Debt Collection
If you have problems recovering your debts we can help. We can provide you with an effective debt recovery service whether the debt is a one off or whether there are a significant number of trade debts being recovered.
Our experience tells us that in many cases simply a letter from a firm of Solicitors is enough to convince the debtor to pay up. In cases where that does not work then there are various ways we can recover the debt for you including proceedings through the County Court or service of a formal statutory demand threatening winding up or bankruptcy depending on the type of debtor.
We have, in the light of our experience, developed a charging rate which we think is fair and proportionate. It is based on the assumption that most debtors pay up on the first letter and so we offer a fixed fee to open the file, review the outstanding debt and send off the initial letter. If this does not work then we offer two options for how to proceed. Our rates are as follows:
A) First letter (to include taking instructions, reviewing outstanding invoices and opening file)
Fixed fee of £50.00 together with VAT.
B) Option One
Fixed fee (to include pursuing debt through County Court proceedings and/or preparing a statutory demand for payment but excluding any enforcement proceedings or defending a counter claim)
Claims up to £5,000 fixed fee of £250.00 together with VAT & disbursements
Claims up to £10,000 fixed fee of £500.00 together with VAT & disbursements
Claims up to £20,000 fixed fee of £750.00 together with VAT & disbursements
Claims over £20,000 fee to be agreed depending upon complexity of matter.
C) Option Two
No Win, No Fee option (pre litigation)
If we do not recover the debt then there is no fee, save for any disbursements incurred. If we do recover then we charge a percentage of the debt recovered. We are able to offer this service to our clients in all matters up to the issue of County Court proceedings. At that point we would revert to the fixed fee option above.
Claims up to £15,000 we charge 10% of sum recovered together with VAT & disbursements
Claims up to £20,000 we charge 12.5% of sum recovered together with VAT & disbursements
Claims over £20,000 we charge 15% of sum recovered together with VAT & disbursements
The basis of charging is designed to be simple and transparent. It also gives certainty in respect of your legal fees. The initial fixed fee of £50.00 together with VAT will generally take care of most debts. If it does not then there are two options, the first, which is a fixed fee, puts matters at your risk in the sense that we are paid even if, unfortunately, we are not able to make a recovery on your behalf. The second option puts matters at our risk. There is a greater cost to you if we are successful but if we are not, then the risk is on us because other than to repay to us any agreed disbursements we have incurred, we do not make any charge to you.
