Enforcement fees explained
What are enforcement fees?
Enforcement fees are additional charges charged by enforcement agencies or agents to cover the costs associated with the collection of debts. These fees are set out by the Courts, not the enforcement company, and they adhere to The Taking Control of Goods (Fees) Regulations 2014 and Tribunal Courts and Enforcement Act 2007.
Enforcement fees are added on top of the original debt amount and can vary depending on the nature of the debt, the enforcement action taken. All of our fees are detailed on our written correspondence to debtors.
Below lists the three enforcement fees that can be added to a debt, in the order in which they will be applied, at each stage of the enforcement process. These fees are added to every debt that we hold for an individual.
Note: This fee structure is only true for enforceable debts such as council tax arrears, business rates arrears, and road traffic debts.
Breakdown of enforcement fee by stage
Stage 1: Notice of Enforcement (£75.00)
When we receive a debt from our client, we issue a Notice of Enforcement to the debtor. Once this is sent, a £75 compliance fee is automatically added to the account for on each case/debt that we receive.
The Notice of enforcement, provides at least 7 working days to make payment or to discuss the account before it is automatically passed one of our Enforcement Agents to recover.
Stage 2: Enforcement visit fee (£235.00)
£235.00 is added to the debt he moment the Enforcement Agent visits the property to collect payment.
An account will be passed to an Enforcement Agent for a visit if the debtor fails to contact us with an acceptable payment arrangement or make payment in full. This also includes missing a payment that was agreed upon as part of the arrangement.
Once an Enforcement Agent visits, the debt has now accumulated £310.00 in fees (£75.00 +£235.00). The Enforcement Fee will only be added to a debt once, and not every time an Enforcement Agent visits thereafter.
Note: For larger balances (debts over £1500) or multiple cases please note an additional fee of 7.5% of the debt over £1,500 is charged on top of the £235.00.
Stage 3: Sale and disposal fee (£110.00)
If a payment arrangement is agreed, the debtor must signed a document listing their belongings called a 'controlled goods agreement.' If the debtor doesn't stick to the plan, an Enforcement Agent may re-visit to collect and sell the items listed on that agreement to cover what is owe.
£110.00 is added to the account if an Enforcement Agent visits to remove the goods listed on the agreement.
At this stage you £420.00 will have been added to the amount that is owed. (£75.00 +£235.00 +£110.00).
Note: For larger balances and multiple cases an additional fee of 7.5% of the debt over £1,500 is charged on top of the £110.00. This means, that the fees added to your account will increase to more than £420.