Crawley MP, Henry Smith, has welcomed the news that the Government will be changing the law to give vulnerable people stronger protection from aggressive bailiffs.
Under new laws to clean up the industry, bailiffs will be banned from entering homes when only children are present and at night. New safeguards will prevent bailiffs from using force against people who owe money and they will also no longer have free reign to fix their own fees, as new set costs are brought in.
Until now there has been insufficient legal protection against aggressive bailiffs. These new laws, and a mandatory training and certification scheme which they must pass before going into business, will change that. Businesses will still be able to collect debts fairly, but bailiffs who do not follow the rules will be barred from the industry.
Commenting, Henry said:
“At the moment there’s very little to stop unscrupulous bailiffs from abusing their position and making life a misery for vulnerable people in Crawley. It’s terribly stressful to find yourself in debt and the last thing people in that situation need is harassment from debt collectors.
“We need a system which allows the majority of responsible bailiffs to get on with doing their jobs fairly, but which stops abuse and gives real protection. That’s exactly what these changes will create.
“Today’s announcement comes ahead of other measures introduced by the Government last year, following my long running campaign, to crack down on irresponsible private parking firms. Slowly but surely this Government is making the right decisions to protect vulnerable people across our town from the aggressive and irresponsible behaviour of a minority of rogue operators in varying commercial fields.”
Conservative Justice Minister, Helen Grant MP, added:
“For too long bailiffs have gone unregulated, allowing a small minority to give the industry a bad name. Too many people in debt have had the additional stress of dealing with aggressive bailiffs who often charge extortionate fees.
“These new laws will clean up the industry and ensure bailiffs play by the rules or face being prevented from practising. They will also make sure businesses and public bodies can collect their debts fairly.”
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Notes
· New rules for the bailiff industry announced. On 25 January 2013, Justice Minister Helen Grant announced new laws to clean up the bailiff industry. New laws will provide a sound regulatory regime to clean up the debt collection industry. It was announced that:
o The law would be changed to ban the use of force against debtors and stop bailiffs entering homes when only children are present.
o Bailiffs would be banned from visiting debtors at night – they will only be allowed to enter between 6am and 9pm.
o A simple set of rules and fees would be legislated for detailing when a bailiff can enter a property, what goods they can take and a fee structure which will end excessive and multiple fees.
o Vulnerable people will get assistance and advice and train bailiffs to recognise them.
o Landlords would be banned from using bailiffs to seize property for residential rent arrears without going to court (Ministry of Justice Press Release, 25 January 2013, link).
· Creating a straight-forward system for complaints. The Ministry of Justice will work to develop a clear route for complaints so people who feel they have been treated unfairly can get appropriate redress (ibid.).
· Proper training and standards for bailiffs. Building on existing training already under development, the Ministry of Justice will develop a mandatory training regime and appropriate professional standards for bailiffs (ibid.).
· Ensuring everyone knows their rights and responsibilities Creditors and bailiffs have a duty of care to the vulnerable. The Ministry of Justice will work with all the key groups involved in debt collection, including the advice sector, local authorities and across the government to make sure vulnerable situations can be identified. The public will get better information and guidance (ibid.).