Proper bailiff regulation is long overdue
3 min read
We need a powerful independent regulator to make sure vulnerable people are protected from rule-breaking bailiffs.
If, like millions of people across the UK, you were struggling with an energy bill or a water bill, you would hope to be treated fairly, and with due regard to your circumstances. This hope would be supported by a regulator like Ofgem or Ofwat setting standards and overseeing firms to make sure they are collecting debt fairly.
But what if your debt was being recovered by an enforcement firm – bailiffs with extraordinary debt recovery powers? You would find that there is no statutory regulator to prevent bad practice.
For StepChange client Michael and the 2m people like him impacted by bailiffs since the cost of living crisis began, this is a real and pressing issue. Michael faced bailiff action when he fell into council tax arrears following a serious motorbike accident. As government debt collection tends to be more aggressive than in the financial services sector, he faced rapid escalation of debt, threats of imprisonment, and problematic tactics to place him on an unaffordable repayment plan, a plan he is still paying today. The truth is, he had no protection against the poor behaviour he faced, despite progress made in the past few years.
In 2021, I was part of a working group that contributed to the creation of a voluntary bailiff sector regulator, the Enforcement Conduct Board (ECB). This marked a big step forward and shone a light on the sector, but the simple fact is the ECB now needs real powers, powers it currently lacks, to guarantee its effectiveness and long-term independence. These are powers that StepChange, alongside our Taking Control coalition partners, has long been pushing for.
Most recently, StepChange has been working closely with Luke Charters MP to campaign for an independent regulator as a top priority. And it’s not just us that deem this a top priority – four in five UK adults (81 per cent) when surveyed supported the introduction of a regulator which ensures bailiffs abide by rules to treat those in debt fairly. It appears the public agrees with us that this is a no-brainer.
A no-brainer because bailiff activity tends to exacerbate financial hardship rather than provide a reasonable route to debt recovery, as our research, Looking Through The Keyhole, revealed. The report found that over half (54 per cent) of the people we spoke to who had experienced bailiff action received threatening or aggressive communications, and the same proportion were pressured into unaffordable repayment plans. Most shockingly, almost all (95 per cent) said their interaction with a bailiff negatively impacted their mental health and wellbeing. In each case, the victims had no real right to recourse from a proper independent regulator.
The truth is that debt does not exist in a vacuum: people experiencing bailiff action are often facing situations like illness, loss of income, or other stressful life events that can make it much more difficult to manage debt. We need to see higher standards in the bailiff sector, to support people in these vulnerable situations, not behaviour which may push them deeper into the red.
That’s why it’s great news that Charters’ 10 Minute Rule Bill, Regulation of Bailiffs (Assessment and Report), passed its first hurdle in the House of Commons. This development, whilst early stage, prompts a chance for the government to commit to placing the enforcement industry under proper regulation, a low-cost, high-impact reform that will signal compassion at the heart of government.
It’s about time the government established a statutory regulator of the bailiff industry to protect some of the most financially vulnerable in society.
Peter Tutton is the Director of Policy, Research and Public Affairs at StepChange Debt Charity.
