Robert Thompson, chair of the CCUA (whose membership issue about 85% of all civil money claims), gave a scathing response this week to the Ministry of Justice (MoJ) ‘Consultation on alignment of the fees for online and paper civil money and possession claims’, which ends on 30 December.
According to the MoJ, the alignment would ‘simplify our fee structure’, and raise an estimated £12m-£33m per annum from 2022/23 onwards, while ensuring that those who may not be able to access online services are not charged more for using the paper route. Moreover, it would help fill the financial gap between the annual net fee income of £724m against the £2bn running costs of HM Courts and Tribunals Service (HMCTS).
However, Thompson said these figures were ‘misleading’ as they related to the whole service, including family and criminal courts, whereas the proposal was to increase civil claim fees only. He said HMCTS had previously confirmed to the CCUA that, in 2018/19, civil claim fees produced £561m while providing the service cost £475m.
Thompson said: ‘It is not right that court users currently pay more than the service costs, only to then receive a sub-standard service, whilst the additional sums are spent elsewhere.
The highest fee for simply issuing a claim form stands at £10,000, calculated upon the size of the claim. Fees of this size for such a simple procedural step are simply unjustifiable on any basis.’
He warned the proposals would encourage legal action against someone who owes a small amount of money but discourage it where large sums were involved. He said this restriction on access to justice would create extra cost for UK business and, ultimately, the consumer.
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