New bailiff standards the 'first step' towards a legally binding regime, Government says

The updated National Standards (14-page / 120KB PDF) cover the work of private sector enforcement agents recovering debts owed to the public sector for the first time. Other additions deal with tackling intimidating and threatening behaviour and preventing bailiffs from misrepresenting their powers, as well as reinforcing how firms should deal with complaints.

Justice Minister Jonathan Djangoly said that the Government would consult shortly on proposals for a new regulatory regime which would include new rules around modes and times of entry and which goods are exempt from seizure.

Djangoly said that the Government intended to bring an end to "rogue behaviour" by bailiffs that could make people's lives a misery.

However property law expert Siobhan Cross of Pinsent Masons, the law firm behind Out-Law.com, said that the Government's current focus on unacceptable practices for bailiffs is likely to further delay the introduction of a less draconian process for the collection of rent arrears which has been delayed for five years.

A bailiff is someone authorised to collect a debt on behalf of a creditor. Currently a certified bailiff can enter leased commercial premises occupied by a defaulting tenant and remove and sell goods owned by that tenant up to the value of the rent arrears. This remedy, known as 'distress for rent', effectively allows a landlord to recover rent arrears without initiating court proceedings.

Part 3 of the Tribunals, Courts and Enforcement Act, which received Royal Assent in 2007, abolishes distress in rent arrears cases. The Act creates a new process for collecting commercial rent arrears called Commercial Rent Arrears Recovery (CRAR), however the Government has not said when this will be brought into force.

Although the new CRAR process is broadly similar to the current remedy, it will only be available for 'pure' rent arrears which cannot include other payments such as service charges or insurance contributions. In addition, the landlord must first serve an enforcement notice on the defaulting tenant before the property can be entered or any goods removed.

A spokesman for the Ministry of Justice told Out-Law.com that the introduction of the new process "had not been dropped".

"We will consult on how best to implement this proposal as part of our wider consultation process in the Spring," he said.

The new guidance states that bailiffs cannot behave in a threatening manner or use unlawful force to gain access to a debtor's home or business. They must also avoid behaving in a way that would publicly embarrass a debtor, such as discussing a debt with anyone except the person owing that money.

It also stresses that bailiffs have a duty of care towards "vulnerable" groups such as the elderly, disabled, single parents and unemployed people. Bailiffs must use discretion when collecting debts from these groups, and must leave a property when only a child is present.

Justice Minister Jonathan Djangoly said that the new standards were the Government's "first step" towards tackling "the rogue behaviour that can make people's lives a misery".

"Whilst I know the majority of bailiffs are responsible, too many are not. We often hear stories, and see evidence, of people being mistreated by heavy-handed bailiffs. We are working with the bailiff industry, and other groups, to make sure that cannot happen anymore, but also that people can still collect their debts fairly," he said.

He added that the new regulatory regime would become law as soon as possible.