CIVEA Guidance Note.....When should the 'Sale Fee' of £110 be charged.

[Bailiff Advice]

A week or so ago a regular contributor on here (Dodgeball) started a discussion thread on the subject of when a bailiff should legally be able to charge a 'Sale Fee' of £110. The importance of this subject prompted me to approach CIVEA (The Civil Enforcement Agency) and yesterday they provided me with a copy of their official Guidance Note on the subject. A copy of this should be featuring on their website this weekend.

 

Dodgeball's important and interesting thread on this subject has run to 5 pages and with 100 replies, I thought that this Guidance would get better publicity if it was posted on a separate thread.

 

The original discussion thread can be found under the following link:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?453200-Removal-for-sale-fee-when-can-it-be-charged

[Bailiff Advice]

CIVEA Guidance Note

 

The transition from the enforcement to the sale stage and when a sale stage fee becomes applicable

 

How and why the issue arises

 

1.1 Historically, attendance to remove (ATR) fees under the old regime have been contentious, particularly where issues arose as to whether there was an actual ability to remove goods, and whether that was a prerequisite for an ATR fee. The clear aim of the new legislative regime is to remove such uncertainties. 


 

1.2 The "trigger" for the application of a sale stage fee attracted considerable debate during the consultation process. It was even suggested by the MoJ - but countered by CIVEA - that actual removal would have to take place in order to 
justify a sale stage fee. That would lead to an absurd result because, as is known, the catalyst for payment is often the realisation that actual removal of goods is imminent; either when the removal vehicle has been summoned, or when it arrives. Where a removal vehicle has been called, or has arrived, and where payment is then made, it would be inflammatory to have to complete the exercise of removal so as to justify a fee. 


 

2. Legal framework


Regulation 5 of the Taking Control of Goods (Fees) Regulations 2014 provides, so far as material:

 

Stages of enforcement for which fees may be recovered - enforcement other than under High Court writs

 

5.-(l) The relevant stages of enforcement under an enforcement power which is not conferred by a High Court writ are as follows -

 

(a)

the compliance stage

, which comprises all activities relating to enforcement from the receipt by the enforcement agent of instructions to use that procedure in relation to a sum to be recovered up to but not including the commencement of the enforcement stage;

 

(b)

the enforcement stage

, which comprises all activities relating to enforcement from the first attendant at the premises in relation to the instructions up to but not including the commencement of the sale or disposal stage;

 

©

the sale or disposal stage

, which comprises all activities relating to enforcement from the first attendance at theproperty for the purpose of transporting goods to the place of sale, or from commencing preparation for sale if the sale is to be held on the premises, until the completion of sale or disposal...

 

Guidance

 

3.1 Regulation 5 draws a sharp distinction between the various stages. 


 

3.2 A sale stage fee becomes applicable when there is a step-change between the enforcement and sale stages. A "step-change" requires a positive action, the best example of which will be the calling of a removal vehicle (and therefore incurring a liability to a third party contractor). 


 

3.3 What will amount to a step-change will be fact-specific, and it is impossible to cover every factual scenario. The following, however, will not amount to a step-change: 


 

a mere intention, or mindset, to remove goods 


 

that a number of enforcement visits have been made so as to meet some sort of 
arbitrary "threshold" for a sale stage fee somehow to become applicable 


 

that an enforcement agent has been at the scene for a length oftime - in other 
words, by the sheer lapse of time 


 

where a vehicle has been immobilised, but before a removal contractor is 
contacted 


 

where a controlled goods agreement has been completed




 

3.4 The above examples are set out to demonstrate that:

 

(i) a sale stage fee does not become automatically applicable,

 

(ii) a passive or default approach is not what the Regulations intend and:

 

(iii) it will require a positive step-change.

[Peterbard]

Do you want any discussion/analysis on this to be on here or on the other thread BA ?

[Bailiff Advice]

I have posted a copy on your thread as well so it may be best to keep the discussion going on there.

[Bailiff Advice]

I have updated this thread to provide a copy of the guidance given by the High Court Enforcement Officers Association (HCEOA) on the subject of the 'sale stage' fee.

 

High Court Enforcement Officers Association (HCEOA) Guidance :

 

A 'Sale stage' fee can only be applied under certain circumstances and cannot apply if there are no goods being taken into control which would justify removal for sale.

 

This may apply, if during Enforcement Stage 1 or 2, the enforcement is escalated to a removal or securing of the premises for a sale on site or a separate visit is planned and takes place, following the appropriate notice, for example, where there has been a breach of CGA and notice of intention to remove has been given (Notice of Re-entry under Regulations 26, TCG Regs 2013

 

This requires as a minimum, attending to carry out the planned action and should be supported by evidence.

 

In all instances, details of the action taken should be kept.

 

It is not necessarily sufficient to say:

 

That a number of enforcement visits have been made meeeting some sort of arbitrary "threshold" for a Sale stage fee how to become applicable

 

That an enforcement agent has been at the premises for some time

 

A vehicle has been immobilised for the purpose of bringing pressure to bear

 

A Controlled Goods Agreement has been completed and breached,

 

What is clear from the Regulations is that a positive step towards the stage needs to take place, in order to trigger the fee.

[Bailiff Advice]

If visitors to this thread have any questions or comments to make on this subject, can they please do so on the following 'discussion thread'.

 

https://www.consumeractiongroup.co.uk/forum/showthread.php?453200-Removal-for-sale-fee-when-can-it-be-charged-(1-Viewing)-nbsp