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Controlled Goods Agreement – Everything You Need To Know 2022

controlled-goods-agreement

For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.

A Controlled Goods Agreement is made between you and the bailiffs to help stop them from taking the possessions they have control of. Bailiffs take control of your goods when they enter your home. They create an inventory containing all the items in the home they want to take and sell.

Below I’ll share information on what a controlled goods agreement is when they are created and everything you need to know about them. I’ll also go into detail on what happens if you break a controlled goods agreement.

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What is a Controlled Goods Agreement?

A controlled goods agreement is a contract created between the bailiff and the person named on the debt. The purpose of the controlled goods agreement is to allow the debtor the right to keep the goods the bailiff has control of providing they promise to pay off the debt following an agreed payment plan.

If the bailiffs have gained control of your belongings, setting up the controlled goods agreement will help you to keep your things. You must stick to any repayment schedule created or the bailiffs can come and remove the goods on the inventory. Once the bailiffs remove the goods, they will be sold to raise the money needed to clear the debt.

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Do I Have to Agree to a Repayment Plan?

The only way to set up a controlled goods agreement is to reach an agreement of repayment with the bailiffs. The payments must be paid regularly and on time to avoid breaching the contract.

Use a budgeted tool, such as the free monthly budget tracker I have made available for free to download. Use it to work out how much income you have coming in, and how much you spend on outgoings. The outgoings should include everything from other debt payments and the cost of living. You can ask for time to gather this information. It’s wise to complete your budget before seeing or talking to the bailiffs. This will give you the time to gather all your information and ensure nothing is missed.

After creating your budget, use it to work out how much money you can afford to pay to the bailiffs. Ensure it’s a price you’re confident you can maintain. Don’t feel pressured to agree to a repayment plan you can’t afford. Use your budget form to show how much you can repay and why it’s that amount.

You can request making the instalments in weekly or monthly instalments. Choose the one that works best for you. If the bailiffs refuse you have the right to make a complaint against the bailiffs.

Do I Have to Sign a Controlled Goods Agreement?

You will have to sign a controlled goods agreement for it to be valid. However, you must take your time to ensure the information is correct. Don’t let the bailiff rush you to sign until you have read the inventory list. Check it is accurate and doesn’t contain any items that the bailiffs can’t take. I have more information worth reading about dealing with bailiffs, and it’s important to know what a bailiff can’t take from your home. Here’s a quick outline:

  • Items that don’t belong to you
  • Your children’s belongings
  • Things that are needed for work or study, to a fixed value of £1350. These items include computers and computer equipment, vehicles, and tools.
  • Mobility vehicles or vehicles with a valid Blue Badge
  • Pets
  • Things you need to live that cover your basic needs

Read all the documentation. Before you sign check the figure shown for the debt you owe. Ensure it’s correct along with any other fees that the bailiffs add. The repayment agreement should be detailed, confirm this is accurate. Finally, check your name and address are right and double-check the inventory for good measure. The agreement doesn’t become valid until you sign it. You can refuse to sign if any of the information is incorrect.

Can a Bailiff Take My Belongings if I Don’t Sign the Controlled Goods Agreement?

Bailiffs can take your belongings if you don’t sign the controlled goods agreement. You don’t have to sign the controlled goods agreement if you don’t agree to the repayment schedule or the inventory. You can also refuse if any of the information is incorrect.

Breach of Controlled Goods Agreement

You become in breach of a controlled goods agreement if you fail to follow the payment plan created in the contract. If you breach the contract the bailiffs will turn up at your home to take the goods on the inventory. The bailiffs must give you 2 days’ notice if they intend to come and re-enter your home.

You’ll be informed via a notice of intention to re-enter. Check the notice contains the correct information. It should have your correct name and address and tell you how you breached the controlled goods agreement. If you find a mistake you must contact the bailiff company immediately.

Can a Bailiff Force Entry if I Breach the Controlled Goods Agreement?

Bailiffs can use reasonable force to enter your home if you breach the controlled goods agreement. If you don’t let them in, they can use a locksmith to gain entry. They aren’t allowed to break down the door or smash windows to get in.

Can I Stop the Bailiffs After a Notice of Intention to Re-Enter?

You might be able to stop bailiffs from coming to your home after a Notice of Intention to Re-enter is received. Contact the bailiff company as soon as you get the notice. Explain why you missed the payment due and request more time to pay. You could also make a new offer to repay the debt. They don’t have to agree, but it is worth trying. You can also contact a debt advisor if the bailiffs refuse to give you time.

Read the articles I’ve suggested below to learn more about bailiffs and your rights. Contact a debt advisor if you are struggling with bailiffs to gain support and knowledge to help protect you.

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