Dealing with Bailiffs

Challenging the £110 Sale Stage Fee Charged by Bailiffs

Statutory basis for the sale stage fee

Where a debtor has been charged the £110 fee known as the "sale or disposal stage fee" by a bailiff or enforcement agent, it is important first to ascertain whether the legal conditions entitling the agent to levy such a fee have in fact been met. The statutory regime regulating the enforcement of debts by taking control of goods is governed primarily by Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 and its accompanying statutory instruments, including the Taking Control of Goods Regulations 2013 and the Taking Control of Goods (Fees) Regulations 2014.

How control of goods is lawfully taken

Paragraph 13(1) of Schedule 12 of the 2007 Act stipulates four methods by which an enforcement agent may lawfully take control of goods. These are: by securing the goods on the premises where they are found; by securing them on a highway, either at the point of discovery or within a reasonable distance; by removing them and securing them elsewhere; or by entering into a Controlled Goods Agreement with the debtor. It is only upon the completion of one of these steps that goods may lawfully be considered as having been taken into control. The implication is plain: unless and until the enforcement agent takes control of goods in accordance with these statutory prescriptions, they may not proceed to the next stage of enforcement.

When the sale stage fee may be charged

Once goods have been taken into control, the regulations permit the enforcement agent to move to what is described as the “sale or disposal stage.” This stage is defined at Regulation 5(1)(c) of the Taking Control of Goods (Fees) Regulations 2014 for non-High Court enforcement, and Regulation 6(1)(d) for High Court enforcement, but both contain substantially identical provisions. The regulation provides that this stage comprises all activities relating to enforcement from the first attendance at the property for the purpose of transporting goods to the place of sale, or from commencing preparation for sale if the sale is to be held on the premises, until the completion of the sale or disposal. Crucially, this provision does not allow the agent to levy the £110 fee merely by issuing threats, suggesting the calling of a tow truck, or removing goods to a compound that is not a designated place of sale. The fee is contingent upon tangible enforcement action connected with the commencement of sale preparations or removal to an authorised sale venue.

Legal remedy available to the debtor

Where this condition is not met, and a sale stage fee is nonetheless charged, the debtor has recourse under Civil Procedure Rule 84.16 to apply to the County Court for a detailed assessment of the fees. A successful application may result in the recovery of the disputed fee. In such proceedings, the court has discretion to award the costs of the application to the successful applicant pursuant to Civil Procedure Rule 44.2, and if the applicant is represented, Civil Procedure Rule 46.5 and Practice Direction 46 paragraph 3.1 permit a litigant-in-person to recover reasonable legal expenses.

Remedy for third parties wrongly charged

Where the person from whom the money was taken is not in fact the debtor, he or she cannot apply for a detailed assessment under Civil Procedure Rule 84.16. In those circumstances, the appropriate course is to initiate a claim in the County Court under the small claims track, in accordance with Civil Procedure Rule Part 27, seeking recovery of the sum taken under the ordinary principles of restitution and tortious liability.

Conclusion and next steps

It follows that if you have been charged the sale stage fee of £110 without any goods having first been taken into lawful control, or where the agent has not begun any legitimate activity connected to an impending sale, you are likely to be entitled to recover that fee. The law does not permit agents to fabricate procedural steps or charge for the mere threat of enforcement without grounding those steps in the statutory framework. If you are the debtor, I can assist you in preparing a detailed assessment application, including drafting the relevant forms and supporting witness statement. If you are a third party from whom the money was wrongfully taken, I can assist you in issuing a civil claim for restitution. In either case, the unlawful retention of such a fee is actionable, and recovery of legal costs may be available.