Controlled goods agreement
A controlled goods agreement is used to secure the debtor’s goods when the enforcement agent leaves them at the debtor’s premises during enforcement. It was previously known as a walking possession agreement, and was amended as part of the Taking Control of Goods Regulations 2013 and Part 3 of the Tribunals, Courts and Enforcement Act 2007.
Leaving controlled goods at the debtor’s premisesWhen an enforcement agent (EA) attends a debtor’s premises, his objective will be to obtain payment in full; however, that is not always possible and the EA may take partial payment and an arrangement for payment of the balance in one or more installments. When this happens, the EA will take a detailed inventory of the goods he will take into control, which he estimates are likely to raise sufficient funds when sold at auction to pay the debt, judgment interest, court fees and enforcement fees. If the EA has reason to believe that the goods are in jeopardy, he may remove them, but in many cases, he will leave them with the debtor. If this is the case, the debtor will be required to sign the controlled goods agreement. Under the controlled goods agreement, the debtor agrees to not remove or dispose of the goods, or to allow anyone else to do so. It is a criminal offence to interfere with controlled goods.
The details of the controlled goods agreementThe controlled goods agreement must be in writing and containing the:
- Name and address of the debtor
- Reference number and date of the agreement
- Name of the persons entering into the agreement
- Contact details for the EA and hours when he, or his office, may be contacted
- Detailed inventory
- Terms of the payment arrangement agreed between the EA and the debtor
- The debtor
- A person authorised by the debtor
- The person in apparent authority