Dealing with Bailiffs
Vehicle Seized, Money Taken After TE7 or PE2 Filed
Key Takeaways
- Filing TE7/TE9 or PE2/PE3 suspends enforcement under paragraph 8.1 of Practice Direction 75 until the court makes a further order.
- Any enforcement action taken after filing is unlawful and may entitle you to recover your vehicle or money and claim damages.
- Bailiffs cannot sell your vehicle while the application is pending before the court.
- You should request return of the vehicle to limit losses and strengthen your claim if the court later rules in your favour.
- If the vehicle is damaged or retained unlawfully, you can claim repair costs and consequential losses under the Torts (Interference with Goods) Act 1977.
- Paying under protest and reclaiming later can help mitigate losses while preserving your right to challenge the enforcement.
What happens if bailiffs take my car after I appeal to the TEC?
When a motorist files an out-of-time application with the Traffic Enforcement Centre (TEC), whether under forms TE7 and TE9 or PE2 and PE3, the legal effect is to suspend the enforcement power conferred by the local authority's warrant of control. This is expressly stated at paragraph 8.1 of Practice Direction 75 to the Civil Procedure Rules, which provides that enforcement is stayed upon the filing of such an application until further order of the court. The suspension operates automatically and without the need for judicial intervention, pending determination of the application by a district judge.
Unlawful enforcement action during suspension
Accordingly, if a bailiff, acting under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007, proceeds to take control of goods after the application has been properly filed, that step is taken without lawful authority. Any removal of a vehicle or seizure of funds under such circumstances is invalid. The debtor is entitled to apply to the court to recover the vehicle or funds taken, and to request that the court award costs of the application. In particular, paragraph 66 of Schedule 12 allows the court to order the return of goods or payment of compensation for wrongful interference. Further, where goods have been taken in contravention of a suspended enforcement process, the tort of wrongful interference with goods arises. In such a case, the debtor may also rely upon section 3(2) of the Torts (Interference with Goods) Act 1977, which confers a right to claim damages for any loss resulting from the wrongful interference, including diminution in value or consequential loss.
Requesting the return of the vehicle
The debtor should formally notify the enforcement agent and the instructing authority (usually the local council or Transport for London) that an application has been filed and that enforcement is therefore suspended. A reasonable request should be made for the immediate return of the vehicle or refund of any monies taken. If such a request is refused, and the court subsequently grants the out-of-time application, the debtor may then bring a civil claim for damages. The existence of the suspension renders any refusal to return the vehicle unlawful once the application has been approved, exposing the enforcement company and the instructing authority to liability under common law and statute.
Can the bailiff still sell the vehicle?
It is sometimes asked whether the vehicle may still be sold once a TE7/TE9 or PE2/PE3 has been filed. The answer is no. The practice direction is clear. Once the application is received by the TEC, the warrant is suspended in its entirety. As such, no further enforcement step may be taken. A sale of the vehicle in those circumstances would constitute not only a breach of the suspension but also a conversion of the goods, for which the debtor is entitled to seek redress by way of damages. Any such sale would likely attract indemnity costs.
Retention of goods during suspension
It should be understood, however, that suspension of enforcement does not impose a positive duty upon the bailiff to release or return the goods. Rather, it prevents further steps being taken. In that regard, while the car may not lawfully be sold, it may remain in the enforcement agent’s possession unless the debtor actively seeks its return. That being so, it is advisable for the debtor to write promptly requesting return of the vehicle in order to mitigate potential loss. If the authority or enforcement company refuses, and the court ultimately grants the statutory declaration or witness statement, damages for the period of wrongful retention may be claimed.
Damage and pay and reclaim strategy
In addition, where a vehicle suffers damage whilst under the bailiff’s control, and the enforcement is subsequently declared unlawful, the debtor may seek to recover the costs of repair, loss of use, and any other consequential losses arising from that damage. Some motorists adopt what is commonly referred to as a pay and reclaim strategy, whereby they pay the disputed sum under protest in order to regain possession of the vehicle and then bring a claim for restitution or damages thereafter. This may reduce the risk of escalating losses and preserve the subject-matter of the dispute while litigation is pending.
Conclusion and remedies
In conclusion, enforcement of a traffic penalty charge is suspended automatically upon the filing of a proper out-of-time application with the TEC. Any action by a bailiff in breach of that suspension is unlawful, entitling the motorist to seek restitution or damages under the 2007 Act and the Torts (Interference with Goods) Act 1977. The debtor must act promptly and assertively to preserve their position, and may recover not only their goods or funds, but also their legal costs and any consequential loss arising from the unlawful enforcement.
Remedies
- Apply to the court for restitution if money or a vehicle was taken after filing TE7/TE9 or PE2/PE3, as enforcement is suspended by rule.
- Request the return of the vehicle from the enforcement agent and authority to limit loss while the court determines your application.
- Claim damages under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 for any unlawful enforcement action taken during the suspension.
- Bring a claim under section 3 of the Torts Act 1977 if your vehicle is unlawfully retained or damaged by the enforcement agent.
- Recover repair costs and loss of use if the vehicle is damaged or held after enforcement is found to be unlawful.
- Seek indemnity costs if the bailiff acted in breach of the suspension or failed to mitigate damages.
In conclusion, enforcement of a traffic penalty charge is suspended automatically upon filing a valid out-of-time application with the Traffic Enforcement Centre. Any action by a bailiff taken after that point is unlawful and may entitle the motorist to restitution or damages under the Tribunals, Courts and Enforcement Act 2007 and the Torts (Interference with Goods) Act 1977. The debtor should act without delay by notifying both the local authority and enforcement company of the suspension, requesting the return of the vehicle or refund of monies, and gathering documentary evidence of any loss or damage suffered. Where necessary, the debtor should seek legal advice and consider issuing proceedings in the County Court to recover their property and costs.