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Kicking back at the bailiffs Kicking back at the bailiffs
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Local councils will have to monitor bailiffs and can no longer receive "kickbacks" from them under new government guidelines to protect debtors from intimidating treatment.Local councils will have to monitor bailiffs and can no longer receive "kickbacks" from them under new government guidelines to protect debtors from intimidating treatment.
The guidelines, issued by communities secretary Eric Pickles, also give the thumbs down to bailiffs exploiting residents through "phantom visits": where they charge inflated fees for simply posting a letter through a resident's door without attempting to speak to the people involved or negotiate a payment plan. Figures suggest the five biggest bailiff companies earn a combined revenue in excess of £60 million.The guidelines, issued by communities secretary Eric Pickles, also give the thumbs down to bailiffs exploiting residents through "phantom visits": where they charge inflated fees for simply posting a letter through a resident's door without attempting to speak to the people involved or negotiate a payment plan. Figures suggest the five biggest bailiff companies earn a combined revenue in excess of £60 million.
The guidelines tell councils to terminate contracts with bailiffs found to be employing dodgy practices and say they should report any fraudulent activity to the police.The guidelines tell councils to terminate contracts with bailiffs found to be employing dodgy practices and say they should report any fraudulent activity to the police.
Pickles said: "It is unacceptable for councils to employ burly bailiffs with heavy-handed tactics like kicking down doors, making phantom visits or charging excessive fees – it is unfair and damages a council's standing in the community.Pickles said: "It is unacceptable for councils to employ burly bailiffs with heavy-handed tactics like kicking down doors, making phantom visits or charging excessive fees – it is unfair and damages a council's standing in the community.
"Our new guidance is crystal clear: it is time to stop the dodgy practices where town halls collect contractual kickbacks from bailiffs that will do almost anything to make money.""Our new guidance is crystal clear: it is time to stop the dodgy practices where town halls collect contractual kickbacks from bailiffs that will do almost anything to make money."
The guidelines say it is inappropriate for councils to receive extra payment or profit-sharing from the use of bailiffs and the charging of fees. Contracts should not involve rewards or penalties that encourage the use of bailiffs where it would not otherwise be justified. For example, the London borough of Harrow was expected to recover £1m by contractually making its bailiffs hand over 8% of their fees.The guidelines say it is inappropriate for councils to receive extra payment or profit-sharing from the use of bailiffs and the charging of fees. Contracts should not involve rewards or penalties that encourage the use of bailiffs where it would not otherwise be justified. For example, the London borough of Harrow was expected to recover £1m by contractually making its bailiffs hand over 8% of their fees.
Councils have been told they must actively manage their contracts with bailiffs by monitoring, conducting spot checks and seriously assessing complaints. The guidelines make clear councils are responsible for the action of bailiffs they use, whether directly employed or from private companies.Councils have been told they must actively manage their contracts with bailiffs by monitoring, conducting spot checks and seriously assessing complaints. The guidelines make clear councils are responsible for the action of bailiffs they use, whether directly employed or from private companies.
Local authorities should require their bailiffs to provide debtors with a contact number for the billing authority and give them standard documentation explaining how to query the action or complain.Local authorities should require their bailiffs to provide debtors with a contact number for the billing authority and give them standard documentation explaining how to query the action or complain.
Councils should also ensure that their fees are transparent and open to scrutiny, for example by publishing their standard scale of fees on their website. They must ensure bailiffs provide clear and accurate information about costs to the bill payer.Councils should also ensure that their fees are transparent and open to scrutiny, for example by publishing their standard scale of fees on their website. They must ensure bailiffs provide clear and accurate information about costs to the bill payer.
Citizens Advice recently reported a 38% increase in complaints about private bailiffs over the past five years – almost nine in 10 bailiff problems the charity deals with relate to private bailiffs, who collect debts such as council tax and parking penalties.Citizens Advice recently reported a 38% increase in complaints about private bailiffs over the past five years – almost nine in 10 bailiff problems the charity deals with relate to private bailiffs, who collect debts such as council tax and parking penalties.
In the year to March 2013, its bureaux in England and Wales helped with 60,652 problems relating to bailiffs. Figures released recently by the Money Advice Trust also show a 40% rise in calls to its National Debtline service for help with council tax arrears, and the charity estimates this rise is partly down to the increasing use of bailiffs to collect debts owed to local authorities.In the year to March 2013, its bureaux in England and Wales helped with 60,652 problems relating to bailiffs. Figures released recently by the Money Advice Trust also show a 40% rise in calls to its National Debtline service for help with council tax arrears, and the charity estimates this rise is partly down to the increasing use of bailiffs to collect debts owed to local authorities.
"We see cases where bailiffs overstate their powers, act aggressively and bump up debts by levying excessive fees and charges," says Citizens Advice chief executive Gillian Guy. "Local authorities must protect people from bailiffs who flout the law.""We see cases where bailiffs overstate their powers, act aggressively and bump up debts by levying excessive fees and charges," says Citizens Advice chief executive Gillian Guy. "Local authorities must protect people from bailiffs who flout the law."
In August 2012 Citizens Advice analysed more than 400 bailiff problems and found two in five bailiffs threatened the use of force to gain access to a property and one in four threatened to take items, such as clothing or work tools, that are banned from removal.In August 2012 Citizens Advice analysed more than 400 bailiff problems and found two in five bailiffs threatened the use of force to gain access to a property and one in four threatened to take items, such as clothing or work tools, that are banned from removal.
You can view the full document, Guidance to Local Authorities on good practice in the collection of council tax arrears here.You can view the full document, Guidance to Local Authorities on good practice in the collection of council tax arrears here.
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