Bailiffs: Regulatory Reform

Debate between Emma Reynolds and John Howell

Wednesday 9th January 2019 Westminster Hall

[Emma Reynolds]

Indeed it is. It seems to me that it is not in the interests of the local authority. For instance, Hammersmith recognised that if people are forced into more debt, they are unlikely to be able to pay it off. As I understand it, there is no compulsory obligation on bailiffs to accept a repayment plan, which the Government should consider carefully. In fact, all the incentives seem to be stacked against the bailiff being cautious or sympathetic to the debtor. All the incentives seem to be for the bailiff to collect as much money or as many possessions as possible on that visit.

Bailiffs have extraordinary rights to seize possessions and the police are the only other profession that I can think of that is permitted by law to enter someone’s property. The police can do so only if someone is suspected of serious criminality and they have to secure a search warrant and read someone their rights. Those with a complaint can report the police to the Independent Office for Police Conduct. Bailiffs too need a court order, but there seems to be no requirement for bailiffs to tell someone their rights. Indeed, evidence suggests that bailiffs often misrepresent people’s rights to gain entry to their home and seize possessions.

[John Howell (Henley) (Con)]

The hon. Lady is moving on to the area of complaints, which is close to my heart. Does she agree that there needs to be a simple system that people can use that includes something like mediation—alternative dispute resolution—that is quick to implement but very friendly and not as intimidating as going to court?

[Emma Reynolds]

The hon. Gentleman pre-empts the next section of my speech, which is all about that. Short of taking a bailiff to court, there is no meaningful way of seeking redress, because there is no simple or clear complaints procedure. Arguably there is no meaningful complaints procedure, although I will come to that.

In the case of my constituent, I complained to the local council, which was enforcing a parking fine. The council and I complained to the bailiffs company, but it disputed my constituent’s version of events. I complained to the bailiffs trade association, which we have discussed. I got a letter back saying that it was the word of my constituent against the word of the bailiffs. I raised the case in Parliament and we are having a debate today, but even as an MP, I felt powerless to take the case any further, which was deeply frustrating. Can it be right that, short of taking the case to the courts, our constituents have no other means of redress? It cannot, and the bailiffs know it—they know that most people in debt will not have the money to take them to court. There have been only 56 complaints in the courts since the 2014 reforms despite reported widespread bad practice.

One couple explained to me that their attempts to take a complaint forward had been blocked at every opportunity, including by claims from the bailiffs company that letters had been lost in the post—that old chestnut—and had taken nearly a year and cost thousands of pounds. Bailiffs are largely unaccountable, which is why I am calling on the Government to bring forward urgent reform.

Specifically, I call on the Minister to take forward the proposal of a cross-party group of MPs led by my hon. Friend the Member for Leeds West (Rachel Reeves). In a letter sent to the Minister today, they ask the Government to set up an independent regulator to enforce the rules. The regulator, which could be an existing body or a new body, should have a range of powers and responsibilities to set and enforce rules, and standards for bailiffs, and to take both a reactive and proactive approach, investigating firms and individuals where there are complaints but also proactively monitoring standards. Crucially, a regulator must ensure access to redress. Alongside that—this speaks to the point of the hon. Member for Henley (John Howell)—we need a fair, free, simple and transparent complaints procedure.

Crucially—I very much speak on behalf of my disabled constituent on this point—bailiffs must be required to identify vulnerable households. To end the targeting of vulnerable people, there have to be clear procedures for referring debts back to creditors when enforcement is not appropriate.

The impact of those reforms must be to change the culture of the industry. There are not enough sanctions on bailiffs, and all the incentives drive bailiffs in the wrong direction—to penalise people rather than help them. The debt advice charities are highly regulated. The debt collectors are also regulated. The bailiff industry is an anomaly. I ask the Minister to take urgent action. They are not difficult reforms and, crucially, implementing such changes would mean that bailiffs played by the rules and treated people with the respect that they deserve.