Today a number of regulatory bodies and organisations have announced the formation of a new independent body, the Enforcement Conduct Authority (ECA), to provide fair and formal supervision of the enforcement industry. There has long been a call for the enforcement industry to be regulated and this is a step in the right direction.
The Enforcement Conduct Authority
The setting up of the new independent body follows the publication of a new report from the Centre for Social Justice (CSJ). “Taking Control for Good: Introducing the Enforcement Conduct Authority” highlights the problems that debt can have on families. This new initiative is being designed to protect families, with more than 2.4 million people now in ‘severe debt’ according to the CSJ report.
The Enforcement Oversight Working Group was founded by the CSJ in 2020. This was the first time the debt advice and enforcement sectors had been brought together to develop their vision for reform. It was established to address the key challenges that had been identified in recent years. It has co-designed this new independent oversight body, the Enforcement Conduct Authority, which is set out in the CSJ report.
The Taking Control for Good report concludes that ‘a tidal wave of debt’ is looming on the horizon. The Money and Pensions Service estimates that there will be a 60% rise in the need for urgent debt advice, as the furlough scheme and payment deferrals set up during the Covid pandemic come to an end.
In order to protect debtors, the CSJ has recommended bringing together debt charities and enforcement companies to set up the Enforcement Conduct Authority. This new independent body will work to help those vulnerable people in debt and prevent harmful debt collection tactics that have overshadowed the industry. Its objectives will be to raise standards in the industry, improve accountability, adjudicate complaints and recognize where there is vulnerability.
Andy Cook, Chief Executive of the CSJ, said: “Problem debt ruins lives. It tears families apart, places a strain on employment, and can even lead people down a path to alcohol and substance dependency.
“The Enforcement Conduct Authority developed by the CSJ with the debt advice and enforcement sectors will empower bailiffs to carry out their duty to courts, creditors and taxpayers fairly, while equipping them with the tools to support vulnerable people on a sustainable journey out of debt.”
Establishing the ECA
There will be a senior chairperson in place to develop and deliver this joint framework and launch the ECA. The Working Group is in the process of appointing this person. During the transition process, the ECA will be assisted by an Advisory Panel. This will include members of the Ministry of Justice, the enforcement industry, the debt advice sector, and the Enforcement Oversight Working Group.
The ECA’s initial remit will be over certificated enforcement agents and all firms that employ them. It will deliver a strategy to bring all certificated enforcement agents under its authority and review whether, and what, statutory powers are necessary to bring as many certificated agents as possible under the authority of the ECA. The authority will also consult on the most effective way to bring other types of enforcement agents, such as High Court Enforcement Officers, County Court bailiffs, and Civilian enforcement officers, under its remit.
The independent body will seek the appropriate powers to create new binding rules and set new minimum conditions. This includes reviewing the National Standards, guidance on vulnerable debtors and how to provide fair and affordable repayment plans.
The ECA will be responsible for overseeing the conduct of enforcement agents and agencies under its remit. It will have the authority to request data and information, conduct audit visits and sample checks and carry out its own independent research.
It will have the autonomy to impose sanctions on agents and agencies for non-compliance with the minimum conditions, standards, and competencies it has set out. There will be an independent complaints mechanism to adjudicate escalated complaints, with a set time frame for handling complaints. The authority will work closely with bodies that currently have oversight on complaints relating to enforcement agents, including industry trade bodies and the Local Governance and Social Care Ombudsman (LGSCO), to determine the most effective transitional framework for bringing oversight on complaints under its remit.