Statutory Fee Increase and Extended Compliance Period

Legislation is set to be introduced to Parliament that will significantly impact enforcement processes, including:

• CRAR (Commercial Rent Arrears Recovery)
• High Court Writs
• Liability Orders

These changes are expected to be implemented swiftly, with minimal notice, so stakeholders should prepare now.

Key Changes to Statutory Fees

The proposed legislation includes an uplift in statutory fees of 5% across all enforcement stages.

non-High Court enforcement

• Compliance stage fee will rise from £75 to £79.
• Enforcement stage fee for Attendance will increase from £235 to £247.
• Sale or disposal stage fees will move from £110 to £116.
• The additional fee at enforcement stage and disposal stage of 7.5% for debt over the threshold value remains 7.5%.
• The threshold value increases from £1,500 to £1,900.

High Court enforcement

• Compliance stage will increase from £75 to £79.
• First enforcement stage (ES1) will rise from £190 to £200.
• Second enforcement stage (ES2) will see a more substantial increase from £495 to £520.
• Sale or disposal fees will move from £525 to £550.
• The additional fee at first enforcement stage, second enforcement stage and disposal stage of 7.5% for debt over the threshold value remains 7.5%.
• The threshold value increases from £1,000 to £1,200.

Extended Compliance Periods

Alongside fee increases, compliance periods will be extended across all debt types.

The current 7 clear days will become 14 clear days, giving debtors more time to respond before enforcement action begins.

Furthermore, if a debtor engages a professional debt advisor and applies for assistance, enforcement agents will be required to allow 28 clear days for compliance while advice is sought.

Implications for Creditors and Enforcement Agents

The combination of higher fees and longer compliance periods will have practical and financial implications.

Creditors may experience delays in enforcement outcomes, while enforcement agents will need to adapt operational processes to accommodate extended timelines.

Communication with debtors will become even more critical to avoid unnecessary escalation.

What You Should Do Now

Given the likelihood of rapid implementation, businesses and enforcement professionals should:

1. Review current cases to anticipate potential delays.
2. Update internal policies to reflect new compliance periods.
3. Communicate with clients about the forthcoming fee structure and timelines.
4. Prepare for system updates to ensure accurate fee application.

These changes represent a significant shift in enforcement practice, balancing creditor rights with debtor protections. Staying informed and proactive will be essential to navigate this transition effectively.

Strategic Advice for Landlords

One practical strategy landlords may want to adopt is personal service of the Notice of Enforcement (NOE) at the debtor’s address.

This approach eliminates postal delays and sends a clear message to the tenant or debtor. Typically, this can be arranged within three working days for £150 plus VAT, ensuring compliance starts promptly and reducing the risk of further delay.

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About the author

This article was written by Andrew Coates, Authorised High Court Enforcement Officer and full member of The High Court Enforcement Officers Association, and current CEO of Quality Bailiffs.

Andy has a Level 4 diploma in High Court Enforcement, and over twenty five years of experience in the bailiff and investigation industry. He is a former governing council member of both CIVEA and ABI.

Disclaimer
This article provides general information and does not constitute legal advice. It is essential to consult with a qualified legal professional for advice tailored to your specific circumstances.

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