The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
In this month's legal round-up, find details on enforcement agent reforms, revised guidance for IVA providers, and a new economic abuse toolkit.
Ministry of Justice response to enforcement agent reforms
The Ministry of Justice (MoJ) has published its response to its call for evidence about the 2014 regulations on the enforcement of debts and fines by enforcement agents.
Amongst other things, the MoJ seeks to:
make it mandatory for enforcement agents to use body-worn cameras
undertake a fundamental review of the Taking Control of Goods (Fees) Regulations 2014
develop new affordability and vulnerability protocols as suggested by the Enforcement Conduct Board (ECB)
ensure there is a strong complaints process through the ECB
The MoJ supports the work of the ECB and will aim to review the ECB within two years.
Review of enforcement agent (bailiff) reforms: consultation outcome
Enforcement agent fee review
Following its review of enforcement agent reforms, the Ministry of Justice has published a consultation seeking views on what fees enforcement agents can recover.
The review considers whether:
more can be done to encourage early payment
the fees remain set at an appropriate level
to review the fee charged for Enforcement Stage 2 of the High Court Enforcement fee scale
to review the impact of the Fees Regulations on creditors
The deadline to submit responses is 20 February 2023. Please email bailiffreview@justice.gov.uk to request a copy of the questionnaire.
Enforcement Agent (Bailiff) Fee Review 2023
Ombudsman News
The Financial Ombudsman has published Ombudsman News Issue 177.
Updates include new guidance explaining its approach to complaints about financial difficulties in relation to mortgage debt. The guidance covers how complaints are handled and includes case studies.
Previous Ombudsman News editions
Revised SIP 3.1 guidance for IVA providers
The Insolvency Service has published a revised Statement of Insolvency Practice (SIP) 3.1, which will apply from 1 March 2023.
Changes include ensuring that the debtor:
has received suitable advice prior to entering an IVA
is aware of all potential debt relief solutions available before entering into an IVA
is given adequate time to consider the drafted IVA proposal
The Insolvency Service has also updated its guidance to the Recognised Professional Bodies, such as the Insolvency Practitioners Association, on monitoring volume IVA providers.
Monitoring Volume Individual Voluntary Arrangement providers
Government Economic Abuse Toolkit
The Cabinet Office has published a new Economic Abuse Toolkit to assist public sector bodies who are recovering debt. It aims to help them identify and support people experiencing economic abuse.
Transfer of work from County Court Money Claims Centre
The County Court Money Claims Centre (CCMCC) has issued an email update to stakeholders regarding the transfer of work from CCMCC Salford to the County Court Business Centre (CCBC) in Northampton.
As of December 2022, the CCMCC has moved:
charging orders
attachment of earnings
low value road traffic accidents
judicial orders
help with fees (retrospective applications and refunds)
help with fees appeals
customer complaint handling and reasonable adjustments
warrants of control
The next move will be completed by 30 January 2023, which will include:
new claims issued
amended claims (out of jurisdiction claims and Welsh claims)
help with fees applications accompanied by a new or amended claim
Defences and Directions Questionnaires will be moved from early February 2023.
Case law
Find debt case law summaries by topic on Shelter Legal.
Permission to enforce during a mental health crisis moratorium
The High Court granted a creditor's application for permission to enforce a third party debt order during a mental health crisis moratorium.
Brake and another v Guy and others
Time orders
A time order allows the court to reduce contractual monthly mortgage payments or extend the term of the loan when a mortgage lender has started possession action.
Our new content includes information about which mortgages are eligible for a time order, how to ask the court for a time order, and the process and costs involved.
Read Time orders in mortgage arrears possession cases on Shelter Legal.