Bailiffs and Consumer Credit Regulated Debts
Bailiffs working under a power of a High Court writ of control cannot recover debts whose agreements are regulated by the Consumer Credit Act 1974.
Debts include money owed on credit cards, credit unions, personal loans and overdrafts.
The Law:
Section 141 of the Consumer Credit Act 1974 states:
Jurisdiction and parties.
(1)In England and Wales the county court shall have jurisdiction to hear and determine—
(2) Where an action or application is brought in the High Court which, by virtue of this Act, ought to have been brought in the county court it shall not be treated as improperly brought, but shall be transferred to the county court.
(3)In Scotland the sheriff court shall have jurisdiction to hear and determine any action referred to in subsection (1) and such an action shall not be brought in any other court.
(3A)Subject to subsection (3B) an action which is brought in the sheriff court by virtue of subsection (3) shall be brought only in one of the following courts, namely—
(5)Except as may be provided by rules of court, all the parties to a regulated agreement, and any surety, shall be made parties to any proceedings relating to the agreement.
(1)In England and Wales the county court shall have jurisdiction to hear and determine—
(a)any action by the creditor or owner to enforce a regulated agreement or any security relating to it;
(b)any action to enforce any linked transaction against the debtor or hirer or his relative,
and such an action shall not be brought in any other court.(2) Where an action or application is brought in the High Court which, by virtue of this Act, ought to have been brought in the county court it shall not be treated as improperly brought, but shall be transferred to the county court.
(3)In Scotland the sheriff court shall have jurisdiction to hear and determine any action referred to in subsection (1) and such an action shall not be brought in any other court.
(3A)Subject to subsection (3B) an action which is brought in the sheriff court by virtue of subsection (3) shall be brought only in one of the following courts, namely—
(a)the court for the place where the debtor or hirer is domiciled (within the meaning of section 41 or 42 of the Civil Jurisdiction and Judgments Act 1982);
(b)the court for the place where the debtor or hirer carries on business; and
(c)where the purpose of the action is to assert, declare or determine proprietary or possessory rights, or rights of security, in or over moveable property, or to obtain authority to dispose of moveable property, the court for the place where the property is situated.
(3B)Subsection (3A) shall not apply—
(a)where Rule 3 of Schedule 8 to the said Act of 1982 applies; or
(b)where the jurisdiction of another court has been prorogated by an agreement entered into after the dispute has arisen.
(4)In Northern Ireland the county court shall have jurisdiction to hear and determine any action or application falling within subsection (1).(5)Except as may be provided by rules of court, all the parties to a regulated agreement, and any surety, shall be made parties to any proceedings relating to the agreement.
Since 2014, enforcement procedures for debts in the High Court and the county court are identical.
Bailiff companies transfer county court debts to the High Court only to make a higher commercial gain for themselves.
Transferring a debt to the High Court gives no benefit to the creditor.
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