Bailiffs: Regulatory Reform

Yvonne Fovargue Excerpts

Wednesday 9th January 2019 Westminster Hall

[Yvonne Fovargue (Makerfield) (Lab)]

I congratulate my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) on securing the debate. I have long been interested in bailiff practice both as chair of the all-party group on debt and personal finance, and from my long association with Citizens Advice as manager of the local bureau. I had hoped that the 2014 regulations would stop the bad practice I saw when I was doing that work. I saw bailiffs who threatened to take children into care. On one occasion I heard them trying to seize a family pet in front of the children. Perversely, the regulations have created consolidation into bigger firms, and it is easier for the people at the top of those firms to blame individual bailiffs as rogues, and to say that it is nothing to do with them, their training or their practices. I have sympathy for individual bailiffs. As we have heard, there are some very bad employment practices such as working on commission and payment by results. We must stop the cycle of desperate people chasing desperate people.

Bailiffs are still breaching the new regulations. According to StepChange, a third of the 2.2 million people contacted by bailiffs in the past two years experienced them flouting the law. Bailiffs forced entry and took goods needed for work. Half the StepChange clients surveyed in 2016 said that affordable repayment plans had been refused. I have certainly never known a bailiff to accept the single financial statement that most other creditors accept. Complaints are too difficult. Only 28% of people complain and, as we have heard, there have been 56 complaints to the court since 2014. Does that mean that we have had only 56 problems with bailiffs? The charities would certainly dispute that.

To me, the question is not why we should regulate bailiffs but why we should not. Everyone else is regulated. Debt collectors and debt charities are regulated, but bailiffs are free from oversight by an independent regulator despite dealing with people in probably the most vulnerable circumstances who should have the most protection. Their only protection at the moment is guidance. As others have asked, what are the sanctions if that is ignored? Many hon. Members have put forward the same solution: independent regulation twinned with a simplified single free and independent complaints procedure similar to the system used for debt collectors. It is not only the frontline charities who call for that—some bailiffs firms would like it because they want to get some of the rogues out of the business. Self-regulation has not worked. There is enough evidence to prove that there is a systemic problem and not just a few bad apples. Everyone who deals with people in very vulnerable circumstances is regulated, so I ask the Minister why bailiffs should be the exception. I ask her to act quickly to prevent anyone else paying the highest price, as Jerome Rogers did.