IRRV Alert - week ending 29th January 2010

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Consultation on new fees delayed

 

 

 

 

The Ministry of Justice’s consultation on enforcement fees is now not expected to be out until after the general election, Credit Today can reveal.

While the fees element of the document is thought to be ready, the sections on regulation from the Tribunals Courts and Enforcement Act are understood to need further work before publication.

There will not be time to consult before an election is called. However, the consultation is expected to go ahead later this year.

The industry has been heavily critical about the prolonged uncertainty regarding fees within the enforcement sector. But sources close to the situation have said that they are optimistic that they are close to a consensus between the government and industry on the fee structures.

A Ministry of Justice spokesperson said: "Last year the justice secretary, Jack Straw, asked for a reassessment of the enforcement provisions within the Tribunals, Courts and Enforcement Act 2007 to ensure that they remain appropriate.

"Following that review, the government announced on 17 March 2009 that it would implement the provisions in Part Three of the Act whilst not extending bailiffs’ powers of entry and the use of force by enforcement agents, and the introduction of a new fee structure."

He added: "As part of the implementation process a pre consultation exercise, conducted during November and December 2009, sought views from the enforcement industry, other government departments and the advice sector on draft regulations on the taking control of goods. Consideration has also been given to a proposed fee structure."

He explained that following analysis of the responses on the draft regulations, some redrafting and further consideration will be necessary.

He added: "This will affect the commencement of the consultation process. However, it remains our intention to publicly consult in 2010 with a view to implementing the changes in April 2012."

Currently bailiff fees are based on an archaic model that dates from a time when bailiffs were expected to seize, impound and remove goods.

However confusion about enforcement fees and the levels that they charge has led to uncertainty and a rise in complaints. It is hoped that if fees become more transparent and predictable, more people will pay when a court order is obtained.


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