We operate a debt recovery department. Debt recovery can be difficult and complex.
We offer several trace options through third party agents and then undertake a risk assessment to determine the most effective form of debt collection and viability of issuing Court proceedings.
Where appropriate, if the debt is disputed or complex, depending on the amount involved, the case will either be referred to our debt recovery small claims team or our dispute resolution team.
The process of debt collection will depend on the circumstances but could include service of a statutory demand which frequently results in the debtor making payment and if necessary the issue of a bankruptcy petition/winding-up petition.
Where we consider it appropriate we offer a ‘no win no fee’ service.
Our fees are calculated on an hourly rate basis, commensurate with the qualification and expertise of the individual in our organisation dealing with the matter. Hourly rates range from £150 to £250 per hour, exclusive of VAT.
We will at the outset discuss the most cost effective way to pursue the case and allocate your case to a person within our team with a suitable level of qualification and expertise.
Where your claim is in relation to an unpaid invoice that is not disputed and enforcement action is not required our fees are £250 plus VAT.
If the debt is disputed, depending on the circumstances we would discuss our fees with you before accepting instructions, depending on the proposed method of debt collection in order that we could provide you with a bespoke quote.
We envisage a timescale of up to four weeks and if by then payment has not been made by the debtor a decision will be made as to whether Court proceedings were necessary, with typical time frames as follows:
• A small claims dispute up to £10,000 – three to four months, four to five months up to and including the final hearing.
• Fast-track or multi-track cases. These can take six months or much longer, up to and including the final hearing.
These costs apply where your claim is in relation to an unpaid debt which is not disputed and enforcement action is not needed.
If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g if a one-off letter is required), or an hourly rate if more extensive work is needed.
We will not accept instructions for a debt below £1,000.00 simply because, in our view, it is not commercially viable for us or our clients.
Claims of over £10,000 we find are more likely to be disputed and as such we find that an hourly rate is more appropriate and if the claim is disputed the costs maybe recoverable.
The following table gives details of court fees and our fixed cost. These are for all work up to and including securing a judgment in default of a defence.
| Debt Value | Court Fee | Our Fee Excluding VAT |
| £1,000 – £1,500 | £80 | £150 |
| £1,500 – £3,000 | £115 | £200 |
| £3,000 – £5,000 | £205 | £250 |
| £5,000 – £10,000 | £455 | £500 |
| £10,000 – £200,000 | 5% of the value of the claim | We charge at an hourly rate of £210+VAT and each individual case will need to be discussed |
| £200,000+ | £10,0000 | We charge at an hourly rate of £210+VAT and each individual case will need to be discussed |
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation
- Sending a letter before action
- If the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within the time you instruct us to give the debtor, providing you with advice on next steps and likely costs
If enforcement action is needed on any judgment successfully secured, we will give you an indication of our further fixed fees and court fees because these will depend on the enforcement action you opt for following our advice.
Please note that anti-money laundering electronic verification checks maybe undertaken at a cost to you of approximately £3 (inclusive of VAT), per name of each client.