Controlled goods agreements: should you sign one?

What is a controlled goods agreement?

When a bailiff (enforcement agent) takes control of your goods, they can either remove them straight away or leave them with you. If they leave them, it’s usually under a controlled goods agreement (previously known as “walking possession”).

Under the agreement, you:

• accept that the listed goods have been taken control of
• agree not to sell, move or dispose of them
• agree to repay the debt (including fees) on set terms

In return, the bailiff leaves the goods with you while you keep to the agreement. It must be in writing and signed by you (or someone authorised to sign for you), and you should be given a copy along with an inventory of the goods.

Why it matters: the right to re-enter

This is the most important thing to understand. Normally, bailiffs collecting council tax, parking penalties and most civil debts can’t force entry to your home – read can bailiffs force entry?

But if you break a controlled goods agreement, for example by missing a payment, the bailiff can return to collect the goods listed in it. After giving you notice of their intention to re-enter, they can use reasonable force to get in if necessary. A controlled goods agreement can therefore turn a situation where bailiffs can’t get in into one where they can.

Before you sign: five questions to ask

1. Can I afford these payments every month, after rent or mortgage, current council tax, energy, food and travel?
2. What exactly is listed? Check the inventory. Are any items exempt (such as essentials or work tools up to £1,350) or owned by someone else? Read what can bailiffs take?
3. What fees have been added? Ask for a breakdown and check them against our bailiff fees calculator.
4. How did they get in? If they entered unlawfully, the agreement may be challengeable.
5. Do I have other options? Could the creditor take the debt back? Could you get Breathing Space or a formal debt solution?

If the payments aren’t affordable

Bailiffs may push for high payments to clear the debt quickly. StepChange research found that around half of its clients who’d faced bailiff action felt pressured into repayment plans they couldn’t afford. If that’s you:

• say no, politely, and explain what you can afford, in writing, with a budget
• contact the creditor (often the council) and ask it to agree a lower amount or take the debt back
• get advice – an adviser can negotiate for you or apply for Breathing Space

A smaller plan you can keep is far better than a bigger one you’ll break.

If you’ve already signed

• Keep a copy of the agreement and inventory.
• Pay on time. If you’re going to miss a payment, contact the bailiff company before the due date to explain and agree a change.
• Don’t sell or move the listed goods.
• Get advice if the payments have become unaffordable. A Debt Relief Order or IVA can stop bailiff action for the debts included, and the bailiff should then stop enforcing the agreement.

Controlled goods agreement vs a simple payment arrangement

If you’re at the Notice of Enforcement stage, a simple payment arrangement agreed before any visit is usually much better for you. Read Notice of Enforcement explained.

Warning signs of an unfair agreement

• The bailiff won’t tell you the total amount, or the fees don’t match the legal fee scale.
• You’re told you must sign immediately or they’ll “break in” – for most debts, that’s not true.
• The inventory includes items that are exempt or belong to someone else.
• The payments would leave you unable to pay your rent, council tax, energy or food.

If any of these apply, don’t sign. Ask for the details in writing and get advice, or complain.

Frequently asked questions

Do I have to sign a controlled goods agreement?

No. But if you don’t, and the bailiff has lawfully taken control of goods, they can remove them. Get advice on the best option for you.

Can my partner or teenager sign a controlled goods agreement?

It should be signed by the debtor, or by someone authorised to act for you. A child can’t sign one. If someone signed without authority, get advice.

What happens if I miss one payment?

The bailiff may treat the agreement as broken and return to collect the goods, after giving notice. Contact them before the payment is due if you’re struggling.

Can bailiffs take more than what’s listed?

On re-entry, they’re returning for the goods they’ve already taken control of. If they want to take other goods, the usual rules apply.

Is a controlled goods agreement the same as a payment plan?

Not quite. A simple payment arrangement doesn’t usually involve goods. A controlled goods agreement means specific goods have been taken control of, which gives the bailiff extra rights if you break it.

Sources

• Tribunals, Courts and Enforcement Act 2007, Schedule 12
• The Taking Control of Goods Regulations 2013
• GOV.UK, Bailiff powers when they visit your home
• StepChange, Council tax arrears research