The Analysis News & Opinions


‘Scottish legal collections and enforcement is working well’


Scottish legal and enforcement professionals have insisted that the Scottish courts offer a cost-effective and efficient method of debt recovery, despite misunderstandings south of the border. Speaking at CCRMagazine’s first debate


held in Scotland, in association with Stirling Park, Ronnie Murison, director of sheriff officer services at Stirling Park, said: “Legislation in enforcement has changed radically since the Millennium, and sheriff officers have had to adapt to these changes. “More creditors carry out due diligence


before embarking on litigation, to establish a propensity to recover the debt, based upon the debtor’s circumstances and asset position. Sheriff officers are hugely investigative in their duties and they will be proactive in ascertaining information at every stage, which will allow the creditor, or agent, to make a more informed decision on any further enforcement. Sometimes the lack of information is a challenge, and this can impinge on a successful outcome. Mr Murison explained: “A full review of


diligence was carried out in late 2016, by the Accountant in Bankruptcy. There is an optimism of positive changes afoot, including the likely introduction of ‘information disclosure’ which will then bring the debtor in front of the court to obtain information that would facilitate diligence with stringent processes for non-compliance,” he added. “Earnings arrestment is by far the most


effective diligence, and the ability to obtain employment information will lead to more successful recoveries. The decree authorises service of earnings arrestment without further application to court, and set deductions are made, based upon net


earnings, which can lead to healthy monthly payments, making the diligence more attractive in Scotland. Whereas in England and Wales the court will determine the deduction based upon income and expenditure after an application process.” Jamie Mathewson, business development


director for Stirling Park, added: “Many of our English counterparts are of the opinion that the Scottish litigation system is a mystery, a minefield of time constraints and, in particular, very costly. In reality, it is, for the most part, a straightforward process, without the requirement for pre-action protocols, and with lower court fees and solicitors costs making it far from expensive, certainly in comparison to the same costs in the system in England and Wales. “Yes, litigation has undergone some


prevalent changes recently, with the introduction of the Simple Procedure replacing the small claims and summary- cause procedures from 28 November 2016, to provide an inexpensive and informal way


It is coming. 8 www.CCRMagazine.com April 2018


to resolve disputes where the monetary value does not exceed £5,000. “It has not been without its problems, in


bedding in throughout our extensive court system, but we are, now, starting to see the light at the end of the tunnel in that regard. “There has also been much made of the


administrative burden, however, that falls primarily on our solicitor firms, and not on our clients and creditors. I am confident that what we are starting to see now, at the end of the first quarter of 2018, is a process which works for creditors and clients.” Mr Murison added that, today, diligence


against moveable assets was not relied on as a recovery strategy, and only 1% of diligences executed related to attachments, including money attachments in commercial instances. The abolition of ‘poinding’ and ‘warrant


sale’ in 2002 had changed the approach taken in consumer cases, and the focus was now more on arresting earnings or bank accounts, and inhibiting property, to some extent.


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