Debt collection: the case against Warrants of Control

Necla Bakirci is Head of Quality and Compliance for the Debt Free Advice team at Toynbee Hall. She wrote about debt collection for Quarterly Account, the journal for money advice service professionals.

Debt collection should not come at the expense of human dignity. Yet, the use of Warrants of Control, commonly enforced by bailiffs, does just that, turning homes into places of fear rather than safe spaces. 

A Warrant of Control is a legal document that may be issued if you have a county court judgement against you that you haven’t paid.

The Warrant authorises enforcement agents, bailiffs, to visit you at your home or business premises to collect the money owed or, if you can’t pay, seize possessions. Any possessions taken are then sold at auction to raise enough money to cover the debt.

Emphasise protecting individuals

In a modern society that talks about prioritising mental wellbeing, this approach is not only outdated but also contradicts the Financial Conduct Authority’s (FCA’s) vulnerability policies, which emphasise protecting individuals with mental health struggles from aggressive debt collection tactics.  

Creditors have multiple legal avenues to recover debts without resorting to bailiffs.

For example, there are attachment of earnings or benefits, third-party debt orders, and charging orders that provide structured and humane solutions that prevent unnecessary distress.

A system that supports rather than punishes

As we know from calls to our advisors, bailiff action, or the threat of it, inflicts unnecessary harm:

• Psychological distress, particularly for vulnerable individuals and families

• Financial instability, as asset seizures can strip debtors of essential resources, like transportation for work

• Unclear processes, with poor communication that hinders debt resolution and access to legal relief. 

If we want to prioritise mental health, we need to work together. Retraining bailiff companies as debt collection agencies within structured collection processes, that work alongside debt advisors and creditors, would create a system that supports people with problem debt, rather than punishes – prioritising resolution over intimidation.

Supporting people with expert debt advice

Our debt advice services supported more than 10,300 people with financial problems during 2023-24 and helped people become more than £16,500 better off.

Debt Free Advice is also now part of the Mental Health Crisis Breathing Space service, in partnership with the We are Group and Kaleidoscope. This offers time to people feeling overwhelmed by debt and who are receiving mental health crisis treatment. The Mental Health Crisis Breathing Space offers them a break from the organisations they owe money to, so they can focus on their recovery.

The future of debt collection must balance fairness with humanity and address the growing mental health crisis, a key concern of the FCA’s Consumer Duty which aims to protect vulnerable individuals from harmful financial practices.

Debt Free Advice

Toynbee Hall is the lead partner of Debt Free Advice, a partnership of 15 charities working across London to help Londoners tackle debt. We provide support at our Advice Hub and locations in Newham, Greenwich, and Barking & Dagenham. Find out more about Debt Free Advice.

The full article is available here Quarterly Account – Institute of Money Advisers, free to members, a paywall for non-members.