There is not one straight route in debt collection, and for businesses, collecting outstanding payments and invoices can take several processes and include a mix of debt collection services.
One such service is the use of high court enforcement.
High court enforcement officers in these instances are employed to collect on high court writs, which can include County Court Judgements, high court judgements, and high court possession orders.
Below, we explore high court enforcement in more detail and look at what it is and the processes involved.
High Court Enforcement Explained
High court enforcement officers can also be known as bailiffs, as the courts will instruct these individuals to collect outstanding debts.
HCEOs can and will visit an individual’s or business’s property to chase outstanding amounts, and they can remove goods to the value of the debt to sell at auction to repay the amount owed.
Assets that can be seized can include vehicles, equipment, jewellery, stock, etc. – seized to the value of the debt plus 8% (interest), court fees, and enforcement costs.
Note: HCEOs can only seize goods that belong to the debtor, and they can’t seize personal goods such as tools of the trade, goods belonging to other people, goods on hire purchase agreements, leases, or rentals, and goods that another party has already seized.
A writ of control from high court enforcement will affect credit ratings and will remain on file for a period of six years.
When can you use a high court enforcement officer?
A high court enforcement officer can be used when:
- A company or individual has a CCJ against them, and they have failed to make the court-agreed payments, breaching the terms of their county court judgement.
- The debt is over the value of £600.
- Debts do not fall under the regulation of the Consumer Credit Act, i.e., HCEOs can help to collect outstanding business invoices/debts, utility arrears, old rent arrears, and even tribunal awards.
What can high court enforcement officers not do?
- HCEOs cannot enforce consumer debts, i.e., personal loans and credit card debts/arrears. Consumer debts also include overdrafts and even pay loans.
- HCEOs can’t push past people to force entry, block or prevent the door from closing, or gain access through any open windows. However, they can force entry to seize goods IF they have been to a property before and goods have been listed as part of the controlled goods agreement.
Note: For commercial premises, high court enforcement officers can force entry if they have secured a warrant and will re-secure the premises to the same standard upon their departure.
Advantages of using High Court Enforcement
- You can add interest (8%) to the outstanding amount.
- The HCEO fees are added to the outstanding debt.
- Professional HCEOs have a high collection success rate.
- HCEO can be more effective and provide a quicker turnaround on collection.
Starting the Process of High Court Enforcement
If high court enforcement is the best process for your commercial debt recovery, as the creditor, you will need to apply for a writ of control (which is valid for 12 months). This will put in place an enforcement letter, which will be issued to the debtor, stating when a high court enforcement officer will call. Typically, seven days’ notice will be provided.
The HCEO will then visit the property to request payment of the debt in full. If this is not possible, payment plans will be discussed alongside listing items that could be sold at auction to repay the debt.
If a payment plan is agreed upon, items will not be removed; however, if an instalment is missed, the HCEO has the right to seize the goods – this is part of the controlled goods agreement that has been drawn up at the initial visit.
All of this information and agreements and payment plans will be documented with both the debtor and the creditor receiving copies of the paperwork (it is essential that such paperwork is kept if the debt proceeds to court).
As a Debtor
It’s important that you always repay your debts on time, every time, and ensure that all invoices are paid and up to date as part of robust credit control procedures.
If you are struggling to repay debts, you should contact your creditor as soon as possible about the situation to see if a payment plan can be set up.
You can also apply to the courts for what is termed “breathing space,” which has conditions that must be met.
Ignoring the situation is not the best solution.
Commercial Collection Agency
At Direct Route, we help with all debt collection services, from supporting your credit control teams with processes and procedures to collecting outstanding debts and invoices on your behalf.
With more and more businesses choosing to work with us to support commercial debt recovery, what are you waiting for?
Call +447860 197476 today or email us at memberbenefits@directroute.co.uk to see how we can help you.