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 details on breathing space service delivery, cryptocurrency Bill, reports on joint mortgages and public sector debt collection respectively, and a call for research participants.
Mental Health Crisis Moratorium service delivery
The Mental Health Crisis Moratorium (MHCM) service will be delivered in partnership by Toynbee Hall, We Are Group and Kaleidoscope from January 2025. This follows an open tendering process by the Money and Pensions Service. Rethink is currently delivering the MHCM scheme.
New Bill introduced to confirm legal status of digital holdings
The Ministry of Justice (MoJ) has announced that the Property (Digital Assets Etc.) Bill has been introduced in Parliament. If the Bill is passed, ‘digital holdings’ will be considered as personal property under English and Welsh law. Digital holdings include cryptocurrency, non-fungible tokens such as digital art, and carbon credits.
The Bill would allow for certain digital assets to attract personal property rights in a third category of property. Currently there are two categories of property: ‘things in possession’ such as gold and money, and ‘things in action’ such as debts and shares.
Property (Digital Assets Etc.) Bill
Report on joint mortgages with perpetrators of domestic abuse
Surviving Economic Abuse (SEA) has launched a report on how perpetrators use joint mortgages as a form of economic abuse. SEA is calling on the government to strengthen the law and to set up a taskforce to prevent abusers from using joint mortgages as a form of ‘economic exploitation, sabotage and restriction’.
SEA ‘Locked into a mortgage, locked out of my home’ report
Report on government debt collection practices and mental health
The Money and Mental Health Policy Institute (MMHPI) has launched a report that focuses on the psychological harms caused by government debt collection. The report looks at the scale of the problem, and the different stages and impact of debt collection.
The MMPHI is urging the government to change the regulations on councils’ collection practices and calling on public sector creditors to raise the standards for debt collection across the board.
MMHPI ‘In the Public Interest?’ report
Research participants needed into debts that low-income households owe to the state
Daniel Woodward is a PhD Researcher in the Department of Sociology at the University of Warwick. Daniel is seeking participants to help him with his research into the debts that households on low-income often owe to the state. Please see his request below.
“My name is Daniel Woodward, I’m a PhD researcher based in the Department of Sociology at the University of Warwick where I am currently conducting research into the debts that households on low-income often owe to the state. In particular, my research focuses on the impact that benefit-related debts (e.g. overpayments, advances, etc.) and council tax debts are having on people’s ability to ‘get by’ and cover the cost of living, their use of consumer credit, and their interactions with the job market. In order to do this, I am hoping to make contact with debt advice, benefit advice, and legal advice organisations in England that are able to assist with the recruitment of participants for this study.
In particular, I hope to recruit participants in the following two categories:
Unemployed and underemployed (i.e. involuntarily part-time) people that owe, or in the past ten years have owed, either council tax debts and/or benefit-related debts (or persons that were previously unemployed/underemployed at the time when they owed these debts-to-government).
Debt and/or welfare advisors with experience assisting clients that owe council tax debts and/or benefit-related debts.
This research has received ethics approval from the University of Warwick, and interviews will take place from November and continue throughout 2025.
If you believe you that are able to assist with this research, whether by participating yourself or by assisting with recruitment of indebted clients, please contact me at daniel.woodward@warwick.ac.uk”
Case law
Find debt case law summaries by topic on Shelter Legal.
When cause of action accrues
The cause of action for limitation purposes accrues when the work is done or the services are provided, not when a bill is given.
Consulting Concepts International Inc v Consumer Protection Association [2022] EWCA Civ 1699
Damages to debtor after enforcement agent breach
A judgment creditor can be ordered to pay damages for losses suffered by the debtor as a result of breaches by an enforcement agent when taking control of goods.
Burton v Ministry of Justice [2024] EWCA Civ 681
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