Bailiffs: Regulatory Reform

Debate between Neil O'Brien and Ranil Jayawardena

Wednesday 9th January 2019 Westminster Hall

[Neil O'Brien (Harborough) (Con)]

I congratulate the hon. Member for Wolverhampton North East (Emma Reynolds) on securing this important debate; she spoke incredibly well. She referred to the treatment that my constituents received at the hands of bailiffs. Let me add a little about their experience by quoting from a letter they wrote:

“My wife & I (both retired) were woken up by loud banging on our front door at 7.22am. When I answered the door I was confronted by two men who announced that they were bailiffs… The first we knew of the matter was when they…turned up at our door… We were…in shock…at the threat of a tow truck arriving at our door to remove our car and that we were to be humiliated by our possessions being publicly removed from our house… Later that day my wife and I sought advice from our local Citizens’ Advice Bureau... The CAB advisor informed us that we could have refused the officers entry…and that we could have signed a Statutory Declaration of ownership covering goods not belonging to our son which should have prevented our property being taken in lieu for my son’s debt. At no time did the officers inform us about this… My wife and I have never broken the law. Both my wife and I used to work for the prison service. We have both since we retired, been active as local volunteers… I…find it reprehensible that two pensioners should be coerced, albeit politely, into having to hand over their pension savings for something that they are not in any way culpable for. Nor can we believe that British law supports the kind of action we have experienced.”

They are absolutely right. It is clear that the law needs to change and that we need to go beyond the 2014 reforms, and I am glad that the Government have announced the call for evidence. I praise the campaigning work of Citizens Advice and the debt charity StepChange. I think six main things need to change.

First, we need an independent regulator, and I welcome that being raised explicitly in the current review. When I took up my constituents’ case, I was astonished to find that there was no independent regulator, given that there are industries such as the parking industry in which far less serious things happen but in which there is a clear independent regulator. Debt collectors who are not bailiffs and do not have bailiffs’ powers have a regulator, so this is a historical anomaly that needs to be fixed.

Secondly, once the regulator is set up, it needs to improve the process. Part of that is about communication —if my constituents had been informed about the debts at an earlier stage, they could have nipped the whole problem in the bud—but part of it should also be about the offer of an affordable payment plan, as several hon. Members have said. Affordable payment plans have become the norm in most types of debt collection and for most utilities, because we know that vulnerable people are much more likely to pay if they are offered a structured plan rather than getting a big demand all at once. As it happens, my constituents are bright, articulate, hard-working people, but even they felt totally humiliated by the process. Imagine how those who are more vulnerable feel.

[Mr Jayawardena]

Does my hon. Friend agree that it is only right that homeowners should be notified of the fact that a bailiff is about to attend? Of course, we should recognise data protection concerns as well.

[Neil O'Brien]

Absolutely. That point brings me on to the third thing that needs to change: people need to be told what their rights are. My constituents never were. If someone is arrested, they are told their rights; the same thing should happen if a bailiff visits.

Fourthly, there must be a clear and simple complaints procedure through the new independent regulator, backed up with swift fines for bailiffs who break the rules. Fifthly, there must be controls on fees. My constituents’ son’s original debt was increased by half again, and we have heard about the tragic case of Jerome Rogers, which is incredibly moving. I was shocked that a publicly funded institution had initiated the debt collection against my constituents. As hon. Members have said, the incentives in the industry are to seize as much as possible in order to do as much business as possible, and there is no link between fees and ability to pay. Finally, the new regulator should improve training standards for bailiffs, as some have only a few hours of training. That is truly shocking.

A great injustice was done to my constituents, who are hard-working, law-abiding, public-spirited people. We are lucky to have a very able Minister guiding the Government’s response to the call for evidence. Every single day in this country, vulnerable people are being maltreated purely as a result of a historical anomaly. I know that she will want to put that right as soon as possible.