Speak to a BAILIFF Expert - £35
If you are an individual interested in starting up in claims management then the industry is currently unregulated.
If you are reclaiming PPI then you must be regulated and authorised by the Ministry of Justice and provide consumer protection by tackling bad practices.
However such a category for bailiff fee reclaims does not exist yet so it remains an unregulated activity. It is unlikely to become regulated because HM Government would have to officially concede that bailiffs are charging illegal fees.
The Ministry of Justice will not like you making claims against government departments and councils so it is further evidence this activity will remain unregulated.
Claims management companies have an in-house solicitor or know someone with a practising certificate. This enables the company to include the word "solicitors" in its name to give officialdom to the company.
You need an inside man from the legal profession to sound out your business model before you start it up. Law colleges, e.g. Greenwich, Kings College, will know solicitors interested in joining a partnership on a new business venture.
The next hurdle is sourcing clients. There are two ways.
1. Advertise. This will only generate clients on a one-by-one basis, and suited for smaller operations giving a more personal service. It is the only way to source clients who are victims of unlawful fee charging by HCEOs. Your market will be almost exclusively the low-income sector, so develop your marketing appropriately. You do not need regulation because you have your clients sign a letter of authority enabling you to act for them and you can file claims in the small claims court in their name but at your address and you handle all the refunds taking your cut. Bailiffs will not take the risk of a CCJ by allowing a claim to reach trial, because a bailiff or HCEO receiving a CCJ on their name puts them out of business.
2. Bulk sourcing. This method is cheaper because it generates clients quickly from a specific target area. It is suitable if you intend to employ a large workforce or offshoring your manpower to India or the Philippines for the procedural work to progress claims on your server. Never use offshore staff in client-facing roles other than for telephone canvassing.
Once you are regulated, you can approach local councils, TFL and the HMCTS Magistrates' Courts for lists of debtors and defendants who have paid money to bailiffs in the last 6 years (but Section 32 of the Limitation Act 1980 removes the statutory time limit of 6 years for the recovery of unlawful bailiff's fees). Approach through Chamber of Commerce or sound out your local councillors. Use caution if your business plan includes paying kickbacks for civil servants but town halls themselves could do with the money so you may include this in your negotiations.
Some authorities may cite the Data Protection Act but councils often need reminding it does not apply because crime and taxation are exempt. Council tax is a tax and court fines are a penalty for the crime and you can quote these in your approach procedure. The Minister of State speaking in the House of Lords confirmed bailiff crime is not a civil matter on April 20, 2007.
Council tax/NDR: any fee paid that is not prescribed and fees and costs for work not done.
Parking: any amount paid that is not prescribed and greater than the £28 statutory fee and £11.20 letter fee, e.g., Van fee, enforcement fee and attendance fees and any fees or costs for work not done.
Court fines: all fees paid by the defaulter are recoverable, except where the bailiff has removed your goods, and even then you can challenge them on lack of evidence of disbursements. Use this FOI and get a copy of the HMCTS Enforcement Services Contract.
HCEOs: all money paid by the debtor that does not fall into Regulations 1 to 7 of Schedule 3 of the High Court Enforcement Officers Regulations 2004.
For council tax, business rates and traffic debts, the claim is made jointly against the council and the bailiff company and the bailiff himself.
For HCEO enforced debts, you sue the creditor and the HCEO company jointly.
For court fines, the claim is made against the Secretary of State for Justice and the bailiff company jointly.
If the bailiff company has been wound up then the claim passes solely to the creditor.
If the average fee reclaim is, say £300 per case, and you charge 50% as your retainer then it is not difficult to work out the potential gains just by completing 10 cases a day. And your client does not even have to go to court!
You will need Professional Indemnity Insurance. The following providers are known to offer cover: