What Are Controlled Goods Agreements?
What Are Controlled Goods Agreements?
A Controlled Goods Agreement is a formal, legally binding contract used by bailiffs (also known as enforcement agents) in England and Wales when recovering certain types of debts, such as council tax arrears, court fines, or unpaid business rates. This agreement forms part of the bailiff seizure process, which is governed by the Taking Control of Goods Regulations 2013.
How Controlled Goods Agreements Work
When a bailiff visits your property to collect a debt, they have the legal right to take control of certain belongings – these are called ‘goods’ – to secure repayment. However, instead of removing these items immediately, the bailiff may offer you the option to enter into a Controlled Goods Agreement.
By signing this agreement, you acknowledge that the bailiff has taken control of specific goods listed in the document, but you are allowed to keep them at your home for the time being. In return, you promise to pay the outstanding debt, usually in instalments or by a set deadline. The agreement will detail:
- The goods that are now under the bailiff’s control (often including items such as televisions, vehicles, or valuable electronics)
- The total debt owed and the repayment schedule
- The consequences if you fail to stick to the agreed payment terms
The Purpose of a Controlled Goods Agreement
The main aim of a Controlled Goods Agreement is to give you a final opportunity to pay your debt without having your belongings taken away straight away. It acts as a safeguard for both you and the creditor: you avoid the immediate loss of your possessions, while the creditor has reassurance that the debt will be settled, or the goods can be removed and sold if you default.
How the Agreement Is Made
A Controlled Goods Agreement is usually created during a bailiff’s visit to your home or business. The bailiff will inspect your property, identify suitable items, and list them on the agreement. You’ll be asked to sign the document to confirm you understand and accept its terms. You should always read the agreement carefully before signing, and make sure you receive a copy for your records.
If you refuse to sign, the bailiff may have the right to remove goods immediately to cover the debt. However, if you stick to the payment plan set out in the agreement, your goods will remain with you.
Controlled Goods Agreements are a crucial part of the enforcement process, so understanding your rights and obligations under these contracts is essential. For more information on how bailiffs can take and sell goods to recover debts, see our guide to the bailiff seizure process.
How Controlled Goods Agreements Work
How Controlled Goods Agreements Work
When a bailiff (also known as an enforcement agent) visits your home or business to collect a debt, they may use a Controlled Goods Agreement (CGA) as part of the enforcement process. Here’s what typically happens, step by step:
1. Identification of Goods
The bailiff will first identify and list items on your premises that could be sold to pay off your debt. This process is sometimes called "taking control" of goods. The bailiff will walk through your property and make a record of belongings they consider valuable and eligible for seizure. Not all items can be included – there are strict rules about what bailiffs can take, such as excluding essential household items and goods belonging to someone else.
2. Signing the Agreement
After listing the goods, the bailiff will ask you to sign a Controlled Goods Agreement. By signing, you acknowledge that the bailiff has taken control of the listed items, but you are allowed to keep them at your property for the time being. This is a legally binding document under the Taking Control of Goods Regulations 2013.
3. What the Agreement Means Legally
Once signed, the agreement gives you temporary possession of the goods but restricts your ability to sell, remove, or dispose of them. If you do not sign, the bailiff can remove the goods immediately. The agreement does not mean your debt is cancelled; instead, it sets out a payment plan or deadline for settling the debt.
4. What Can and Cannot Be Included
Only certain goods can be listed in a CGA. Bailiffs cannot take items that are essential for basic living (like bedding, clothing, and basic kitchen equipment), tools of your trade up to a certain value, or items that belong to someone else. For a full list, see what bailiffs can take.
5. Protection from Immediate Removal
A key feature of a Controlled Goods Agreement is that it protects your belongings from being taken away straight away. As long as you stick to the terms – usually by making agreed payments – the goods remain in your home. However, if you break the agreement, the bailiff can return and remove the listed items for sale.
6. Your Obligations Under the Agreement
By entering into a CGA, you must:
- Make payments as agreed in the schedule set out in the document.
- Not sell, hide, or give away any of the controlled goods.
- Allow the bailiff reasonable access to inspect or remove the goods if you default.
Failure to comply with any of these obligations can result in the bailiff returning to remove the goods without further notice.
Practical Advice
If you’re unsure about signing a Controlled Goods Agreement or want to know more about protecting your belongings from bailiffs, it’s important to seek advice before taking action. Remember, signing a CGA is a serious legal step, but it can give you time to pay and avoid immediate loss of your possessions. Always read the agreement carefully and make sure you understand your rights and responsibilities.
Your Rights and Responsibilities Under a Controlled Goods Agreement
Your Rights and Responsibilities Under a Controlled Goods Agreement
When you enter into a Controlled Goods Agreement with bailiffs (also known as enforcement agents), it’s important to understand both your rights and your obligations. This agreement is a formal document that lists the belongings bailiffs have taken control of to recover a debt, but allows you to keep and use them as long as you stick to the terms set out – usually a payment plan.
Your Rights
- Right to Keep Possessions (If You Pay as Agreed): As long as you make the agreed payments on time, the bailiffs cannot remove the controlled goods from your home. You can continue to use these items in your daily life.
- Right to Fair Treatment: Bailiffs must follow strict rules when entering your property and handling your belongings. They cannot take essential items such as basic clothing, household goods, or items needed for your work or study.
- Right to Clear Information: The agreement must clearly list all the items taken into control and specify the payment terms. You should receive a copy of the agreement.
- Right to Seek Advice: You are entitled to seek free, independent debt advice at any point. The Consumer Credit Act 1974 outlines your rights and protections when dealing with certain types of debts and enforcement action.
Your Responsibilities
- Keep Up With Payments: It’s your responsibility to pay the amounts set out in the agreement, on time and in full. Missing payments or paying late can put your goods at risk.
- Do Not Sell or Remove Controlled Goods: You must not sell, hide, or give away any of the goods listed in the agreement. Doing so could be considered a criminal offence.
What Happens If You Miss Payments or Break the Agreement?
If you miss a payment or otherwise break the terms of the Controlled Goods Agreement, the bailiffs have the right to take further action. This usually means they can return to your property – often without further notice – to remove and sell the controlled goods to repay the debt.
Bailiffs must still follow the correct procedures when entering your home and removing goods. They cannot use force to enter a residential property on their first visit, but if you break the agreement, they may be able to use reasonable force (for example, using a locksmith) on subsequent visits.
Communicating With Bailiffs and Negotiating Payment Plans
If you’re struggling to keep up with payments, it’s vital to contact the bailiffs as soon as possible. Ignoring the problem can lead to the removal and sale of your belongings. Instead, explain your situation and see if you can agree on a new payment plan that you can afford. For practical advice and step-by-step guidance, see our page on negotiating payment plans with bailiffs.
Remember, you have the right to seek independent debt advice at any time. The Consumer Credit Act 1974 offers further information on your rights and the protections available to you.
By knowing your rights and meeting your responsibilities under a Controlled Goods Agreement, you can better manage the situation and avoid further enforcement action. If you’re unsure about any part of the process, don’t hesitate to get advice from a reputable organisation.
What Happens If You Don’t Keep to the Agreement?
When you enter into a Controlled Goods Agreement with bailiffs, you’re agreeing to repay your debt according to specific terms – usually through a payment plan – while your belongings listed in the agreement remain under their control. If you fail to keep to the agreement, such as by missing a payment or not following any other agreed terms, there can be serious consequences.
What happens if you break the agreement?
If you don’t keep up with the payments or breach the agreement in any way, the bailiffs have the legal right to take further action. This typically means they can return to your property – sometimes without giving notice – to remove the goods listed in the Controlled Goods Agreement. Once removed, these items may be sold at auction to help pay off your debt.
This process is governed by the Taking Control of Goods Regulations 2013, which set out the rules for how bailiffs can act. Bailiffs can only remove and sell items that were included in the original inventory, and they must follow strict procedures when entering your property and handling your belongings.
Legal and financial consequences
If your goods are sold, the proceeds will go towards settling your debt, but you may still be liable for any remaining balance if the sale doesn’t cover the full amount. On top of this, you could face additional fees for enforcement action, storage, and sale costs. These extra charges can quickly add up, making your financial situation even more difficult.
In some cases, failing to cooperate with bailiffs or attempting to hide or dispose of controlled goods can lead to further legal action. This may include a court order or, in rare cases, criminal proceedings.
How to avoid these outcomes
To prevent your belongings from being removed and sold, it’s vital to stick to the terms of your Controlled Goods Agreement. If you know you’re going to miss a payment or are struggling to keep up, contact the bailiff or the creditor straight away. They may be willing to negotiate a revised payment plan or give you more time.
Seeking independent debt advice as early as possible can also help you understand your options and avoid escalating enforcement action. Keeping communication open is key – ignoring the situation will only make things worse.
For more details on what happens if bailiffs proceed to remove and sell your belongings, see our guide on bailiff seizure.
How Controlled Goods Agreements Fit Into Debt Recovery
When a debt remains unpaid, one method creditors may use to recover what they are owed is through the bailiff seizure and sale of goods. In this process, a bailiff (also known as an enforcement agent) visits your home or business and takes control of certain belongings with the intention of selling them to pay off your debt. However, this action is strictly regulated, and there are steps in place to protect both creditors and debtors.
A key part of this process is the Controlled Goods Agreement (CGA). Instead of removing your possessions straight away, a bailiff may ask you to sign a CGA. This is a formal, legally binding document that lists the items they have taken control of, but allows you to keep them in your home as long as you agree to a payment plan and stick to its terms. The agreement is governed by The Taking Control of Goods Regulations 2013, which set out the rules for how bailiffs must act and what your rights are.
A Controlled Goods Agreement can be a useful tool for managing your debt. By signing one, you avoid the immediate removal and sale of your possessions, giving you time to pay off what you owe in instalments. However, it is crucial to understand that if you break the agreement – for example, by missing a payment – the bailiff can return and may remove the listed items to sell them.
Understanding your options and rights is essential before signing a CGA. You have the right to see a full inventory of the goods listed and should only sign if you agree with what is included. If you are unsure about any part of the agreement, ask questions or seek advice before proceeding.
For a broader look at how this fits into the overall enforcement process, see our guide to bailiff seizure and sale of goods. If you want to read the official rules and procedures in detail, refer to The Taking Control of Goods Regulations 2013. Understanding these regulations can help you make informed decisions and protect your interests when dealing with debt recovery actions.
Related Issues and Further Help
When dealing with a Controlled Goods Agreement, it’s common to have questions about related issues and where to find support. Understanding these areas can help you protect your rights and make informed decisions.
Vehicle Seizure by Bailiffs
Bailiffs aren’t limited to household items – they can also take control of vehicles if you owe a debt. If you rely on your car for work, or if it’s on finance, there are important rules about what bailiffs can and cannot do. Learn more about vehicle seizure by bailiffs so you know your rights if your car is at risk.
Identifying and Avoiding Fake Debt Collectors
Not everyone who claims to be a bailiff or debt collector is genuine. Scammers can use threatening tactics or demand payment for debts you don’t owe. Always check official identification and never hand over money or personal details unless you’re sure you’re dealing with a legitimate agent. For tips on spotting scams and protecting yourself, see our guide on fake debt collectors.
Managing Debts: Mortgage Arrears and Income Protection
Controlled Goods Agreements are just one part of debt recovery. If you’re struggling with mortgage arrears, your home could be at risk, so it’s vital to seek help early. In addition, considering income protection insurance can provide a safety net if illness or job loss affects your ability to pay debts.
Protecting Your Belongings and Getting Help
It’s important to know what bailiffs can and cannot take, and how to secure your possessions. For detailed advice on your rights and practical steps to keep your property safe, read our page on protecting your belongings from bailiffs.
If you’re unsure about anything, don’t hesitate to seek independent debt advice. Specialist organisations can guide you through your options and help you negotiate with creditors or bailiffs. Taking action early often makes a big difference in resolving debt issues and reducing stress.
