Last week, the enforcement of warrants of entry to install prepayment meters was in the public eye. Confusingly, the firms who carry out this work are not required to use accredited Enforcement Officers, and are not currently under the oversight of the Enforcement Conduct Board. However, this distinction is not clear to members of the public, or probably to many creditors, and so once again the level of concern about enforcement more widely, including the enforcement of debt under the Taking Control of Goods Act, is heightened. The ongoing challenges of the cost-of-living crisis mean more people are also coming into contact with debt enforcement, which is carried out by Enforcement Officers (formerly known as bailiffs), so the focus on the sector is only likely to increase in the months ahead.
The risk for those in the debt enforcement industry is that the important and difficult work they carry out is not appreciated. Enforcement Officers are responsible for recovering half a billion pounds owed to public bodies, small businesses and individuals each year. When there is £5 billion of council tax payments outstanding, then there is clearly a role for fair, effective debt collection, to ensure the proper funding of local services. But with an increasing number of families and individuals facing problem debt comes a responsibility to treat people fairly and to look out for the vulnerable. Our recent research shows that 36% of families with children are worried about getting into serious debt in the next 6 months.
The ECB was conceived through a recognition of these two elements – the importance of effective, ethical debt recovery alongside a commitment to ensure that everyone experiencing debt enforcement is treated fairly. That’s why the creation of the ECB was supported through a joint initiative between the debt enforcement industry and major debt advice charities. They jointly agreed to create an independent body to drive and uphold standards in the sector and to ensure that the increasing numbers of people who are subject to enforcement action are all treated fairly.
It’s not just the public that have a heightened awareness of the enforcement industry. The media will rightly continue to scrutinise the sector and hold it accountable for its ‘bad apples’ on their front pages. Government is also watching. While the Ministry of Justice had originally stated that the ECB would have two years to establish itself and its evidence base before it reviewed if it should be placed on a statutory footing, it recently noted that this timeline could be brought forward ‘if necessary’.
Meanwhile, the ECB will establish robust oversight of the enforcement industry and seek to drive up standards where necessary – gathering an evidence base as to the scale of any problems that may exist, setting out clear new standards for the sector, and seeking to put in place effective means of enforcing them. It is urgent and vital work that we will carry out in collaboration with the enforcement and debt advice sectors who were instrumental to our formation.
In the spirit of collaboration, we also need creditors to take action to ensure they only use responsible enforcement businesses who are accredited by the ECB and comply with the standards that we set. I have been delighted that Lowell, the UK’s biggest debt purchaser and Overdales Solicitors, the largest single user of high court enforcement and County Court Bailiffs, have agreed to make ECB oversight a requirement for their enforcement services providers. It is high time that Local Authorities and utility companies made the same commitment.
I am pleased that the overwhelming majority of the enforcement sector are supporting our work. Our initial ‘seed funding’ from the sector has enabled us to establish the organisation and in the next few weeks we will be looking to secure our first levy from the industry to support our work over the coming year.
We’ve had a busy first few months. We have bolstered our independence with the appointment of four board members. We have carried out some initial research. We have officially launched the organisation in both Cardiff and Westminster. And we have appointed our first CEO, Chris Nichols, who will join us in March.
It’s been a privilege to hear from people experiencing enforcement as well as those on the frontline of both the enforcement industry and debt advice sector over these past months, to gain a deeper understanding of the issues people are facing in the context of the cost-of-living crisis.
These experiences and conversations will inform our work ahead as we establish the oversight framework and associated standards and processes that the enforcement sector needs. We are committed to taking this forward transparently, so everyone can see what we are striving to achieve. One of the things people have told us over the last few months is that they would like to hear more from us directly about our work and our plans – so as part of addressing that appetite I will be producing more of these blogs.
There will continue to be many eyes on the enforcement sector and the Enforcement Conduct Board will maintain our unrelenting focus on our mission – to ensure everyone experiencing enforcement is treated fairly.