When the amount outstanding has been paid directly to the creditor, the enforcement power ceases to have effect.
However, you must give notice to the bailiff when you have paid the creditor.
If a bailiff continues to pester you for fees, then apply for a detailed assessment hearing under CPR 84.16.
Paragraph 6 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007 states:
6(1) For the purposes of any enforcement power the property in goods of the debtor ceases to be bound in accordance with this paragraph.
6(2) The property in any goods ceases to be bound-
(a) when the goods are sold;
(b) in the case of money used to pay any of the amount outstanding, when it is used.
6(3) The property in all goods ceases to be bound when any of these happens-
(a) the amount outstanding is paid, out of the proceeds of sale or otherwise;
(b) the instrument under which the power is exercisable ceases to have effect;
(c) the power ceases to be exercisable for any other reason.
The "amount outstanding" is defined in paragraph 50(3) of Schedule 12, which states:
50(1) Proceeds from the exercise of an enforcement power must be used to pay the amount outstanding.
50(2) Proceeds are any of these-
(a) proceeds of sale or disposal of controlled goods;
(b) money taken in exercise of the power, if paragraph 37(1) does not apply to it.
50(3) The amount outstanding is the sum of-
(a) the amount of the debt which remains unpaid (or an amount that the creditor agrees to accept in full satisfaction);
(b) any amounts recoverable out of proceeds in accordance with regulations under paragraph 62 (costs).
Defined again under paragraph 50(1):
50(1) Proceeds from the exercise of an enforcement power must be used to pay the amount outstanding.
50(2) Proceeds are-
(a) proceeds of sale or disposal of controlled goods;
(b) money taken in exercise of the power, if paragraph 37(1) does not apply.
See also paragraph 37 regarding best price and handling of money.
Guideline 31 of the Taking Control of Goods: National Standards 2014 states:
Enforcement agents must not seek to enforce the recovery of fees where an enforcement power has ceased to be exercisable.
Provided the bailiff has not taken control of goods, there are no "proceeds".
A bailiff may only take control of goods by one of the four steps listed in paragraph 13(1) of Schedule 12:
(a) Secure the goods on the premises;
(b) Secure them on a highway;
(c) Remove them and secure them elsewhere;
(d) Enter into a controlled goods agreement with the debtor.
It is essential to notify the bailiff when you pay. Otherwise, he may take an enforcement step without liability.
See paragraph 59 of Schedule 12:
(1) This paragraph applies if a further step is taken despite paragraph 58(3).
(2) The enforcement agent is not liable unless he had notice, when the step was taken, that the amount outstanding had been paid in full.
Give notice to the bailiff and keep a copy. You can use this template:
You may give notice by email, post, or text message.
If a bailiff takes enforcement action after notice, you may sue for breach of paragraph 6(3)(a), under paragraph 66 of Schedule 12.
66(1) This paragraph applies where an enforcement agent-
(a) breaches a provision of this Schedule, or
(b) acts under a defective enforcement instrument.
66(5) In proceedings the court may:
(a) order goods to be returned;
(b) order damages for loss caused by the breach or defect.
You can bring this action in the county court.
If a bailiff seeks money with no enforcement power, he is not acting lawfully. You can apply for a restraining order.