4 things the government should do to make sure bailiffs follow the rules
By: Joe Lane
Tags: Economics, Debt, Consumer, Bailiffs, Money

We helped 41,000 people last year who were struggling with problems caused by bailiffs. As part of the Taking Control campaign we’re calling on the government to introduce independent regulation of the sector. Here are 4 things they need to do.

1. Recognise the damage caused by bad bailiff debt collection

The problems caused by bailiffs aren’t new. We’ve called for tougher regulation of bailiffs since at least 2006. Today, we submitted evidence to the government which shows the scale of the problem.

Bailiffs collect debt from people who are in financial difficulty and often face other vulnerabilities. 2 in 5 of the people we helped last year had a long term health condition or disability. When bailiffs break the rules they push people further into debt and cause stress and anxiety — making it harder for people to get their finances back on track.

The impact of bailiffs — YouGov polling of adults in England and Wales who had a negative experience with bailiffs

2. Ignore bailiffs’ claims they can regulate themselves

Bailiffs will claim that their standards are improving. They aren’t.

We helped people with 90,000 bailiff-related problems last year — 24% more than when the government aimed to ‘clean up the industry’ in 2014. And advisers think bailiff behaviour is getting worse, with over 4 in 5 saying bailiffs’ use of threatening behaviour has stayed the same or got worse since 2014.

The current self-regulatory approach doesn’t hold bailiffs to account when they break the rules. Both the people who are contacted by bailiffs and our advisers say the complaints process doesn’t work. In total, nearly 3 in 4 people (74%) who were affected by bailiff rule breaking over the last 2 years didn’t complain.

3. Commit to regulating the industry during this parliament

The rules introduced in 2014 were largely positive. They set out a clear fee structure, introduced a new licensing regime for bailiffs, and clarified the goods bailiffs can’t remove from people’s homes — such as things they need for their work.

But they haven’t worked because they’re not enforced properly. A new formal complaints mechanism, introduced in the 2014 reforms, has only been used 56 times.

The government should use its call for evidence to commit to solving the long-term problem of bad bailiff behaviour. Only an independent regulator can make sure bailiffs follow the rules.

4. Work with us and the sector to develop a model of regulation

We recognise that introducing a regulator won’t be easy. At a minimum, a regulator needs to be able to license, supervise and sanction bailiffs when they break the rules.

But it would be worth it. Our estimate is that a regulator would cost around £3 million a year and would save the government, taxpayers and people in debt as much as £160 million.

The government essentially has 2 options. They can create a new body to regulate bailiffs — in a similar way to the creation of the claims management regulator. Or they can give powers to an existing body — such as the Financial Conduct Authority. We want to work with the government to develop a model of regulation that works.