A Reminder on Statutory Notices for High Court Enforcement Agents

As High Court enforcement professionals we work under a statutory licence granted by the Lord Chancellor. Our framework of operations was significantly updated by the introduction of Schedule 12 of the Tribunals Courts and Enforcement Act 2007 and HCEOA Code of Conduct the delayed introduction of the Taking Control of Goods Regulations in 2013 and 2014.

We believe these have been welcome developments in that a clearer process has been developed for the steps that enforcement agents take in seizing goods to pay court judgments.

We no longer “seize” instead we “take”.  The effect is largely the same but consistent information in the form of final notices summons is provided for in the statute and the regulations.  These liability orders and referrals are prescribed by law and must be provided in the form set out by the Regulations.  Here we are providing reminders, summons – which we have then added to with our comments as enforcement professionals.

Notice of Enforcement

A Notice of Enforcement, earlier known as a Distraint Order Notice, can be completed on you by creditors to recover funds owing to them. Although any creditor can serve a Notice of Enforcement, all apart from HMRC and landlords have to go through the courts to obtain one.

HMRC manage to use this path to deal with companies opposed to paying taxes owed, and, likely, you will now have obtained correspondence from them regarding unpaid liabilities.

What does a notice of enforcement achieve?

The high court enforcement notice will specify a period of time (seven days) in which the debtor must settle their debts, or reach an agreement to do so. If the debtor does not settle within seven days, the creditor’s next step is to seek a controlled goods agreement.

Obtaining a Notice of Enforcement is a serious concern. It must be acted upon quickly, otherwise, goods may be seized via a Controlled Goods Agreement, so taking action as soon as the high court enforcement Notice is served should be a preference.

What is a Controlled Goods Agreement (CGA)?

Previously known as a walking possession agreement, a CGA classifies the goods that can be sold to settle the debt. The agreement will include an estimate of the goods’ accurate values.

By signing a CGA, the debtor gains an extra seven days to pay their debts in full. Refusal to sign means that the creditor’s agent can arrange for the immediate removal of goods. The goods can also be seized if the debtor signs the CGA, but still fails to pay their debts in full in time.

1. The All-Important Notice of Enforcement

Of all the statutory notices, the Notice of Enforcement is the most important one.  It effectively gives the Judgment Debtor a breathing space and an opportunity to find the funds to pay the judgment.  The requirements on serving the Notice are strict and will be scrutinized by a Court if a case involving the enforcement process comes before the Master or District Judge.

The Notice of Enforcement or NOE is sent by the enforcement agency chosen to enforce the Writ of Control.  The Regulations provide for just one high court enforcement notice to be sent, although the better practise is for the Notice to be sent to each address where enforcement is likely to take place.  Debtors should not expect reminders of the high court enforcement Notice being sent. 

Notices can be sent by post or by email and we prefer to send ours by email wherever possible as we can add a delivered and read stamp to each email.  The NOE states the amount of the debt and includes a Compliance Stage fee of £75.  The NOE provides the precise date and time by which the amount set out in the NOE must be either be paid.  If the amount due (including the Compliance fee of £75 remains unpaid, or a payment arrangement is not set up by the date specified, a bailiff/enforcement agent will make a personal visit to your property.  The enforcement agent may take control of goods which is defined in the legislation as all property except land.  Here is a copy of the Notice of Enforcement.

2. Controlled Goods Agreement

Understanding that the debt has not been paid to the Enforcement Agent, a Controlled Goods Agreement (previously known as a Walking Possession Agreement) can be imposed that lists the goods to be taken for sale. This method was previously known as ‘seizure,’ but ‘taking control of goods is the phrase used now.

By entering into a Controlled Goods Agreement or control of goods agreement, a Judgment Debtor will be able to continue to use the goods listed and taken into legal control. The form replaces the old form of the “Walking Possession Agreement”.  When a Judgment Debtor signs this form, he or she is acknowledging that the goods listed are under the ‘control of the enforcement agent until the amount outstanding (including bailiff fees) is paid in full.  The Controlled Goods Agreement will state that if the Judgment Debtor fails to stick to the terms of the agreement the goods may be removed and sold.  This will incur a further fee.  Fees are now clearly set out in the Taking Control of Goods (Fees) Regulations 2014.

The Controlled Goods Agreement must be signed by either the debtor, a person authorized by the Judgment Debtor, or a person ‘in apparent authority. The Agreement must provide a detailed description of the items (e.g. computer, television, car, etc.)  together with the make and model (if known) and the relevant serial number, color, and any identifying marks. Here is a copy of the Controlled Goods Agreement.

3. Warning of Immobilization

This notice must be provided if the enforcement agent has fitted a clamp to a motor vehicle or even an aircraft. This notice only needs to be signed by the enforcement agent. Here is a copy of the Warning of Immobilization.

4. Notice of Intention to Re-enter Premises

This notice will be sent when there has been a failure by the Judgment Debtor to keep to the payment terms under the Controlled Goods Agreement.  The notice is to advise the Judgment Debtor that the enforcement agency intends to re-enter the premises to either inspect the goods or more commonly, to remove them for sale. This Notice must provide details of the Controlled Goods Agreement and explain how the agreement has failed. Here is a copy of the Notice of Intention to Re-Enter Premises.

5. Notice After Entry or Taking Control of Goods (on a highway) and Inventory of Goods Taken into Control

This notice will advise the Judgment Debtor of the action taken by the enforcement agent to enter premises or to take control of a vehicle on a highway. Details of how to make payment and the date and time by which the payment has to be made must be included in this Notice. The goods will be released on payment in full (or possibly in rare circumstances, may be released if the Judgment Debtor enters into a payment arrangement with the enforcement agent). This notice only requires the signature of the enforcement agent. Here is a copy of the Notice after entry or Taking Control of Goods (On a Highway).

6. Notice That Goods Have Been Removed For Storage or Sale

This notice must be provided when goods are actually removed. This notice must outline the fees charged to date including any ‘expenses’, and the daily or weekly storage fee. Payment in full (including any storage charges) will avoid the sale of the goods and the goods may be collected. This notice only requires the signature of the enforcement agent. Here is a copy of the Notice that Goods have been Removed for Storage or Sale.

 

7. Inventory

This notice is to advise that goods have been taken into control and once again, only needs to be signed by the enforcement agent. Here is a copy of the Inventory.

8. Notice of Sale

This notice must be provided prior to the sale of goods and must provide the name of the co-owner (if applicable), and details of all fees charged (including any expenses).  Daily storage charges must also be listed. The notice must provide the date, time, and place of the proposed sale.  If payment in full is made, the goods may be collected.  The notice must list the goods (model, serial number, etc.) and must also provide a valuation.  The sale is conditional on the reserve price being met. If this condition is not met, a new time and place of sale must be given on further notice. Here is a copy of the Notice of Sale.

Commentary

The changes introduced in recent years mean that the public can expect a level of consistency of the information they receive about the high court enforcement process.  This is a positive outcome from years of consultation by the Government with all the stakeholder interests.  Our plan is to now provide all parties to the enforcement process with online access to our high court enforcement services so that they can remind themselves where they are in the process. 

Our online platform will provide a portal for creditors and debtors to check in with the process, make a payment, and seek further support on their situation.  The statutory Notices are part of the timeline to the enforcement of a judgment and should be understood in the context of progressing a judgment from notice of its existence (Notice of Enforcement) through to sale (Notice of Sale).  In between, there are opportunities for the matter to be resolved and it is vital there is visibility on where people find themselves along a timeline that is not always straightforward.

Watch out for more news on Shergroup’s portal fondly known as “SHERPA” in the weeks ahead.

Q1: What is a Notice of Enforcement?

A: A Notice of Enforcement (NOE), formerly known as a Distraint Order Notice, is a legal document that creditors can use to recover funds owed to them. While any creditor can serve a Notice of Enforcement, all except HMRC and landlords must go through the courts to obtain one. The Notice of Enforcement is the most important statutory notice in the enforcement process, as it gives the judgment debtor a breathing space and an opportunity to find funds to pay the judgment. It specifies a seven-day period in which the debtor must settle their debts or reach an agreement. The NOE includes a Compliance Stage fee of £75 and provides the precise date and time by which payment must be made.

Q2: How is a Notice of Enforcement served?

A: A Notice of Enforcement can be sent by post or by email. Best practice enforcement agencies prefer to send notices by email wherever possible, as they can add delivered and read stamps to each email for proof of service. The Regulations provide for just one Notice of Enforcement to be sent, although better practice is for the notice to be sent to each address where enforcement is likely to take place. Debtors should not expect reminder notices to be sent. The requirements on serving the Notice are strict and will be scrutinized by a Court if a case involving the enforcement process comes before a Master or District Judge.

Q3: What happens if I don’t respond to a Notice of Enforcement within seven days?

A: If the debtor does not settle their debt within seven days of receiving the Notice of Enforcement, or fails to reach a payment agreement, the creditor’s next step is to seek a Controlled Goods Agreement. If the amount due (including the Compliance fee of £75) remains unpaid and no payment arrangement is set up by the specified date, a bailiff or enforcement agent will make a personal visit to your property. The enforcement agent may then take control of goods, which is defined in legislation as all property except land. Taking action immediately upon receiving a Notice of Enforcement should be a priority to avoid goods being seized.

Q4: What is a Controlled Goods Agreement (CGA)?

A: A Controlled Goods Agreement (CGA), previously known as a Walking Possession Agreement, is a legal agreement that classifies the goods that can be sold to settle a debt. The agreement includes an estimate of the goods’ accurate values and must provide detailed descriptions of items including make, model, serial number, color, and identifying marks. By signing a CGA, the debtor gains an extra seven days to pay their debts in full and can continue to use the goods listed while they remain under the legal control of the enforcement agent. The agreement must be signed by either the debtor, a person authorized by the debtor, or a person in apparent authority.

Q5: What happens if I refuse to sign a Controlled Goods Agreement?

A: If you refuse to sign a Controlled Goods Agreement, the creditor’s agent can arrange for the immediate removal of goods from your property. The goods can also be seized if you sign the CGA but still fail to pay your debts in full within the specified timeframe. By refusing to sign, you lose the opportunity to gain an extra seven days to pay and to continue using the goods while they’re under the enforcement agent’s control. It’s generally in the debtor’s interest to sign the agreement if they need more time to arrange payment.

Q6: What legal framework governs High Court enforcement in the UK?

A: High Court enforcement professionals work under a statutory license granted by the Lord Chancellor. The framework of operations was significantly updated by the introduction of Schedule 12 of the Tribunals Courts and Enforcement Act 2007, the HCEOA Code of Conduct, and the Taking Control of Goods Regulations introduced in 2013 and 2014. These regulations provide a clearer process for the steps that enforcement agents take in taking control of goods to pay court judgments. All liability orders, referrals, and notices are prescribed by law and must be provided in the form set out by the Regulations.

Q7: What fees are charged during the High Court enforcement process?

A: High Court enforcement fees are clearly set out in the Taking Control of Goods (Fees) Regulations 2014. The Compliance Stage fee is £75, which is added to the Notice of Enforcement. If enforcement proceeds to the Enforcement Stage (when an agent visits), additional fees of £235 are charged. If goods need to be removed for storage or sale, further fees apply including daily or weekly storage charges and sale-related expenses. All fees charged must be clearly itemized in the relevant statutory notices provided to the debtor throughout the enforcement process.

Q8: What is a Warning of Immobilization notice?

A: A Warning of Immobilization notice must be provided if an enforcement agent has fitted a clamp to a motor vehicle or even an aircraft. This notice informs the debtor that their vehicle has been immobilized and explains the steps needed to have it released. The notice only needs to be signed by the enforcement agent and must clearly state the amount owed including all applicable fees. The vehicle will remain immobilized until payment is made in full or satisfactory payment arrangements are established with the enforcement agent.

Q9: What is a Notice of Intention to Re-enter Premises?

A: A Notice of Intention to Re-enter Premises is sent when there has been a failure by the judgment debtor to keep to the payment terms under the Controlled Goods Agreement. This notice advises the debtor that the enforcement agency intends to re-enter the premises to either inspect the goods or, more commonly, to remove them for sale. The notice must provide details of the Controlled Goods Agreement and explain specifically how the agreement has been breached. This gives the debtor a final opportunity to make payment before goods are actually removed.

Q10: What happens after an enforcement agent takes control of goods?

A: After an enforcement agent takes control of goods, a Notice After Entry or Taking Control of Goods must be provided to the debtor. This notice advises the judgment debtor of the action taken by the enforcement agent to enter premises or take control of a vehicle on a highway. The notice must include details of how to make payment and the date and time by which payment must be made. The goods will be released upon payment in full, or in rare circumstances may be released if the debtor enters into a satisfactory payment arrangement with the enforcement agent.

Q11: What is the difference between ‘seizing’ and ‘taking control’ of goods?

A: Under the updated regulations, enforcement agents no longer ‘seize’ goods; instead, they ‘take control’ of goods. The effect is largely the same, but the terminology change reflects a more regulated and consistent process. Taking control of goods is defined in legislation as applying to all property except land. The new terminology is part of the clearer process developed for enforcement actions, with consistent statutory notices and prescribed procedures that must be followed by all enforcement agents operating under the Taking Control of Goods Regulations.

Q12: Can HMRC serve a Notice of Enforcement without going through the courts?

A: Yes, HMRC and landlords are the only creditors who can serve a Notice of Enforcement without having to go through the courts first. HMRC uses this enforcement path to deal with companies that oppose paying taxes owed. If you receive correspondence from HMRC regarding unpaid tax liabilities, they may proceed directly to enforcement action without obtaining a court judgment first. All other creditors must obtain a court judgment before they can instruct enforcement agents to serve a Notice of Enforcement and take control of goods.

Q13: What information must be included in a Notice of Sale?

A: A Notice of Sale must be provided prior to the sale of goods and must include: the name of any co-owner (if applicable), details of all fees charged including expenses, daily storage charges, the date, time and place of the proposed sale, a list of the goods with model and serial numbers, and a valuation of each item. If payment in full is made before the sale, the goods may be collected. The sale is conditional on the reserve price being met. If the reserve is not met, a new time and place of sale must be given on a further notice.

Q14: What happens if goods are removed for storage?

A: When goods are actually removed from your property, a Notice That Goods Have Been Removed For Storage or Sale must be provided. This notice must outline all fees charged to date including any expenses, and the daily or weekly storage fee that will be charged while goods are in storage. Payment in full (including any accumulated storage charges) will prevent the sale of goods, and the goods may be collected upon full payment. Storage fees continue to accrue daily or weekly until the debt is settled or the goods are sold, so it’s important to act quickly to minimize these additional costs.

Q15: What is an Inventory notice in the enforcement process?

A: An Inventory notice is provided to advise that goods have been taken into control by the enforcement agent. This document lists all items that are now under the legal control of the enforcement agent and must provide detailed descriptions including make, model, serial numbers, color, and identifying marks where applicable. The Inventory only needs to be signed by the enforcement agent. This document serves as an official record of what goods are subject to the enforcement action and provides clarity for all parties about what may potentially be sold if the debt remains unpaid.

Q16: How can debtors track where they are in the enforcement process?

A: Modern enforcement agencies like Shergroup are developing online platforms (such as “SHERPA”) that will provide portals for both creditors and debtors to check in with the enforcement process. These platforms allow parties to see where they are in the timeline, make payments, and seek further support on their situation. The statutory notices form part of the timeline from the initial Notice of Enforcement through to the Notice of Sale, with opportunities for resolution at each stage. Visibility throughout the process helps debtors understand their position and take appropriate action to resolve the matter.

Q17: Are there opportunities to resolve the debt after a Notice of Enforcement is served?

A: Yes, there are multiple opportunities to resolve the debt throughout the enforcement process. After receiving the Notice of Enforcement, you have seven clear days to make payment or arrange a payment plan. If a Controlled Goods Agreement is signed, you gain another seven days. Even after goods are taken into control or removed for storage, you can still make payment in full (including all fees and storage charges) to prevent sale and recover your goods. At each stage of the process, enforcement agents can negotiate payment arrangements, though the additional fees continue to accumulate at each stage, making earlier resolution more cost-effective.

Q18: What protections do the Taking Control of Goods Regulations provide?

A: The Taking Control of Goods Regulations introduced in 2013 and 2014 provide significant protections including: clearly prescribed statutory notices that must be provided at each stage, strict requirements on how notices must be served, transparent fee structures that are legally capped, detailed requirements for what information must be included in each notice, and specific procedures that enforcement agents must follow. These regulations mean the public can expect consistency in the information they receive about the enforcement process. Courts will scrutinize whether enforcement agents have followed the regulations properly, and improper procedure can invalidate enforcement action.

Q19: What should I do immediately upon receiving a Notice of Enforcement?

A: Upon receiving a Notice of Enforcement, you should: immediately review the amount owed including the £75 Compliance Stage fee, check the precise date and time by which payment must be made, assess your ability to pay in full within the seven-day period, contact the enforcement agency immediately if you need to discuss payment arrangements, gather evidence of any reasons why the debt may not be valid, and seek professional advice if you’re unsure about your rights or obligations. Taking immediate action is crucial because if you do nothing, an enforcement agent will visit your property and may take control of your goods, incurring additional fees of £235 or more.

Q20: How does Shergroup ensure compliance with High Court enforcement regulations?

A: Shergroup operates under a statutory license granted by the Lord Chancellor and specializes in providing professional High Court enforcement services that are fully compliant with the latest regulations including the Tribunals Courts and Enforcement Act 2007, the HCEOA Code of Conduct, and the Taking Control of Goods Regulations 2013 and 2014. The team is experienced in handling everything from Notice of Enforcement letters to complex bailiff removal notices. Shergroup works to protect all parties’ rights while ensuring that court judgments are enforced fairly and effectively, with full adherence to prescribed procedures and statutory notice requirements. They can be contacted at www.shergroup.com or [email protected] for professional enforcement services.