The claims e-revolution

After hearing sO many horror stories of failed government IT projects it is refreshing to be able to report on two areas of successful electronic business, Money Claim Online (MCOL) and its progeny, Possession Claim Online (PCOL).

Lodge the papers

In 2004 HMCS launched an internet website it had developed and piloted to handle straightforward money or 'debt' claims. Previously, claimants or their lawyers (who were not geared up to handling bulk claims) had two choices as to how to issue those claims. They either had to visit a county court to lodge the papers and pay the court fee, or post the papers to the court and hope they got it right. Woe betide anyone who made any mistake. The papers would be rejected (often days later) to be corrected and then relodged.

The only procedure to issue claims electronically was reserved to high volume debt collection organisations using a long established bulk data file transfer route to the County Court Bulk Centre (CCBC) at Northampton. CCBC had been an established route for regular high volume issuers for two decades and provided an efficient, guaranteed service. Data files are sent for claim issue, judgment and warrant of execution requests and these are processed the same day.

The court fees are cheaper as an incentive (a saving of between £15 '“ £80). As only around 5 per cent of this debt work is defended, CCBC provides a fast guaranteed level of service at much relief to local courts who no longer have to enter case details manually into their computer system. However, CCBC is not just for the high volume issuers. Several IT software firms now include for free a CCBC module and this will eventually become the industry standard.

Straightforward civil claims

MCOL changed that. It was a winning formula from the start; a simple, informative, well-designed website aimed at for the sole purpose of issuing straightforward civil claims in a limited number of circumstances. It was not going to change the world or be an all-singing, all-dancing method of issuing every kind of myriad process with which the courts deal. MCOL provides an internet option for those who issue claims, but do not have the IT capability.

It is far more convenient to do this online from the comfort of the office or home without the need to visit the local court. In addition, the court fees are also cheaper (a saving of between £15 '“ £80).

MCOL is regulated by CPR 7.12 and its Practice Direction PD 7E. The service is limited to straightforward money claims of less than £100,000. Some categories of claimant or defendant are excluded. The service discourages prolixity by limiting particulars to 1,080 characters (approximately 14 lines of printed text). Claims are issued by Northampton County Court and proceed there until defended. Only enforcement by bailiff is available online. The MCOL website has an excellent online user guide and there is a helpdesk at Northampton for MCOL customers.

Housing possession claims

PCOL was designed for the electronic issuing of housing possession claims and is the relatively 'new kid on the block'. Like MCOL, its users benefit from considerably reduced fees (a £50 saving) on the issue of proceedings.

There are two eRoutes '“ via the web where all details are entered directly by the claimant where the fee is then either paid by either debit or credit card, or, where the claimant is an organisation such as a solicitor or social landlord by direct debit. This is in addition to the bulk data file transfer route which is already being used by high volume firms.

Some district judges have already decided to disallow the full court fee where, in their opinion, the case should have been commenced through PCOL: their view is that the claimant made the choice to issue manually although there is a cheaper online alternative and, again, their view is that the claimant, not the defendant, should bear the additional cost.

The defendant is not left out of the eRoute. Where the claim is commenced through either CCBC or MCOL, the defendant can respond with the courts via MCOL. This again is quicker and more convenient. Where a claim is defended, the claim is transferred to the appropriate local court.

Details of PCOL and its procedures can be found in CPR Part 55.10A and the Practice Direction 55B. Only limited housing possession claims are eligible and claims are issued in the specified courts. Defences and counterclaims can also be lodged online.

PCOL and MCOL have quickly become a great success story. At present, over 50 per cent of eligible possession claims are commenced directly by claimants through PCOL. This not only saves court staff time, it also provides a quicker service to HMCS's customers. And 68 per cent of money claims proceed through CCBC or MCOL and the target is 70 per cent by the end of the financial year.