Enforcers to Act as Middle Men?

The Lord Chancellor, in introducing the latest consultation paper in its enforcement review, Warrants and Writs, Oral Examinations and Judgment Summonses, said that special enforcers might be appointed by the courts to help litigants recover the money they are awarded in civil actions. Enforcers could be given powers not available to creditors to find out about debtors’ assets from third parties and could actively pursue ways of enforcing court decisions to help successful litigants get what the courts say they are owed. According to the Lord Chancellor getting a judgment is for too many people the easy part. “Their problems begin after the hearing is over. Too often it is difficult for them even to find out whether the debtor has any assets, let alone to get paid what the court says they are entitled to have”. An independent sample of over 100 cases in 1997 showed that only one third of creditors were paid in full and on time, whilst another third had received nothing. The paper says that obtaining more and better information about debtors’ finances is seen as crucial to ensuring payment for creditors. At the moment, creditors must rely on a debtor’s willingness to co-operate in providing information. It is too easy for a debtor to delay, or avoid giving information. Consideration is being given how information could be obtained from sources identified in the review, particularly banks and building societies; the DSS for information on benefits paid to a debtor; the DVLA for information on vehicle ownership and the Inland Revenue for information on earned income from employment. The paper concedes that there are arguments against allowing detailed information to be passed directly to creditors. It might be difficult to satisfy data protection requirements or to police how the information is used by creditors. The appointment of independent officials, enforcers, with powers to obtain information about debtors’ and third parties and will also be given powers to make decisions in the interest of creditors is the proposed solution. Debtors who fail to provide satisfactory information about their financial circumstances would be told that the court could use powers to obtain information from third parties. It is hoped that faced with these powers, debtors would co-operate more in voluntarily providing information. Responses are invited to David Goss, Civil Justice Division, Lord Chancellor’s Department, Room 3.23, Selborne House, 54-60 Victoria Street, London, SW1E 6QW. Telephone 0171 210 8863. Fax 0171 210 0682.