In Focus Consumer Credit Stepping up
The story of the lifting of the lockdown in civil enforcement
Russell Hamblin-Boone Chief executive officer, CIVEA
ceo@civea.co.uk
Enforcement is a last resort after local authorities have taken someone to court for non-payment of fines or taxes. Civil enforcement is a function of the social justice system and is not to be confused with debt collection, which is a function of local government. Half of enforcement cases are collected
successfully without the need for an agent to visit a poperty. Less than 1% of enforcement involves the removal of goods. Debt recovered by civil enforcement firms accounts for around 5% of council revenue. Enforcement is complex, highly specialised and essential work to recover revenue due to local government. Our members already operate to an
independently-monitored code of practice and are audited to ensure compliance. We always aim to be proactive and anticipate risk to our sector.
Before the lockdown When the coronavirus pandemic reached the UK and began cause concern, we published
best practice guidance to enforcement agents on how to protect themselves and the public while carrying out their duties. The guidance covered good practice for employers and how to support staff working at home. It provided advice on mitigating the risks faced by enforcement agents in the field. It instructed agents on how to respond to the increase in vulnerable people that were affected by the pandemic. It advised local councils, who are clients of enforcement agencies, about operational resilience. On 26 March we wrote to the Ministry
of Justice to confirm that all our members had suspended enforcement visits on or before that date. This suspension has been rigorously and consistently adhered to by all members without exception. All other activity, such as issuing of Notices of Enforcement, reminder letters, and outbound calls was reduced. In common with many trades and services,
the impact of the COVID19 crisis has been significant on the enforcement sector. Members have recorded a reduction in debt
On 26 March we wrote to the Ministry of Justice to confirm that all our members had suspended enforcement visits on or before that date. This suspension has been rigorously and consistently adhered to
(predominately outstanding Council Tax, Commercial Rent, and unpaid penalties) returned to councils and other creditors, such as HMRC, HMCTS, Transport for London, and Highways England. This has resulted in a drop in income to firms of between 70% and 90%. While this is catastrophic to the public
purse, members are fully aware that the suspension of enforcement visits was absolutely the correct course of action, which supports the government’s guidance on minimising the spread of the virus and providing those most impacted with the appropriate support and breathing space.
During the lockdown During the lockdown I am pleased and proud to report that members actively sought out opportunities to get involved in voluntary work to support the NHS, local and central government. Enforcement firms have redirected their resources to help their local communities and charities providing services to the most vulnerable in society. Across England and Wales employed and self-employed enforcement agents have volunteered
July 2020
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