I write to update you in relation to recent changes to:
1. court fees pursuant to the Civil Proceedings (Amendment) Order 2014 which take effect from 22 April 2014; and
2. the enforcement of High Court writs following the introduction of the Taking Control of Goods Regulations, 2013, and the Taking Control of Goods (Fees) Regulations, 2014, which take effect from 6 April 2014.
I attach our revised ‘Debt Recovery’ brochure, which sets out the increased court fees. Please note our fees remain unchanged.
The important points to note are the changes in fee structure when instructing an enforcement officer to enforce a High Court writ, following a judgment order, requiring a debtor to pay a sum of money to you.
There remains a £60 court fee to transfer a county court judgment to the High Court for enforcement by a High Court enforcement officer. However, there is a new compliance fee which is now payable on all matters where a High Court enforcement officer is instructed. That compliance fee or, ‘creditor guaranteed fee’ as it is also now known, was previously known as ‘an abortive fee’, and has increased from £60 to £75 plus VAT.
There have also been changes to the amount which the High Court enforcing offer is able to recover from your debtor, when enforcing a court judgment, as follows:
1. First enforcement
Where a controlled goods agreement is entered into, all activity relating to a first attendance at the premises until the agreement is completed or breached is limited to a fixed fee of £190.
2. Second enforcement
(i) no controlled goods agreement is entered into, all activity from the first attendance at the premises to commencement of the sale/disposal; or (ii) a controlled goods agreement is breached.
All activities from the date of the breach to the commencement of a sale/disposal stage are limited to a fixed fee of £495.
3. Sale or disposal
All activity relating to a sale/disposal of the goods (including transporting goods to place of sale) is now limited to a fixed fee of £525.
In addition, a percentage fee can be recovered at the first enforcement and sale/disposal stage if the amount of the sum to be recovered from your debtor exceeds £1000. In these circumstances, a fee of 7.5% of the amount, over the initial £1000, is payable.
The introduction of these fixed fees seeks to clarify matters for persons against whom a county court or High Court judgment is being enforced.
Please be assured that these fees are normally paid by the debtor where enforcement is successful and not by you.
Where enforcement is completely unsuccessful, then you are only liable to pay the compliance fee of £75 plus VAT and the court fee of £60.
If the enforcement is partly successful, the relevant fees are recovered from the monies received from your debtor.