FINANCIAL AND ECONOMIC ASPECTS OF PRIVATE ENFORCEMENT OFFICERS’ ACTIVITIES: TARIFICATION AND PAYMENT FOR SERVICES

Abstract

The article provides a comprehensive analysis of the financial and economic aspects of the functioning of the institute of private enforcement officers in Ukraine with particular emphasis on tarification issues and payment mechanisms for services. The normative-legal framework for regulating private enforcement officers’ tariffs is examined, including analysis of the provisions of the Law of Ukraine “On Bodies and Persons Who Carry Out Compulsory Execution of Court Decisions and Decisions of Other Bodies” and corresponding by-laws. The foreign experience of tarification of private enforcement officers’ services in European Union countries is analyzed, particularly the French model of “huissiers de justice” with state regulation of tariffs, the German system with a flexible approach to pricing, and mixed systems of Baltic countries.The cost structure of private enforcement officers is examined in detail, which includes fixed costs for office maintenance, staff salaries, professional liability insurance, and variable costs related to the execution of specific cases. Economic justification of tariffs is conducted taking into account the ratio of income and expenses, establishing that the average profitability of a private enforcement officer’s activity is 15-25%.Special attention is paid to analyzing the problems of executing cases with small recovery amounts, where traditional approaches to tarification may lead to economic inexpediency.The system of additional remuneration for actually incurred expenses and mechanisms for distributing costs between parties of enforcement proceedings are investigated. A comparative analysis of the peculiarities of private and state enforcement officers’ work is conducted, which revealed significant differences in the payment structure for services and the general level of costs for proceeding participants. It is established that private enforcement officers demonstrate higher performance indicators of execution, which partially compensates for higher direct costs.The prospects for tariff regulation development are determined and recommendations for optimizing the payment system for private enforcement officers’ services are proposed.