Council takes kickback from bailiff company
Scrutiny report shows policy of recouping costs from external firmA bailiff company working for Ealing Council is paying back 20 per cent of the fees it collects a scrutiny report has revealed.
The scrutiny panel report published online by the council shows that external bailiff company (knows only as 'company C') is collecting over £3.5 in business rates on behalf of Ealing Council. The council also operates as in-house team, which was forecast to overspend £29,550.
"External Bailiff C has agreed to pay over to Ealing 20 per cent of bailiff fees to assist in covering the internal costs of the business rates operation," says the report.
Philip Evans, past chairman of the Enforcement Law Reform Group, said this practice was generally condemned in the industry as bailiff fees are charged for work done in the enforcement of a warrant.
"These fees can include some profit because bailiff firms are private sector businesses but if firms are going to give a kickback to a local authority they will have to inflate fees artificially or eat into their profits, which undermines their viability," he said
A spokeswoman for Ealing Council said: "We make businesses who fail to pay their rates cover some of the costs we incur when we send in bailiffs because we think it would be wrong for Ealing residents to foot the bill. However, the fees that we can charge are proportionate and are dictated by government regulations. We also retain the right to use our discretion and have on occasion waived the fee in exceptional circumstances."
Other bailiffs spoken to said the practice was bad news as it "drives competition underground".
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