1. What are the timescales for chasing a Debtor?
On the day of instruction, we will send the Debtor a letter demanding payment within 7 days. If payment is not made in that period, and providing we receive the Court Issue Fee from you, we will issue a County Court claim on the 8th day.
Once proceedings are issued the timescales are governed by Court process. If the Debtor fails to file an acknowledgment of service or defence within 14 days, we will automatically apply to the Court for Judgment in Default. Once we have Judgment, the Debtor will be given 7 days to make payment. We will advise you of your options when enforcing the Judgment. The timescales associated with each enforcement method varies because it is governed by Court process.
2. Will you issue County Court proceedings automatically if my debtor does not pay after the Letter Before Action is sent?
We will not issue a County Court claim against your debtor unless we have express instructions from you to do so. This ensures that as creditor, you remain in control. This enables you to decide what tactics to adopt in each and every case.
3. What is the cost of chasing a Debtor?
Our costs start from as little as £2.00 for a letter demanding payment. Where the debt is undefended, all of our costs are fixed and therefore, you will know the cost associated with pursuing a debt at each stage of the Court process. We are able to offer our clients a cost effective debt recovery service because our innovative IT system enables us to offer a cost effective solution without impinging on the service delivered to our clients.
If you decide to issue a County Court claim, there will also be Court fees payable. Our fee structure informs you of the Court fee that will be payable so that the actual cost of you pursuing a debt is clear.
Should a debt be defended, our defended team will inform you of your options for pursuing the debt further and the cost of pursuing each option. This ensures that you can make an informed decision regarding how to proceed.
4. What happens if my Debtor offers to pay by instalments?
We will inform you if your debtor offers to pay by instalments. We will ask you whether you agree the proposal and if you do, we will accept the debtor’s offer and instruct the debtor to make the instalments to us. This will enable us to monitor whether the debtor is meeting its obligations. We will forward monies to you by cheque or telegraphic transfer, depending on your instructions. If you do not agree a debtor’s proposal, we will notify the debtor in an attempt to negotiate a better payment plan / issue a County Court claim dependant on your instructions.
If the Debtor pays the debt fully within 3 months, there will be no additional charge to you for the management of the payment plan. If the instalments are paid over a longer period, you will be charged £2.00 per month for each additional month. By way of example, if your debtor repays its debt within 5 months, you will be charged £2.00 per month for our service in the fourth and fifth month. You will not be charged any fee for managing the instalment plan during the first 3 months.
5. How often will you update me regarding my case?
Due to our experience in the provision of volume legal services, through our IT system, we are able to update our clients at every stage of the transaction. We pride ourselves on being proactive in our reporting so that our clients are kept fully informed – this is necessary to ensure that you can make informed decisions regarding how to proceed with your claim.
In addition to the advice that we will provide to our clients at every stage of the transaction, our clients will also be able to contact their client relationship manager for any additional questions or queries.
6. What happens if my Debtor defends our claim?
If a Debtor notifies us of a Defence (whether this be by correspondence before the issue of a claim or by the filing of a Defence with the Court) we will notify you of this defence immediately. This will enable you to decide whether you think the Defence has merit or not. If you decide that the Defence is without merit and that you wish to proceed with the action, your case will be referred to our specialist in-house Defended Team. If you are unsure whether the Defence has merit and would like us to advise you regarding its merits, your case again will be referred to our Defended Team.
The Defended Team will provide you with initial advice by way of a report. Before preparing the report, the Defended Team will assess the Defence and review any additional instructions that you may have given. The initial report will advise you regarding your options, the costs associated with each option and tactical considerations. This will enable you to make an informed decision regarding how to proceed. The cost of the initial advice will be £87.50 plus VAT. All further advice and representation will be charged at an hourly rate of £175 plus VAT.
7. Will you claim Interest and Compensation on the debt?
Where the debt is a business to business debt, you are able to claim interest and compensation pursuant to the Late Payment of Commercial Debts legislation. We will therefore claim interest and compensation in the letter demanding payment unless you instruct us not to. This can increase the debt substantially depending on how archaic the debts are and the number of invoices.
Where the debt is a business to consumer debt, you are able to claim interest at a rate of 8% per annum, pursuant to the County Court Act 1984. Again, we will claim this on your behalf unless you instruct us that you do not wish to claim interest on the debt.