Controlled Goods Agreement

A controlled goods agreement is a regulated contract between a bailiff and a debt enabling the debtor to retain the right of use of his goods in return for a promise to pay the debt according to an agreed payment schedule.

A valid controlled agreement must comply with all of the following:

Signed by the debtor or person authorised by him

Signed by the bailiff

The debtor must understand it.

The debtors name and address

The date of the agreement

The names of the persons entering the agreement, the debtor and the bailiff

Contact phone number for the bailiff company.

The hours of operation for the bailiff company's contact number

Description of the goods listed, including manufacturer model and serial number, if a vehicle, the registration, colour and description

A schedule of the payment terms the debtor must make to pay off the debt

If the goods is a vehicle parked on the road, (a highway), the bailiff must leave a "notice after entry, and/or taking control of goods on a highway"

A suggested format of a Controlled Goods Agreement is provided in the Schedule of the Certification of Enforcement Agents Regulations 2014

The Law sets the legal definition of a Controlled Goods Agreement is Paragraph 13(4) of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007

Controlled Goods Agreements are prescribed under regulation 15 of the Taking Control of Goods Regulations 2013.

Inventories of controlled goods are prescribed under regulation 33 of the Taking Control of Goods Regulations 2013.

The Law:

Paragraph 13(4) of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 states:

A controlled goods agreement is an agreement under which the debtor—

(a)is permitted to retain custody of the goods,

(b)acknowledges that the enforcement agent is taking control of them, and

(c)agrees not to remove or dispose of them, nor to permit anyone else to, before the debt is paid.

Paragraph 14 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 states:

Who may enter into a controlled goods agreement

(1) Subject to paragraph (2), a controlled goods agreement, as defined by paragraph 13(4) of Schedule 12, may only be entered into by an enforcement agent and—

(a)a debtor who is not a child;

(b)a person, aged 18 or over, authorised by the debtor to enter into a controlled goods agreement on the debtor’s behalf; or

(c)a person in apparent authority who is on the premises, where those premises are used (whether wholly or partly) to carry on a trade or business.

(2) The enforcement agent may not enter into a controlled goods agreement with the debtor or another person who it appears (or ought to appear) to the enforcement agent does not understand the effect of, and would therefore not be capable of entering into, such an agreement.

Regulation 15 of the Taking Control of Goods Regulations 2013 states:

Controlled goods agreements

(1) This regulation applies where a controlled goods agreement is entered into under paragraph 13(1)(d) of Schedule 12.

(2) The agreement must be in writing and signed by the enforcement agent and—

(a)the debtor;

(b)the person authorised by the debtor in accordance with regulation 14(1)(b); or

(c)the person in apparent authority in accordance with regulation 14(1)(c).

(3) The agreement must contain the following information—

(a)the name and address of the debtor;

(b)the reference number or numbers and the date of the agreement;

(c)the names of the persons entering into the agreement;

(d)a contact telephone number and address at which, and the days on which and the hours between which the enforcement agent or the enforcement agent’s office may be contacted;

(e)a list of the goods of which control has been taken with a description to enable the debtor to identify the goods correctly, including, where applicable—

(i)the manufacturer, model and serial number of the goods;

(ii)in the case of a vehicle, the manufacturer, model, colour and registration mark of the vehicle; and

(iii)the material, colour and usage, and (where appropriate) any other identifying characteristic of the goods; and

(f)the terms of the arrangement entered into between the enforcement agent and the debtor for the repayment, by the debtor, of the sum outstanding.

(4) At the time of entering into the agreement, the enforcement agent must give a copy of the signed agreement to the person who signed it under paragraph (2).

(5) Where the enforcement agent enters into the agreement with a person authorised by the debtor in accordance with regulation 14(1)(b) or with a person in apparent authority in accordance with regulation 14(1)(c), the enforcement agent must also provide the debtor with a copy of the signed agreement by—

(a)leaving it in a conspicuous place on the relevant or specified premises, where the enforcement agent has taken control of the goods on such premises; or

(b)delivering it to any relevant premises, in a sealed envelope addressed to the debtor, where the enforcement agent has taken control of the goods on a highway.

(6) Where the enforcement agent leaves a copy of the agreement in a conspicuous place on the relevant or specified premises under paragraph (5)(a) and the enforcement agent knows that a person other than the debtor is on the premises or that there are other occupiers, the copy must be left in a sealed envelope addressed to the debtor.

(7) Paragraph (3)(e) is complied with if—

(a)the enforcement agent provides the debtor with a list of goods of which control has been taken under regulation 30(2)(f)(i) or regulation 33(1)(e) at the same time as entering into the controlled goods agreement; and

(b)the goods of which control has been taken are the same as those referred to in the list mentioned in sub-paragraph (a).

Regulation 30 of the Taking Control of Goods Regulations 2013 states:

Form and contents of notice after entry, and/or taking control of goods on a highway

(1) This regulation applies to the notices required by paragraph 28(1) and paragraph 33(1) of Schedule 12.

(2) Subject to regulations 31 and 32, the notice must be in writing, be signed by the enforcement agent and contain the following information—

(a)the name and address of the debtor;

(b)the enforcement agent’s name, the reference number or numbers and the date of the notice;

(c)that the enforcement agent has done one or more of the following—

(i)entered the premises;

(ii)taken control of goods on a highway;

(iii)entered a vehicle on a highway with the intention of taking control of goods;

(d)the address of the premises which the enforcement agent has entered or the location on the highway where the enforcement agent has taken control of goods or entered a vehicle;

(e)where a vehicle on a highway has been entered with the intention of taking control of goods, the manufacturer, model, colour and registration mark of that vehicle; and

(f)whether or not the enforcement agent has taken control of goods of the debtor and, if so, the location where and the time when control has been taken of the goods and—

(i)a list of the goods of which control has been taken with a description to enable the debtor to identify the goods correctly, including, where applicable—

(aa)the manufacturer, model and serial number of the goods;

(bb)in the case of a vehicle, the manufacturer, model, colour and registration mark of the vehicle; and

(cc)the material, colour and usage, and (where appropriate) any other identifying characteristic, of the goods;

(ii)the amount of the sum outstanding as at the date of the notice;

(iii)the date and time by which the sum outstanding must be paid to prevent the controlled goods being sold;

(iv)how and between which hours and on which days payment of the sum outstanding may be made; and

(v)that the controlled goods will be released on payment in full (or may be released on part payment) of the sum outstanding.

(3) Where the enforcement agent is—

(a)re-entering premises under paragraph 16 of Schedule 12 to inspect goods of which control has previously been taken; and

(b)not using force to effect the re-entry,

the requirement to provide notice under paragraph 28(1) of Schedule 12 does not apply.

(4) Paragraph (2)(f)(i) is complied with if—

(a)the enforcement agent provides the debtor with a list of goods of which control has been taken under regulation 15(3)(e) or regulation 33(1)(e) at the same time as the notice; and

(b)the goods of which control has been taken are the same as those referred to in the list mentioned in sub-paragraph (a).

Regulation 33 of the Taking Control of Goods Regulations 2013 states:

Inventory of goods of which control has been taken: form and contents

(1) The inventory required by paragraph 34 of Schedule 12 must be in writing, be signed by the enforcement agent and contain the following information—

(a)the name and address of the debtor;

(b)the enforcement agent’s name, the reference number or numbers and the date of the inventory;

(c)the name and address of the co-owner, if any;

(d)that the enforcement agent has taken control of the goods of the debtor or of the debtor and the co-owner as specified in the inventory; and

(e)a list of the goods of which control has been taken with a description to enable the debtor or the co-owner to identify the goods correctly, including, where applicable—

(i)the manufacturer, model and serial number of the goods;

(ii)in the case of a vehicle, the manufacturer, model, colour and registration mark of the vehicle; and

(iii)the material, colour and usage, and (where appropriate) any other identifying characteristic, of the goods.

(2) The inventory may be combined with a controlled goods agreement under regulation 15(1) or the notice required by paragraph 28(1) or 33(1) of Schedule 12 if—

(a)the enforcement agent provides the debtor with the inventory at the same time as the controlled goods agreement or the notice; and

(b)the goods of which control has been taken are the same as those listed in the list of goods of which control has been taken required by regulation 15(3)(e) or regulation 30(2)(f)(i).