Understanding Enforcement Fees

Enforcement fees are regulated charges that arise when enforcing court judgments. For a broader overview of the legal framework, see our complete guide to enforcement law. Understanding how fees work helps both creditors (who want to recover them) and debtors (who may have to pay them).

The Key Principle

Enforcement fees are set by regulations, not by individual enforcement companies. They're added to the debt and are generally recoverable from the debtor, meaning the creditor doesn't pay them out of pocket - they come from what's recovered.

Fee Stages

High Court enforcement under a Writ of Control operates in stages, with fees applying at each stage:

Compliance Stage

This is the first stage, triggered when the Notice of Enforcement is sent. The debtor receives notice and has at least 14 clear days to pay.

A fixed fee applies at this stage, regardless of how much is owed.

Enforcement Stage

If the debtor doesn't pay during the compliance period and an enforcement agent attends the premises, the enforcement stage fee is triggered.

This stage includes:

• A fixed element
• A percentage element for debts over a certain threshold

The percentage element means fees increase with larger debts.

Sale Stage

If goods are taken and need to be sold at auction, additional fees apply for:

• Removal and storage of goods
• Sale costs
• Auctioneer fees

How Fees Are Added

Fees are added to the original debt. So if someone owes £5,000 and enforcement proceeds through all stages, the total amount recoverable will be the original debt plus accumulated fees.

For debtors, this means the sooner you engage with enforcement, the lower the total will be. Paying at the compliance stage means only that fee is added. Waiting until sale stage means all fees accumulate.

Who Pays?

The debtor pays - Fees are recoverable from the judgment debtor as part of the enforcement process.

The creditor advances - Some fees may need to be advanced by the creditor initially but are recoverable.

From the proceeds - When goods are sold, fees are taken from the sale proceeds before paying the creditor.

Fee Regulations

Fees are set by the Taking Control of Goods (Fees) Regulations 2014. Enforcement companies cannot charge more than the regulated amounts, though they may charge less.

The regulations specify:

• Fixed amounts for certain stages
• Percentage rates for others
• What can and cannot be charged

For Debtors: Minimising Fees

If you're facing enforcement, fees will be lowest if you:

• Respond to the Notice of Enforcement promptly
• Pay or make arrangements at the compliance stage
• Engage with the process rather than ignoring it

Every stage you allow enforcement to reach adds more fees to what you owe.

For Creditors: Understanding Recovery

Fees affect how much you ultimately receive because:

• Fees are recovered from the debtor, not paid by you
• But if the debtor can only pay a limited amount, fees are taken first
• On larger debts, percentage fees can be significant

This means your recovery depends on both the debtor's ability to pay and where in the process payment happens.

Disbursements

Beyond the regulated stage fees, there may be additional costs called disbursements:

• Storage costs for removed goods
• Locksmith fees (if lawful entry requires this)
• Auction costs
• Specialist removal costs

These must be reasonable and actually incurred.

VAT

VAT at 20% applies to enforcement fees on High Court writs of control and CRAR, because the enforcement agent is a private agent acting commercially. VAT does not apply to County Court warrants (where enforcement is carried out by civil servant bailiffs) or council tax enforcement (where the council recovers fees under s.33 of the VAT Act 1994).

Disputing Fees

If you believe fees have been incorrectly applied, you can:

• Raise the issue with the enforcement company
• Ask for a breakdown of how fees were calculated
• Apply to the court if you believe there's been an error
• Seek advice on whether fees are correctly charged

Related Topics

• Compliance Stage Fees
• Enforcement Stage Fees
• What are Disbursements?
• Challenging Enforcement Fees

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This article provides general information about enforcement fees in England & Wales. It is not legal advice. Fee regulations may change - always check current rules or seek professional advice for specific matters.