Bailiffs And Controlled Goods Agreements

In brief

A controlled goods agreement is one of the statutory ways in which an enforcement agent may take control of goods. Paragraph 13(4) of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 defines it as an agreement under which the debtor retains custody, acknowledges that the enforcement agent is taking control, and agrees not to remove or dispose of the goods, or permit anyone else to do so, before the debt is paid.

Jurisdiction: England and Wales. Explore the Controlled goods, exemptions and ownership topic hub.
On this page

A controlled goods agreement is one of the statutory ways in which an enforcement agent may take control of goods. Paragraph 13(4) of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 defines it as an agreement under which the debtor retains custody, acknowledges that the enforcement agent is taking control, and agrees not to remove or dispose of the goods, or permit anyone else to do so, before the debt is paid.

Who may enter into the agreement?

Regulation 14(1) of The Taking Control of Goods Regulations 2013 permits a controlled goods agreement to be entered into by the enforcement agent and one of the following:

  • the debtor, provided the debtor is not a child;
  • a person aged 18 or over who is authorised by the debtor to enter into the agreement on the debtor's behalf; or
  • a person in apparent authority who is on premises used wholly or partly to carry on a trade or business.

The apparent-authority category is therefore not a general rule allowing any adult found in an ordinary home to bind the debtor.

Regulation 14(2) of The Taking Control of Goods Regulations 2013 prohibits the enforcement agent from entering into the agreement with a person who appears, or ought to appear, not to understand its effect and therefore not to be capable of entering into it.

Legal correction: an agreement is not automatically invalid merely because it was signed by someone other than the named debtor. The question is whether the signer falls within regulation 14(1)(b) or regulation 14(1)(c) of The Taking Control of Goods Regulations 2013 and whether the other statutory requirements were met.

Required form and contents

Regulation 15 of The Taking Control of Goods Regulations 2013 requires the agreement to be in writing and signed by the enforcement agent and the lawful signer. It must include:

  • the debtor's name and address;
  • the reference number or numbers and date;
  • the names of the persons entering into it;
  • the prescribed contact details;
  • an identifiable list of the controlled goods, subject to the linked-inventory provision in regulation 15(7) of The Taking Control of Goods Regulations 2013; and
  • the repayment terms.

A signed copy must be given to the person who signed at the time the agreement is entered into. Where an authorised person or a person in apparent authority signs, regulation 15(5) and regulation 15(6) of The Taking Control of Goods Regulations 2013 impose additional duties to provide the debtor with a copy in the prescribed manner.

What follows from a defect?

Do not assume that every drafting or copy defect automatically determines the validity of all earlier or later enforcement action. Identify the precise statutory requirement, the way it was breached, whether control was purportedly taken by another statutory method, any resulting loss, and the remedy sought. Where appropriate, paragraph 66 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 and rule 84.13 of The Civil Procedure Rules 1998 may require consideration.

Primary and official sources linked on this page

These links are included to make the underlying legal or official source material easier to verify.

Bailiff Damaged Your Car After Removing ItOnce controlled goods are removed, the enforcement agent owes express statutory duties concerning their care, condition and storage.Bailiff Failed To Give You A ValuationCompleted listings and dealer or auction comparables may be useful evidence, but they are not automatically conclusive.Bailiffs And Exempt GoodsAn enforcement agent may take control only of goods that are not exempt, subject to the statutory scheme.Making A Third-Party Claim To Controlled GoodsParagraph 10 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 provides that an enforcement agent may take control only of goods of the debtor.Protecting your goods and vehicle lawfullyUse lawful exemptions, ownership evidence and court procedures; do not hide, transfer or interfere with goods once they are bound by an enforcement power.