Bailiffs need more regulation, says report
A charity says the behaviour of some is making things worse for those struggling
The behaviour of some bailiffs is making people's financial struggles worse.
That's according to Citizens Advice, which is calling for stronger regulation of the sector.
The charity says that with high living costs raising the risk of people falling behind on bills, the regulation of bailiff firms should be put on a statutory footing.
A YouGov survey commissioned by Citizens Advice asked people across England and Wales about their experiences with bailiffs.
Nearly half (49%) of those who said they had come into contact with a bailiff said they had experienced long-term financial consequences, such as debts becoming harder to manage, needing to take out more credit and not being able to pay other bills because of bailiff fees.
The charity says almost three in four (72%) saw their mental health affected.
Examples include feeling unsafe in their home, being afraid to answer the door and not wanting to leave their house.
Citizens Advice also raised concerns about some behaviour, such as some bailiffs apparently not taking vulnerabilities such as a disability or illnesses into account or taking goods needed for work reasons.
Case study: bailiff charges £500 for missed payment on £90 debt
The charity highlighted the case of a man, who lives with a partner and has a child who is disabled.
He had a £90 debt from a missed council tax payment and was put on a repayment plan.
The man said he missed a payment on his plan, because his child had been taken to hospital.
He was woken up before 6am by a call from a bailiff, who was outside his home.
The bailiff wanted nearly £500 in extra fees for their visit, Citizens Advice said, otherwise the man's car, which was clamped, could have been removed.
The man told the charity: "In the end, I got someone to come down with a bank card to pay the bailiff through his car window. Once it was paid he got out of his car and removed the clamp.
"I suffer from PTSD and my anxiety kicked in. It was a really bad day for me. I had to pay back the money I had borrowed which left us short, so other bills didn't get paid and we've been left robbing Peter to pay Paul."
More than 5,700 people took part in the survey.
Citizens Advice said it believes that with more people falling into debt and potentially exposed to bailiff action, a voluntary, self-regulation model is no longer able to meet the scale of the issue.
'Rogue behaviour making things worse'
Chief executive of Citizens Advice, Dame Clare Moriarty, said: "Rogue behaviour is making things far worse for people in really difficult situations - sometimes pushing them further into debt.
"Rules are in place to try and ensure bailiffs act fairly to recover debt, but our advisers are hearing from people every day who are being intimidated and harassed by bailiffs breaking these rules.
"This can't be allowed to continue... we need the Government to step up and ensure the industry is held accountable for its actions through a statutory regulatory body."
A Ministry of Justice spokesperson said: "It is vital that vulnerable people in debt are protected and not harassed by rogue bailiffs, which is why we have announced plans to make body worn video cameras compulsory and backed the recently established Enforcement Conduct Board to better hold private bailiffs to account.
"We will review whether the Board requires a statutory footing after it has been running for two years."
The cost of living crisis is affecting many:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.