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Question Title: Attachment of earnings
| Question: 377 |
| A colleague of mine has been saying that he recovered some arrears of rent from a former tenant by getting the tenant's employer to pay him. He said that it was called an attachment of earnings order. What are they and how can I get more information about them ?
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| Answer: |
| Attachment of Earnings Orders (AEOs) are a useful means of recovering amounts due under a court order through deductions from the employee's salary. The employer administers these orders through their payroll system. The Courts Act 2003 and the Attachment of Earnings Act 1971 allows a court to order an employer or their company to make deductions from the earnings of an employee to recover unpaid amounts from court orders. The AEO is a particularly important device for landlords and agents when trying to collect and enforce rent arrears. Firstly, whilst other methods of debt collection require that the tenant's current address is known, the AEO is enforced through the tenant's current employer - whose address may be known to the landlord or agent even if the tenant has departed and left no forwarding address. Secondly, the mere threat of collecting rent arrears via this method is often successful where the tenant does not want to suffer the potential embarrassment of the courts making contact with his employer. An AEO made under these provisions tells the employer the total debt owed by the employee; how often the employer should make a deduction (usually weekly or monthly) and the amount to deduct each week or month. This is called the normal deduction rate (NDR). The amount below which you must not make a deduction, the protected earnings rate (PER) will also be specified. The availability of these AEO recovery provisions through the courts leads to reduced credit risks when letting to a tenant with a stable long-term employment history with the same employer. It also highlights the importance of recording employment details on the tenant's application forms, and verifying them on a regular basis (perhaps each time a tenancy is renewed) or whenever the landlord has knowledge that the tenant has changed his employment. Further information on the AEO process is available from the Court Service or your local County Court: www.hmcourts-service.gov.uk
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