Take final responsibility for actions of bailiffs, LGO tells councils

Councils must take final responsibility for the actions of bailiffs they instruct, the Local Government Ombudsman has said.

In a report, Taking possession: Councils’ use of bailiffs for local debt collection, the LGO also urges local authorities to consider a number of questions when asking bailiffs to deal with potentially vulnerable debtors, and to improve their complaints handling.

The report says: “We appreciate that bailiffs do a difficult and unpopular job, and there are problems with the law as it now stands. We are also clear that if people do not pay their local taxation debts and road traffic penalties they risk recovery action.

“But when debtors are also under financial pressure it is important that debt recovery action is reasonable, legal and proportionate.”

The Ombudsman says a range of issues emerged from its analysis of complaints received about bailiff action on behalf of councils.

It cites a number of issues that have led to serious injustice, such as bailiffs making multiple charges without explaining what they are for.

The LGO reported that in one case, a debtor was charged three fees amounting to £405 without any explanation.

“When the LGO got an explanation of the charges from the council involved, they found the debtor had been overcharged by £300 plus VAT,” the Ombudsman said.

Another problem area identified by the Ombudsman surrounds the charging of a ‘van fee’, which bailiffs can apply when they attend a property with a vehicle with a view to removing goods. On one occasion, the LGO reported, a bailiff charged a ‘van fee’ when they had not entered a property or removed any goods.

A third issue surrounds bailiffs taking ‘walking possession’ of goods (as they can be entitled to do) and adding costs for this. ‘Walking possession’ is where goods are left on the debtor’s premises after the debtor agrees to make payments on the outstanding debt or while a query is resolved.

The Ombudsman warned that this could be unreasonable, highlighting one case where a bailiff took walking possession of a doormat and charged costs of £230.

The LGO report makes a series of recommendations. These are that councils should ensure that bailiffs:

  • only charge costs and fees in the schedules to the regulations;
  • give details of costs and fees referring to the specific headings in the relevant schedule, or make clear why an alternative sum has been charged;
  • agree with councils in advance any areas of possible dispute over interpretation of the cost and fee;
  • make proper checks when levying on vehicles, especially when enforcing costs and fees;
  • exercise caution when dealing with potentially vulnerable debtors and consider whether recovery action is appropriate; and
  • handle any complaints received quickly and clearly, with the council taking final responsibility for its bailiff’s actions.

The report says Citizens Advice had expressed concerns to the LGO about the actions of bailiffs, in particular in relation to the level of charges they make and their behaviour towards vulnerable people.

According to the LGO, questions that should be addressed where a bailiff or other officer comes across a debtor who may be vulnerable are:

  • Does the debtor fall into one of the groups the bailiff considers may be particularly vulnerable?
  • If so, is the ‘vulnerability’ such that the debtor may be incapable of understanding or defending themselves properly from any proceedings?
  • Even if the debtor can understand the proceedings, do their particular circumstances mean that recovery action at this point would be inappropriate – even if they are not ‘vulnerable’?

“If uncertain, the bailiff should withdraw and check with the council to see how they wish to continue,” the report says.

On dealings with vulnerable debtors, Dr Jane Martin, Ombudsman and Chair of the LGO said: “Sometimes a bailiff may be the first person acting on behalf of the council to meet the debtor. The bailiff may be the first person to realise the debtor is vulnerable. It is essential that bailiffs are alert to possible vulnerability and that they report any concerns back to the council.”

A copy of the report can be viewed here.