What's the difference between public and private debt recovery?
Many people assume that all debt recovery works in the same way. In reality, there are important legal differences between recovering money owed to a public body, such as a council or the courts, and collecting a debt owed to a private business. Understanding these differences helps explain why public sector debt recovery follows a statutory legal process and why certificated enforcement agents may become involved.
Public debt and private debt are not the same
Commercial debts usually arise because an individual has chosen to purchase goods or services on credit, borrow money or enter into a financial agreement with a private company.
Public debts are different. They arise because the law requires them to be paid, rather than because someone has chosen to enter into a commercial agreement.
Examples of these include:
Many of these debts exist to fund public services or enforce legal responsibilities, rather than as part of a commercial transaction.
Public bodies cannot choose who they provide services to
Private businesses can usually decide who they do business with and may refuse further credit if payments are not made.
Public bodies do not have that choice.
For example, local authorities must continue to provide many essential services regardless of whether someone has kept up their Council Tax payments. They also have legal responsibilities to collect public money fairly and consistently on behalf of all taxpayers.
Recovering unpaid public debt helps protect public finances, supports essential local services and helps ensure that the financial burden does not fall unfairly on those who have already met their legal obligations.
Different legal processes apply
Public sector debt recovery follows a statutory legal process.
Before a debt reaches the enforcement stage, creditors, such as local councils, government departments, or the courts in the case of unpaid fines, will have already taken several steps to collect the debt. The courts will also have assessed an individual’s circumstances and decided what they need to pay. Depending on the type of debt, recovery action may include reminder notices, statutory notices, court proceedings or obtaining a liability order or warrant of control. Debt collection agencies do not have the same statutory enforcement powers.
Who do enforcement companies work for?
Enforcement companies act on behalf of local authorities, government departments, the courts and other public bodies to recover unpaid statutory debts and enforce court orders. They do not purchase debts, decide whether a debt is owed or choose which cases to enforce. Their role begins only after the creditor who is owed the debt has completed the legal process and obtained the necessary legal authority, such as a liability order or warrant of control. Enforcement companies must then carry out enforcement in accordance with the law.
The role of certificated enforcement agents
Certificated enforcement agents are authorised by the County Court to take control of goods in England and Wales. Their role is to enforce court orders and other legally authorised debts in accordance with the law. They are instructed to seek payment in full or take control of goods in lieu of payment that can be sold at auction. They are not debt collectors and do not decide whether a debt is owed. However, they are often able to negotiate and set up payment arrangements to clear debts in instalments.
Before receiving their certificate, an enforcement agent must satisfy the court that they are a fit and proper person to undertake the role, have sufficient knowledge of the law and procedure, and hold the required security bond. Enforcement agents must renew their certificate every two years in the presence of a judge.
Early engagement is encouraged
The aim of enforcement is to resolve debts as early as possible.
Following legislative changes introduced in May 2026, individuals now have 14 clear days during the Compliance Stage to seek advice, make payment or discuss their circumstances before further enforcement action may take place. This can be extended by a further 14 days if the person seeks advice from a qualified debt adviser.
Many cases are resolved during this stage without the need for a visit from an enforcement agent. Early contact also gives people an opportunity to explain any financial difficulties or circumstances that may affect how the case is managed.
Protecting vulnerable people
Public sector debt recovery recognises that some people may be experiencing financial difficulty or other circumstances that make it harder for them to engage. However, vulnerability may not mean a person does not have to pay their debt.
CIVEA members are expected to follow the Enforcement Conduct Board's Standards for Enforcement Firms and Enforcement Agents, including the Vulnerability and Affordability Standards. These standards help ensure that potential vulnerability is identified at the earliest opportunity, appropriate support is considered and enforcement is carried out fairly and proportionately.
Statutory enforcement fees
Unlike many commercial debt recovery firms which add interest, enforcement fees are set by legislation.
The statutory fee structure is designed to encourage early engagement and reflects the work required at each stage of enforcement. Responding promptly to a Notice of Enforcement can help prevent additional fees from being added. Further information about the fees enforcement companies can charge can be found here.
Can I stop an enforcement company from contacting me?
Some websites and online forums suggest that sending a ‘cease and desist’ notice will stop an enforcement company from contacting you. It is understandable to want contact to stop if you feel worried or overwhelmed, but in most civil enforcement cases this type of request does not pause or cancel the legal enforcement process.
Where an enforcement company has been lawfully instructed to recover a debt, it must continue to follow the legal process on behalf of the creditor. A request to stop contact does not remove the debt, cancel the legal authority for enforcement, or prevent the enforcement company from taking steps it is legally entitled or required to take. However, you can still contact the enforcement company to explain your circumstances and ask what options may be available.
Council Tax liability is set by law and does not depend on personal consent, a contract with the council, or a person describing themselves as a ‘freeman’. If Council Tax is not paid, the council can take recovery action through the courts. Some websites and online forums suggest otherwise, but these arguments have repeatedly been rejected by the courts. Relying on them can delay engagement and result in additional enforcement action or statutory fees, as well as expensive legal costs. If you believe the Council Tax bill is wrong, or you are unsure whether you are liable, seek advice from the council, an independent advice organisation or a qualified legal adviser as soon as possible.
If you are experiencing financial difficulties or have circumstances that may affect your ability to pay, it is usually better to engage with the enforcement company and discuss your circumstances as soon as possible. This allows your circumstances to be considered and, where appropriate, payment options or additional support to be discussed.
Understanding the difference
Although both enforcement agents and debt collection agencies a seek to recover money that is owed to them, their legal frameworks, responsibilities and objectives are different.
Public sector debt recovery is designed to recover statutory debts fairly, protect public funds and support essential public services. It also includes safeguards to ensure that people in vulnerable circumstances are treated appropriately.
Understanding how public sector debt recovery works can help people respond promptly, seek independent advice where appropriate and resolve matters at the earliest opportunity. Early engagement with the process often provides the greatest opportunity to avoid additional enforcement action and costs.
For general enquiries only, you can contact us by email at info@civea.co.uk.
CIVEA is unable to consider complaints about its members. If you have a complaint or concern about one of our members, please go to our complaints page for more information.
