Lessons on the road with enforcement agents.

Lessons on the road with enforcement agents.

CIVEA CEO, Russell Hamblin-Boone reflects on time with enforcement agents at work.

There are a minority of people who have direct experience of the enforcement process and many more people who hold strong opinions about what enforcement entails but have no sound knowledge . The only way to truly understand the work of an enforcement agent is to spend a day in his or her shoes.

I have been around the country shadowing enforcement agents carrying out their duties.

Most people’s image of an enforcement agent (still known as a bailiff to many) is a burly guy entering houses and leaving with an armful of appliances. In reality, the majority of government debt recovered by the civil enforcement process is collected without a physical visit to a home or business.

In less than one per cent of cases where goods need to be removed, they mostly involve vehicles. The men and women that make the field force are from a range of backgrounds and careers, and all are professionals and proud of their work.

Enforcement agents provide a community service that is often goes unrecognised. Speaking to enforcement agents they will tell you that their job is ensuring that councils can fund waste collection, road repairs, parks and libraries, social care for older people, children and vulnerable people.

Without money from unpaid debts, these services could be reduced or even scrapped.

In their day-to-day work, enforcement agents are also trained to spot signs of modern slavery, loan sharking and people trafficking. Of the 700,000 unregistered vehicles in the UK over half were recovered by enforcement agents and were found to be unroadworthy and dangerous.

There are over 6.5 million untaxed vehicles in the UK and £120 million is lost revenue to the DVLA as a result of untaxed vehicles.

An enforcement visit is an essential part of the process that the public sector employs to collect its debt. Unlike financial services and credit providers or utilities, there is no option for councils to choose their customers and for most debts there is no interest charged. Equally, debtors cannot switch council and carry over their debt, like they can with utilities and banks.

Therefore, local authorities, His Majesty’s Courts and Tribunals Service, Transport for London, Highways England and other public sector bodies have limited options to recover taxes, penalties and fines. Many cases ultimately end up in the courts and enforcement agents are appointed to recover the money at no cost to the public purse.

Having been out with enforcement agents before the pandemic, it is interesting to note the changes. Enforcement agents are not only using more advanced technology, but they are required to identify more ways that people can be vulnerable and respond accordingly.

Enforcement agents are on our streets in cities, towns and villages every day. But they work so discreetly that, apart from the regular non-payers who are familiar with agents, most people do not know they are there.

It’s only when you speak to the agents and learn about their work does it become clear how they are a barometer for society and its behaviour.

Our agents have observed the changes in attitudes since the pandemic and know how people have been affected by the cost-of-living crisis. A feature of this change is the circumstances of people that are facing enforcement action.

Whereas prior to the pandemic, the debate had become polarised by assumptions that people with debts to local authorities fall into either the categories of can’t pay or won’t pay, the cost-of-living crisis has spawned a new category of debtor – don’t pays.

Don’t pays have means and are not evading payment but don’t want to pay right now. Don’t pays know that missing payment on debts to government will not impact their credit score, so they prioritise other non-priority debts and payments that could affect their creditworthiness.

They often don’t understand that debts to government are priority debts because of the severity of the consequences of non-payment.

Don’t pays often worry about paying their mobile or broadband bills or credit cards, under pressure from creditors or debt collection agencies, without realising that these should be paid second to priority debts along with mortgages, rent, gas and electricity bills.

Don’t pays may have vulnerability triggers but can still pay their debts with appropriate support and guidance.

While enforcement agents do not set out to pursue vulnerable people who have no means of paying their debts, increasingly, they are encountering incidents of vulnerability of some form.

Enforcement agencies are reporting that the demographic is changing with people who have never been in debt and who have regular employment now struggling with their finances and who, when they prioritise household bills and credit cards payments, are overlooking penalties and fines.

Time spent with enforcement agents that have years of experience shows that the key to debt resolution is communication. Enforcement agencies work hard to maintain an ongoing dialogue and engage debtors in a way that meets their requirements and avoids missed payments.

Once identified, don’t pays can be set up with repayment plans and moved to become “can pays”. For example, don’t pays may have poor financial capability or have chaotic financial management.

Another emerging scenario that is common to many enforcement visits is young, single mothers abandoned by their partners. Often these young women have had full-time employment and were managing financially.

That is until the relationship breaks up, most likely because they have a baby, and the mother is left with a motor finance, TV and other goods on credit agreements taken out in their name. This is on top of the rent, council tax and household bills.

With a baby they can only work part-time, but only if they are fortunate enough to have family to help with childcare. This situation is seen across all parts of the country and in all types of neighbourhoods, not just areas of deprivation. These young mothers also fall into the don’t pay category where they are juggling priorities.

I will be sharing these observations with the government which needs to understand more about how the cost of living is impacting people. It would be nice to think that politicians could set aside their prejudice and preconceived ideas of our enforcement sector, and recognise the huge contribution enforcement agents make to the economy and our welfare.

Real life examples of don’t pays (anonymised for privacy)

Michelle is a single parent with a primary school age daughter. She has ADHD. Her partner left her with rent and bills to pay, a wide-screen TV on finance and a large dog. She is waiting for a financial services company to confirm that her previous employer has sent references so that she can start a new job. In the meantime, she has missed council tax bill payments. EA suspended action and agreed that Michelle will call after she, Michelle, has started work to arrange payment.

Natalie has two businesses and is also an agency nurse. She has an 18-month-old son. She was in an abusive relationship, and now her partner has walked out. He left her with the rent and bills to pay, and a car that she cannot drive because he has stolen the car keys. Her son is looked after by her mother when she is at work, but she is struggling to organise her finances, which has caused her to miss her council tax arrears payments on a property where she previously lived. EA talked through priority debts and agreed a level of repayment. Also referred to debt advice support and notified council of circumstances.

Tom was renting a home with his girlfriend. They are both working, but incurred debts. She has left and he has received a Section 21 notice from his landlord. He has missed payments on his council tax. Spoke with EA to arrange an extended payment plan. Tom offered to make a single payment immediately and asked to make smaller payments over several months.

Peter is a middle-aged man with anxiety issues, so he works at home. He has not paid a Penalty Charge Notice and has told enforcement agents not to visit because it may trigger his mental health problems. EA called in advance to ask if he can visit. Peter agreed and paid his fine in full.

Amy is a victim of domestic abuse and suffers from PTSD. She will not accept visits from an EA and communicates through a neighbour. She has several unpaid Penalty Charge Notices for bus lane interventions. EA called in advance to ask if he can speak to the neighbour, and was instead invited to speak to Amy direct. EA explained situation and agreed lower payments.

Stephen has several Penalty Charge Notices, which he is trying to pay but keeps missing payments because he is paid weekly but not on the same day. This means that he keeps getting chased for payment. EA set up a regular payment plan and advised Stephen to let him know before the payment if he cannot pay. Stephen was grateful for the flexibility.

Helena has a son diagnosed with leukaemia and a husband who has had a mental health breakdown. She is the sole income provider and, while her husband is ill, is responsible for all the finances and running the house. In the chaos of this situation she has missed several council tax payments. EA suspended enforcement and spoke to her about support and referred her to council with details of situation.