The Enforcement Conduct Board (ECB) has published a sector-side review into linking cases and fee-charging practices across the enforcement sector. The Review examines how firms interpret the Taking Control of Goods (Fees) Regulations and apply fees in practice.
ECB found no evidence of widespread or systemic overcharging, but did identify inconsistencies in firms approaches, including:
- how cases are identified and linked
- whether cases should be linked across different creditors
- when enforcement fees are triggered
- how and when sale fees are applied
As a result of this, ECA acknowledges that new Standards are needed to ensure everyone going through the enforcement process is treated fairly and will consult on the new Standards later this year, for implementation in 2027.
Chris Nichols, Chief Executive of the Enforcement Conduct Board, said:
“It is reassuring that we have not identified widespread or systemic overcharging, but inconsistencies in how the rules are applied are leading to unfair outcomes for some. People in similar circumstances should not face materially different fees depending on who is enforcing the debt, or in which part of the country.
“We have seen positive engagement from firms and a willingness to improve, which we welcome. But it is clear that new Standards are needed to remove ambiguity and ensure that fees are applied consistently across the sector.
“We will be consulting on proposals later this year and look forward to working with stakeholders to deliver a fairer system for those experiencing enforcement and a more level playing field for firms.”