that leave them unable to afford essentials of day-to-day life as they continue to repay what they owe.
We've asked the Government for further detail on how and when these new rules will take force, and whether they'll apply to local authority in-house bailiff teams, as well as to private bailiffs. We'll update this news story when we know more.
For full information on your current rights, see our How to deal with bailiffs guide.
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