Difference between Debt collection and Enforcement

Difference between Debt collection and Enforcement

Debt collection is a word seldom used more frequently to include the entire area of debt recovery rights, including the enforcement of a judgment. There are, though, clear distinctions between the practices and powers of a debt collection agency (DCA) and those within ​enforcement debtor whether a High Court enforcement Officer (HCEO) or a County Court bailiff.

Debt Collection

Enforcement

A debtor is a person, the creditor must follow the new pre-action protocol for debt claims, which outlines the formal steps that must be taken

The creditor does take the debtor to court, most regularly in the County Court, and wins, he will be granted a county court judgment (CCJ).

Once the creditor’s in-house collection The enforcement is chosen, this can be tries to have failed, they may command a offered by either a County Court bailiff DCA to recover the debt.

(CCB) under a warrant of control or by an HCEO under a writ of control, after transferring the CCJ to the High Court for enforcement.

Debt collection is in the form of letters, phone calls, texts, or emails.

The initial step in the enforcement process is the sending of the notice of enforcement, which gives the debtor seven clear days in which to pay in full. If full payment is not made, the enforcement agent (EA) will attend the debtor’s propositions.

The debt collection is that it can be started immediately once in-house methods have been exhausted, with no need to go to court.

Each of the four steps of High Court enforcement (three stages for CCBs) has a regulated set fee structure.

The debtors who can afford to pay but are stringing the process out, it can be effective in demonstrating that the creditor is not going to let it go unpaid.

The​ enforcement of judgment​ fees are combined to the sum recoverable from the debtor, along with court fees and judgment interest at 8%.

The DCA is not strong in collecting the debt, the creditor still has the option to go to court to obtain a decision, although some time will have been lost if this does prove necessary.

EA will either accept a payment arrangement, with the goods covered by a controlled goods agreement, meaning that they will remain under the control of the EA until the debt is paid, either by the installments or by the sale of the controlled goods.

Marston is the UK’s largest judicial services group, recovering more money for High Court clients than any other business.

Call 0333 320 2549 to speak to a specialist in ​high court enforcement recovery or contact us via email