Anonymous, Essex

For lenders, the enforcement of security and guarantees is not simply a back-end legal process to be activated when borrowers’ default.

It sits at the heart of prudent risk management, shaping both the lender’s approach to structuring facilities and the borrower’s understanding of their obligations.

A misstep can not only limit recovery but also expose a lender to legal challenge, regulatory scrutiny or reputational harm.

With growing regulatory oversight and increased borrower sophistication, lenders are expected to demonstrate that they have acted lawfully, proportionately and in good faith throughout the enforcement process.

That means carefully balancing the contractual and statutory rights available with wider considerations around fairness, market perception and long-term commercial relationships.

Security enforcement

Security in banking and finance is far from a one-size-fits-all approach and can take the form of fixed or floating charges, equitable charges or more bespoke arrangements.

When enforcement becomes necessary, lenders must consider existing legal frameworks, including the Insolvency Act 1986 and the Law of Property Act 1925, as well as the specific terms of the security instrument itself.

This is not just a box-ticking exercise. The appointment of receivers or administrators demands compliance with statutory notice requirements.

The complex hierarchy of priorities between secured and preferential creditors must be respected, whilst lenders will be held to the highest standard of good faith, with an obligation to achieve a proper price on any sale.

Failure to meet these duties exposes lenders not only to claims from borrowers but also to challenges from other creditors whose interests may be affected. Overlooking even a small procedural step can undermine enforcement and damage relationships.

By ensuring that security is properly structured at the outset and that enforcement strategies are designed with statutory and fiduciary duties front of mind, lenders can safeguard both recovery and reputation.

Guarantee enforcement

Personal and corporate guarantees are often a first line of protection, yet they are also the most frequently contested when defaults occur.

Courts will closely examine challenges raised by guarantors, which often include:

• Questions of capacity, such as whether a director had authority to bind the company or whether an individual had the mental capacity to consent.
• Technical defects in execution, including failures to meet statutory formalities under the Companies Act 2006 or the Statute of Frauds 1677.
• Variations to the underlying facility without the guarantor’s consent, which can discharge liability altogether.

Independent legal advice for guarantors, supported by clear documentary evidence, can help reduce disputes later.

Guarantees should be drafted to anticipate possible changes to the borrower’s obligations and executed with meticulous care.

Balancing legal and commercial considerations

Ultimately, enforcement is not only about legal rights. Lenders must weigh recovery prospects against the costs of enforcement, the potential reputational impact and the effect on ongoing commercial relationships.

By structuring securities and guarantees carefully at the outset, complying with statutory requirements and planning their enforcement strategy in advance, lenders can strengthen their position and maximise recovery while reducing the risk of challenge.

Palmers’ Banking and Finance team can provide tailored advice on structuring or enforcing security and guarantees for the banking sector and other lenders.

The first consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) came into force earlier this year.

This marks one of the most significant reforms to UK consumer law in over a decade and is already being felt by businesses across the UK.

The introduction of the new rules did not come with much fanfare, which is why any business dealing with consumers should look closely at how its goods and services are marketed: the Act brings stronger enforcement and tougher penalties for breaches.

Key changes under the DMCC

There are a number of important changes within the DMCC that consumer-facing businesses should now be abiding by:

• Direct enforcement powers for the CMA: The Competition and Markets Authority (CMA) can now investigate and determine breaches without court proceedings and impose fines of up to the higher of £300,000 or 10% of global turnover. Most cases will be handled through the CMA’s civil/administrative route; some consumer offences remain criminal and can still be prosecuted under existing legislation.
• Civil and criminal routes: Enforcement is primarily civil/administrative, but certain offences under the consumer protection regime remain criminal and may lead to prosecution.
• Banned/unfair practices: Certain practices are now clearly unlawful or will be treated as unfair, including commissioning or facilitating fake reviews and presenting prices that exclude unavoidable fees (often called “drip pricing”).
• Contracts and subscriptions: The DMCC introduces a new subscription contracts framework to improve clarity on pre-contract information, renewal/cancellation, reminders and transparency. Much of this regime requires secondary legislation and guidance and is not yet fully in force for most businesses.
• Enhanced Consumer Measures (ECMs): The CMA (and courts) can require businesses to provide redress, take compliance steps, or make changes that improve consumer choice.
• Online interface powers: The CMA can issue Online Interface Notices and, where appropriate, seek court Online Interface Orders requiring traders and, in some cases, relevant intermediaries (e.g., domain registries/hosts/search services) to remove or amend unlawful online content.

The CMA has indicated it will prioritise tackling the most harmful practises in its first year of using these powers. Likely areas of focus include:

• Hidden fees revealed late in the buying process
• Misleading or false information
• Aggressive or manipulative sales practices (especially targeting vulnerable consumers)
• Unfair or unbalanced contract terms
• Areas where the CMA has already acted, such as drip pricing and fake reviews

Why this matters for your business

Under the DMCC, fines are swifter, far larger and reputational damage can be significant.

Businesses should start reviewing their practices immediately, including:

• Contracts: Ensure terms are clear, balanced and compliant.
• Marketing and pricing: Check all promotions, reviews and pricing displays (including fees) against the new rules.
• Robust procedures: Introduce compliance checks for sales and marketing teams.
• Learning and development: Equip staff in customer-facing, marketing and compliance roles to understand the new regime.

If you would like advice on reviewing your contracts, policies or compliance systems in light of the DMCC, please contact the commercial law specialists at Palmers Solicitors.

The long-awaited Employment Rights Bill is now reaching its final stages in Parliament, with royal assent expected in late September or October.

This legislation represents one of the most significant overhauls of workplace rights in recent history, and employers should begin preparing now for the changes it will bring.

What are the key changes for employers

The Bill has been hotly debated, sent back and forth between the Lords and Commons, and is set to bring some significant changes including:

Unfair dismissal

The two-year qualifying period will be scrapped, making unfair dismissal protection a day-one right.

A statutory initial period of employment (probationary period) will apply, offering a more flexible framework for dismissals during this stage relating to capability, conduct, statutory restriction or some other substantial reason relating to the employee. It is thought that this will not apply to redundancy dismissals.

The details of the process that will be required during the initial period of employment have yet to be published, however it is expected that the initial period of employment will likely last around nine months as the government has already said its preference will be nine months. A consultation on this process is expected to be launched this, Autumn.

Employers will need to be preparing to update contracts to reflect these terms and ensure managers are trained to apply them fairly.

Harassment at work

Employers will be required to take all reasonable steps to prevent sexual harassment.

The new rules extend protections to whistleblowers and cover third-party harassment, while confidentiality clauses restricting employees from discussing harassment or discrimination will be banned.

Policies, contracts and risk assessments must be updated to ensure compliance. Employers will also need to carefully consider the content of any settlement agreements.

Flexible working

Employees will retain the right to request flexible working, but refusals on the existing permitted grounds must now be reasonable, explained and subject to consultation.

Managers will need training, and contracts should be reviewed to reduce the risk of tribunal claims.

Family rights

Paternity and unpaid parental leave will become available from day one. Although it should be noted that the government has not committed to making statutory paternity pay a day one right.

Dismissal during pregnancy, parental leave or within six months of returning to work will be unlawful except in limited circumstances. Regulations are awaited to define what these specific circumstances will be. A consultation is due to start in Autumn and it is expected these measures will come into force in 2027.

A new right to bereavement leave wider than the current parental bereavement leave, including for pregnancy loss, will also be introduced. Employers should review their handbooks and processes in line with these new rights.

“Fire and rehire”

The practice of dismissing staff to impose certain new terms will be classed as automatically unfair, except in circumstances of financial difficulty likely to affect the ability to carry on the business as a going concern.

There are also circumstances where dismissal to impose new terms which do not constitute a restricted variation will amount to unfair dismissal.

This change makes it vital for employers to build flexibility into contracts and consider any necessary changes carefully.

Collective redundancies

Thresholds will apply across the whole organisation, not just one site, as well as the trigger of 20 employees at one site. At present, it is not clear what the threshold number will be. Breaches of consultation duties could result in penalties of up to 180 days’ pay per employee which is double the current penalty.
Employers should review redundancy planning to ensure compliance.

Equality reporting

Large employers (250+ employees) will face new reporting obligations relating to the requirement to publish equality action plans showing what steps they are taking related to gender equality. These matters will include addressing the gender pay gap and supporting employees going through menopause. Regulations may make provision for the form and manner in which the plans are required to the published and the content of the plans.

The proposed Equality (Race and Disability) Bill includes a requirement for disability and ethnicity pay gap reporting but it is expected to be subject to significant consultation and will likely progress more slowly that the Employment Rights Bill.

Firms should prepare systems to gather and publish this data.

Zero-hours and irregular workers

Workers who consistently exceed their contracted hours for zero hours and low hours workers over a specified reference period, currently expected to be 12 weeks must be offered a contract reflecting those hours. This will apply for each reference period so it will keep needing to be offered. This places a significant burden on employers. there will be a consultation on what should amount to low hours for these purposes.

They will also gain rights to notice of shifts and compensation for cancellations. It is not clear currently what amount of notice or amount of compensation will be required.

Employers reliant on irregular hours contracts will need to adapt their rostering systems.

Statutory Sick Pay

Statutory sick pay will become a day-one right, with no earnings threshold. There will be a new system to provide fair earnings replacement for people earning below the current rate of SSP.

Preparing your business

The Bill has been met with concern across industry, with many employers highlighting the additional costs and administrative demands it will create. While some amendments have softened its impact, the reforms remain substantial.

If you would like tailored advice on how the Employment Rights Bill could affect your organisation, please contact our team.

Palmers Solicitors is pleased to announce the promotion of two of its lawyers, Kristie Willis and Jonathan Hol, to the role of Associate Solicitor, further strengthening the firm’s expertise in employment and commercial law.

Kristie Willis, who has more than seven years’ experience in employment law, has developed a strong track record in Employment Tribunal claims involving unfair dismissal and discrimination.

Since joining Palmers, she has played a key role in expanding the firm’s employment services for businesses, including hosting a recent webinar on the impact of AI in the workplace.

Jonathan Hol began his legal career in South Africa in 2008 before qualifying in the UK and now focuses on company commercial matters and contracts.

He has been instrumental in developing Palmers’ commercial services, advising businesses on everything from contracts to corporate governance.
Palmers has a long history of nurturing talent within its team to ensure continuity and high-quality service for clients.

Gina Newman, Chief Operations Officer at Palmers Solicitors, added:
“These promotions reflect the outstanding contributions Kristie and Jonathan have made to our clients and our firm.

“Their expertise and leadership will be key to the ongoing expansion of our commercial and employment services.”