Petition a Bailiff Company's Fitness to Hold a Consumer Credit License

A business trading in debt management or debt collection of debts that are regulated under the Consumer Credit Act 1974 is required by law to hold a category E or category F consumer credit license under Section 21(1) of the Consumer Credit Act 1974. Bailiffs and High Court Enforcement Officers are in debt recovery and debt management but may not need a license if they do not collect debts regulated by the Act.

A person who engages in a licensed activity while unlicensed commits an offence under Section 39(1) of the Act.

Bailiffs collecting unpaid statutory debts such as parking, fines and taxation do not need a license because these debts are not regulated by the Consumer Credit Act. However, companies bidding for enforcement contracts are required to be licensed before making a bid, to ensure companies are fit and proper to hold a government contract enforcing unpaid debts.

Under the 2006 reform of the Act, you have a right to make a complaint against a bailiff's fitness to hold a consumer credit license. If your complaint is upheld, the Financial Conduct Authority ("FCA") can impose a penalty up to £50,000, revoke their license, or both. This means the bailiff must either cease trading under their contract until it is renewed or lodge a security with the Office of Fair Trading to have it re-instated.

It has been known to shut down a bailiff company (only to reform under a new name and with a new guarantor) due to the loss of a consumer credit license following a complaint against its fitness to hold one. The violation was the company was caught charging a fee to process a credit card transaction — which IS a consumer credit regulated activity — and is contrary to the regulations by placing the cardholder under duress to make over their card details, in breach of Regulation 4 of the Consumer Rights (Payment Surcharges) Regulations 2012.

A requirement of a person fit to be licensed is they must have no county court judgments. This becomes a problem if you get a judgment on a bailiff company after a successful claim.

If a bailiff company placed you under duress to make over your card or bank details, or obtained (or attempted to obtain) an unlawful money transfer from you, then you have a right to make a complaint against the company's fitness to hold a consumer credit license.

The following grounds are valid reasons for making a complaint to the FCA credit fitness team:

• Misrepresenting their powers (dishonesty) - Section 2 of the Fraud Act 2006
• Lack of communication or concealment of information - Section 3 of the Fraud Act 2006
• Harassment or intimidation - Section 2 of the Protection from Harassment Act 1997
• Deceptive or unfair methods
• Charging unlawful fees - Section 2 of the Fraud Act 2006
• Inaccurate record keeping
• You obtained a county court judgment against a bailiff company following recovery of unlawful bailiff's fees
• Arithmetic incorrect on fee invoices or other bailiff document
• Falsifying a document or fee invoice - Section 40 of the Administration of Justice Act 1970 and Section 7 of the Fraud Act 2006
• Possession of a document or article for use in connection with fraud - Section 6 of the Fraud Act 2006
• Using a falsified document in connection with fraud - Section 17 of the Theft Act 1968
• Charged interest without having a contract or court order enabling them to do so
• Pretending to have a levy over your goods or vehicle when they have not - Section 2 of the Fraud Act 2006
• Charging VAT on non-VAT-chargeable items, e.g. fees. See HMRC Advice Notice VBNB41720
• Charging VAT without providing a qualified VAT invoice - Section 97 of the Value Added Tax Act 1994
• Refusing to give a qualified VAT invoice until AFTER you have paid it
• Violence - Section 39 of the Criminal Justice Act 1988
• Used abusive language - Section 4 of the Public Order Act 1986
• Conspires to break into your home - Section 1 of Criminal Law Act 1977
• Working as a bailiff without a valid bailiff's certificate - Section 135(b) of the County Courts Act 1984
• Sends a threatening letter in the post conveying a right or entry that has not been approved by Parliament - Section 1(1)(a)(ii) of the Malicious Communications Act 1988

Complaints go to the Financial Conduct Authority credit fitness team by post and email. Add the words "credit fitness" in the subject line of your email.

When drafting your complaint, include any police crime or incident number as this significantly strengthens your complaint.

Also send a copy of your complaint to your local trading standards department.

Complain to trading standards about the bailiff company's fitness to trade in debt management.

In addition to your written complaint, you can also anonymously report the fraud to Action Fraud online. These are investigated by the Serious Fraud Office who can investigate organised complex frauds. Police follow a list of criteria for deciding whether to investigate a fraud. You must learn the criteria and set out your complaint so it fits neatly into it. Otherwise, police will summarily fob your complaint.