Skip to main content

Taking control of goods act 2013

Before April 6th, 2014, bailiffs and enforcement agents were subject to less stringent regulations. This allowed some unethical collection agencies to exploit debtors by engaging in practices like unexpected seizures of goods, inflating collection fees, and occasionally seizing more assets than necessary to settle the debt.

Following a comprehensive industry review, the government introduced a set of clear and fair rules and regulations that significantly improved transparency and reduced potential abuses.

1st Stage – Compliance This stage lasts for seven consecutive days, known as “clear days.” It begins when you receive a Notice of Enforcement, informing you of the agency’s intent to visit your premises to seize assets. If no alternative payment agreement is reached during this stage, the process advances to the next phase.

Fee: £75

2nd Stage – Enforcement If the debt remains unsettled or no payment arrangement is established during the Compliance stage, an Enforcement Agent will visit your property to either seize your assets or take control of them for future removal. Note that if the agency is enforcing multiple Liability Orders or Warrants of Control against you, this fee is only applied once.

Fee: £235 (plus 7.5% of the debt amount over £1,500.00).

3rd Stage – Sale This fee applies when the Enforcement Agent physically removes the controlled goods and prepares them for sale. They are also authorized to charge for related expenses, such as storage fees or locksmith services.

Fee: £110 (plus 7.5% of the debt amount over £1,500.00).

What documentation must Bailiffs provide? Gone are the days of vague or inconsistent information from Enforcement Agencies, such as unclear fees and undated letters.

Required notifications under the new regulations include:

Notice of Enforcement

  • The total debt owed, including the first-stage compliance fee of £75.
  • Additional fees must be stated if payments are not timely.
  • A specified date for the bailiff’s visit if the payment plan is not adhered to.
  • The deadline for full payment or payment arrangement.

Controlled Goods Agreement

  • A detailed list of goods under the agreement, including specific details like color, date, model, serial numbers, and other identifiers.
  • Must be signed by the debtor or an authorized representative.
  • Total cost for seizing the goods.
  • A breakdown of the total amount due (including fees incurred during the Compliance & Enforcement Stages and any other expenses).
  • Clear terms regarding the removal of goods if the payment agreement is violated.

Warning of Immobilisation

  • Required if a vehicle is to be clamped.
  • Must be signed by the bailiff or enforcement agent.

Notice of Intention to Re-enter

  • Issued if the Controlled Goods Agreement payment plan is not maintained.
  • Advises the bailiff to re-enter the premises to ‘remove them for sale’ or ‘inspect the goods’.
  • Breach of the Controlled Goods Agreement must be stated.

Notice after Entry or Taking Control of Goods (on a highway) and Inventory of Goods Taken into Control

  • Required to take control of a vehicle on a highway or to enter premises.
  • Payments must be clearly due by a specified date or time.
  • Goods are released only after full payment or upon signing a payment arrangement.

Notice that Goods Have Been Removed for Storage or Sale

  • Provided when goods are actually removed.
  • All fees, including any ‘expenses’ and storage fees, must be outlined and charged.
  • Goods will not be sold if full payment is received, allowing collection of the goods.

Inventory

  • Confirms that goods have been ‘taken into control’.
  • Requires the signature of the bailiff or enforcement agent.

Notice of Sale

  • Must be issued prior to the sale of goods.
  • Must include co-owners, all fees charged, expenses, and details of the date, time, and location of the sale.
  • Lists the goods and their ‘valuation’.
  • Sale is conditional on meeting the reserve price; if not met, a new date and location for the sale must be provided.

Notice of Abandonment of Goods

  • Informs that the listed goods have been formally abandoned.
  • The reason for abandonment is typically that the debtor or co-owner was not notified of the sale within the required period.
  • Goods must be collected within 28 days of the date provided.