Latest news with #MarstonHoldings
The Sun
17 hours ago
- Business
- The Sun
UK's biggest bailiff firm forced to issue REFUNDS after overcharging hard-up households
THE UK's biggest bailiff firm has been forced to issue refunds after overcharging hard-up households hundreds of pounds. Marston Holdings has apologised after charging people multiple "enforcement fees" - which are £235 each - relating to unpaid road traffic penalties. 1 This is a fixed fee added to debts when a bailiff visits someone's home in England and Wales. Thousands of people may have been wrongly charged more than one enforcement fee by the company, sources told The Guardian. Marston said the issue with its systems had now been fixed and refunds had been sent to everyone affected. However, minutes of a trade body meeting last month said the company, which was alerted to the issue in April, was reviewing seven years' worth of cases. It also said the company would be setting up a full refunds scheme with a dedicated call centre that would operate for three years. Marston works for several public bodies to recover debts, including dozens of local authorities, Transport for London, National Highways and HM Courts and Tribunals Service (HMCTS). Bailiff watchdog the Enforcement Conduct Board (ECB) slammed the incident as "unacceptable". ECB boss Chris Nichols said: 'It is very concerning to see breaches of regulations that are there to protect the public from overcharging. 'This is unacceptable behaviour, and the ECB is taking strong action to ensure that people who have been impacted are found and refunded, and that this behaviour is never repeated. 'We have ensured that Marston has signed up to a robust action plan to put this right.' 6 easy ways to boost your credit rating A spokesperson for Marston Recovery told The Guardian: 'In the spring of this year an issue was identified where some individuals with multiple unpaid road traffic penalties had been overcharged enforcement fees. The issue has been fixed. 'Letters, with cheques for a full refund plus interest at 8%, have been sent out to all of those affected. "Those letters include an apology and guidance on how to contact us if there are any questions or help is required.' It added: 'Since the issue first came to light, we have worked closely with the ECB … and all of our clients. "We take full ownership and have worked hard to do the right thing by repaying people back what they are owed.' It comes after The Sun revealed that Council Tax debt is "skyrocketing", with the use of bailiffs by councils having increased by an average of 13 per cent in the last year. How to get help with debt There are several ways you can get help to clear your debt to avoid bailiffs turning up at your door. Groups like Citizens Advice, StepChange and National Debtline can help you manage your debt and negotiate with your creditors. Citizens Advice says it's important to work out a budget and k eep an eye on your bank balance. Try and pay off more than the minimum on credit cards each month, and pay your most expensive credit card first. If you've got several debts and can't pay them all, it's important to prioritise. Your rent, mortgage, council tax and energy bills should be paid first, as the consequences can be serious if you don't pay. You should always have a look at what free options are available for managing debt before you turn to a private firm for support. There's also a government scheme to help manage debt called Breathing Space, which gives you the right to legal protection from creditors for up to 60 days. .
The Guardian
4 days ago
- Business
- The Guardian
Britain's biggest bailiff firm forced into refunds programme after overcharging
Britain's biggest bailiff company overcharged people it was pursuing for unpaid debts and has been forced to launch a refunds programme, the Guardian can reveal. Marston Holdings, which is used by companies and state-funded bodies including Transport for London to recover debts and fines, has apologised to consumers after overcharging 'enforcement fees' related to unpaid road traffic penalties it was chasing. The body that oversees the bailiff sector in England and Wales said the company's behaviour was 'unacceptable' and had breached regulations designed to protect the public from overcharging. In England and Wales, when a bailiff – or 'enforcement agent' – visits someone's home, a fixed fee of £235 is added to the debt. Sources said thousands of individuals may have been overcharged after the company added multiple enforcement fees to their debts. Marston did not say how many people may be affected but said fewer than 0.3% of its debtor caseload have been affected. Minutes of a trade body meeting last month – seen by the Guardian – stated that Marston was alerted to this issue in April, and that an investigation by an industry oversight body 'revealed breaches in multiple cases where more than one [£235] enforcement fee had been charged instead of the cases being linked under one fee'. Marston said 'the [systems] issue has been fixed' and refund cheques had been sent to 'all of those affected'. However, the minutes from last month's meeting said Marston had initiated a review of seven years' worth of cases, and the company was committed to rectifying the errors via a full refunds scheme, with a dedicated call centre, that would operate for three years. Marston works with dozens of local authorities as well as official bodies including TfL, HM Courts & Tribunals Service (HMCTS) and Highways England (now National Highways). It boasts of recovering 'over £850m each year on behalf of the taxpayer' and also works for private companies. TfL said Marston 'are not carrying out any enforcement work for us at the moment. Their contract is under review.' The UK bailiff sector is big business: every year, millions of people are on the receiving end of enforcement action, with data showing there were 8 million cases in 2024, with a total value of £5.2bn. In 2023 the Guardian reported that the profits of leading bailiff firms had seen risen to record levels during the cost of living crisis. It is estimated that well over half of the cases where bailiffs are called in involve unpaid road traffic and parking fines and penalties, including congestion charges and penalties relating to Ulez (ultra-low emission zone) and driving in a bus lane. Chris Nichols, the chief executive of the Enforcement Conduct Board (ECB), the independent oversight body for the bailiff sector in England and Wales, said: 'It is very concerning to see breaches of regulations that are there to protect the public from overcharging. 'This is unacceptable behaviour, and the ECB is taking strong action to ensure that people who have been impacted are found and refunded, and that this behaviour is never repeated. 'We have ensured that Marston has signed up to a robust action plan to put this right.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion In a refund letter sent by Marston Recovery – one of the group's brands – to one of those affected last month it apologised for a 'mistake' with the enforcement fees applied to the individual's debt, and said: 'We've now fixed this issue, and you're due a refund.' The letter included a reference to 'HMCTS' – however, Marston says the overcharging issue does not involve fines imposed by HMCTS and that an administrative error led to this wording not being removed. The letter included a cheque for a sum approaching £250, made up of a refund of £235, plus interest. Marston said the three-year period for the refunds scheme is a precautionary measure to account for scenarios such as this, and it would make every effort to reach everyone affected. Earlier this summer the government announced a package of measures designed 'to deliver a fairer system of debt enforcement'. A spokesperson for Marston Recovery said: 'In the spring of this year an issue was identified where some individuals with multiple unpaid road traffic penalties had been overcharged enforcement fees. The issue has been fixed. 'Letters, with cheques for a full refund plus interest at 8%, have been sent out to all of those affected. Those letters include an apology and guidance on how to contact us if there are any questions or help is required.' They added: 'Since the issue first came to light, we have worked closely with the ECB … and all of our clients. We take full ownership and have worked hard to do the right thing by repaying people back what they are owed.'
