The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round-up includes updated DRO guidance for mobile phone contracts and recording of CCJs, an IMA workloads and wellbeing survey, further consultation on enforcement agent fees, and updated 'Help with Fees' scheme thresholds.
Updated DRO guidance for mobile phone contracts
The DRO Team has issued a Special Bulletin (October 2023) with updated guidance for mobile phone debts being listed in the DRO application. The Special Bulletin states:
Mobile phone contracts
Handsets
Mobile phones are allowable expenditure under ‘Communications and Leisure’ and that includes both Airtime and Handset.
Any remaining balance on the contract, for either or both items, need not be included as a debt in the list of Creditors.
This will avoid the risk of termination of the contract by the provider, which may cause undue distress to the applicant if they wish the service to continue.
Only if payments are in default, should the debt be listed in the application.
In some cases, the handset may be subject to a hire purchase agreement. In these situations, Intermediaries should apply the general hire purchase principles. See hire purchase agreements and conditional sale agreements.
If the handset is not subject to hire purchase, the phone belongs to the debtor and the value of the handset or device should be checked to make sure it does not breach the asset limit.
Intermediaries can apply this rule with immediate effect.
The Special Bulletin should have been sent to all Approved Intermediaries.
The online Debt Relief Orders: Guidance for debt advisers has not yet been updated.
Recording of CCJs on DRO application where creditor details unknown
The DRO Team has previously instructed approved intermediaries not to list the court as the creditor. Their July 2019 issue of DRO News states: “Where a CCJ has been obtained, please don't list the debt under Northampton County Court - the Court will not accept notifications anymore and we will not send them.”
However, more recently, the IMA Bulletin dated 25 August 2023 states:
“The IMA spoke to the Insolvency Service following feedback from a member about difficulties obtaining details of a claimant when listing a CCJ on a DRO application. Intermediaries are required to establish claimant details for these to be listed on a DRO application and this information can usually be obtained by calling or emailing the court. However, members have reported significant delays in getting this information.
The Insolvency Service has advised us that in limited circumstances, where efforts to obtain claimant details have been unsuccessful and delaying the application could be detrimental to the client, the court name and claim number can be listed on the DRO application. The intermediary should then request that the creditor details be amended once established. It would be good practice to send an accompanying email to the DRO Unit at the time of submission with an explanation. It should be noted that the DRO Team only has discretion to make this amendment during the moratorium period."
IMA Workloads and wellbeing member survey – now open
The IMA has launched its latest survey on debt adviser workloads and wellbeing. This follows its 2020 workloads and wellbeing survey. The survey will allow the IMA to measure the impact of the changes that have taken place so far, as well as identify further opportunities for improvement.
The survey is open to all IMA members whether:
in a MaPS-funded environment or not
employment is on a paid or voluntary basis
debt advice makes up part or all of the role
The survey should take about 20 minutes to complete and will close on 20 November 2023.
IMA Workloads and wellbeing member survey
IMA live online event (for non-IMA members)
From the IMA:
'Have you heard of the Institute of Money Advisers but not sure what we do? Then why not join our live online event from 12pm to 12.30pm on 20 November and learn what we can offer you and your team?
We offer training and memberships for debt advisers, helping individuals and teams to develop skills and improve outcomes for clients.
As a thank you for attending the event, we’ll deliver a complimentary copy of our popular money advice journal, Quarterly Account, right to your doorstep.
Plus, we’ll give you, or a member of your team, free access to one of our technical webinar recordings led by one of our expert trainers!
Full IMA member benefits include:
a free subscription to our money advice journal Quarterly Account
six FREE CPD-eligible webinars each year
heavily discounted IMA training
exclusive access to the IMA's Certificate in Money Advice Practice, delivered in partnership with Staffordshire University and accredited by the Money and Pensions Service
a CPD scheme for those who complete the Certificate in Money Advice Practice
Come along to find out about our most popular services and hear from existing members.'
United Utilities Trust Fund introduces a maximum award
The United Utilities Trust Fund has introduced a maximum award of £1,000 for water grants due to an increase in the number of successful applications to the Trust Fund. The new maximum grant level is effective immediately and will be reviewed regularly.
Review and further consultation on enforcement agent fees
The Ministry of Justice (MoJ) has published a review of the Taking Control of Goods (Fees) Regulations 2014. The review was carried out to establish whether the original 2014 fees remain appropriate and to explore ways of encouraging the settlement of debt at the earliest stage possible.
The MoJ intends to amend the Schedule to the Fees Regulations in relation to Regulation 4 to:
increase the fixed fees by 5% for both High Court and non-High Court fees
increase the thresholds above which a percentage fee can be added to certain fees by 24% to £1,900 for non-High Court cases and £1,200 for High Court cases
The MoJ has now published a consultation seeking views on further reforms, which include:
extending the minimum period of notice from 7 days’ notice to 28 days’ notice before enforcement agents can visit a residential property
amending the Notice of Enforcement to signpost debtors for advice and encourage engagement with enforcement agents
Planned reforms include clarifying that High Court enforcement officers can agree to repayment plans at the Compliance Stage, making it clearer when the fee for Enforcement Stage 2 can be recovered, and requiring the non-High Court fee scale to be used for ‘low value’ High Court Writs.
The consultation closes on 4 December 2023.
Following the conclusion of this consultation, the MoJ intends to implement the uplifts and potential reforms via a Statutory Instrument by the end of 2023.
Taking control of goods regulations consultation
Review of the Taking Control of Goods (Fees) Regulations 2014
Enforcement Conduct Board register of accredited firms – now live
The Enforcement Conduct Board (ECB) has announced the publication of its online register of accredited firms. There are currently 40 enforcement agent firms signed up. The ECB aims to create accountability and drive good practice within the enforcement sector. The ECB says creditors that use the register will be able to ensure that they are contracting with accredited firms.
First-year accreditation criteria are to:
comply with the current Ministry of Justice National Standards
provide the ECB with Quarterly Data Returns
provide information to the ECB on request
make payment of a levy which funds independent oversight by the ECB
Enforcement Conduct Board research into body-worn video
The ECB has confirmed their intention to analyse a large sample of Body Worn Video (BWV) of doorstep interaction. At its October board meeting, draft areas for assessment were discussed. These areas are:
misrepresentation of powers
threatening or intimidating behaviour by the enforcement agent
threatening or intimidating behaviour towards the enforcement agent
clear failures to respond to vulnerability
other breaches of the National Standards
The ECB states that the research project will help it to establish its overall approach to oversight including highlighting areas of concerns, themes, and trends.
The ECB aims to publish the research findings at some point in 2024.
Enforcement Conduct Board October 2023 meeting
Civil Justice Council review of the Pre-Action Protocols
The Civil Justice Council (CJC) published a comprehensive report of its review of existing Pre-Action Protocols (PAPs). One of the recommendations is the creation of a ‘General PAP’ to replace the existing Practice Direction Pre-Action Protocol. The CJC noted that whilst the current PD Pre-Action Protocol is valuable in some respects, it was ‘too woolly’ to be a practice guide to pre-action conduct.
The principles of the General PAP are that:
starting court proceedings should be a last resort
there must be an early exchange of relevant information
the parties should behave reasonably and proportionately
the parties must actively cooperate with each other to achieve the overriding objective
the parties should take reasonable steps to try to resolve or narrow their dispute
Other key conclusions and recommendations include:
a new PAP should be created for lower value claims worth £500 or less
the overriding objective and individual PAPs should be amended to include express reference to the need to comply with, and enforce, PAPs, and the obligation for parties to co-operate
there should be clearer processes and guidance for raising and resolving disputes about compliance with PAPs
CJC Review of Pre-Action Protocols Final Report Part I August 2023
Help with Fees scheme – increased thresholds
Following the ‘Help with Fees’ consultation that ended on 30 May 2023, the capital and income limits for fee remission will be increased from 27 November 2023. The revisions include:
raising the gross monthly thresholds used to assess fee remission eligibility
reducing the number of income payments included in the income calculation, such as Universal Credit advance payments
maintaining a list of ‘passporting benefits’ to automatically pass the income test
increasing the amount of disposable capital an applicant can have and remain eligible for fee remission
The Courts and Tribunals (Fee Remissions and Miscellaneous Amendments) Order 2023
Case law
Find debt case law summaries by topic on Shelter Legal.
Landlord's bankruptcy petition dismissed
The High Court dismissed a bankruptcy petition for a rent debt because the landlord had not given an address for services of notices in England and Wales.
Debtor to draw down a pension to satisfy a judgment debt
When the court could consider allowing a creditor to enforce a judgment debt against the debtor's pension.
Tenant's rights when a landlord is made bankrupt
A trustee in bankruptcy must deal with a rented property if the landlord is made bankrupt due to unpaid debts.
Read more about a tenant's rights when their landlord is bankrupt on Shelter Legal.