Undefended Debt Recovery Charges
We base our charges for standard simple undefended debt collection in respect of unpaid invoices/debts, up the value of £10,000.00 on a fixed cost basis. This is so that our Clients know from the commencement of the action what our charges will be for the cost-effective debt recovery service that we provide.
Our fixed charges are in respect of Proceedings where the Claim is subject to the Laws of England and Wales ad within the jurisdiction of the English Courts.
Our fixed charges only apply where the Claim is not disputed and where no Enforcement Proceedings (including Charging Order Applications) are required.
Please contact us for further details if you need to discuss our other charges, that do not fall within the scope of standard undefended debt recovery.
Stage 1 – Pre-Action : Letter of Claim (Before Court Proceedings are issued)
We will advise you of any interest that you may be able to claim, whether Statutory interest or Contractual interest and whether you can also claim any compensation costs.
The requisite amount of time that we need to give to your Debtor within the Letter of Claim, to make payment, depends mainly upon the legal entity of your Debtor. Under the Provisions of the Pre-Action Protocol for Debt Recovery Claims (1 October 2017), if the Debtor is an Individual/Sole Trader we have to allow your Debtor 30 days to respond to the Letter of Claim, before taking further action. Otherwise we are required to allow 14 days.
On the basis that we are provided with all the requisite information/documentation in order to proceed, we will endeavour to draft and submit a Letter of Claim to your Debtor, within seven working days.
Our Charges include
- Discussing the matter with you and taking your instructions.
- Reviewing the documents that you provide to us.
- Preparing and sending a Letter of Claim to your Debtor, via first class post, advising that Court Proceedings are imminent if payment is not made within the requisite time period.
- Advising you that the Letter of Claim has been sent to your Debtor.
- Notifying you when payment has been received and remitting payment to you.
Stage 2 – Court Proceedings
If there is no payment or response from your Debtor to the Letter of Claim, the next step would be to issue Court Proceedings.
We will advise you of the interest that you can claim, whether Statutory interest or Contractual interest and whether you can also claim any compensation costs.
If the value of the Claim is under the sum of £10,000.00 there is a general rule that Costs are not ordinarily recoverable from your Debtor, even if you are successful. However, the Fixed Recoverable Costs together with the Court Fee are ordinarily recoverable from your Debtor, so long as recovery is successful.
On the basis that we are provided with all the requisite information/documentation in order to proceed, we shall endeavour to prepare and lodge your Claim with the Court for issue within seven working days of receipt of your instructions to do so. Thereafter it ordinarily takes at least five working days for the Court to issue your Claim (dependent upon their current backlog) and fourteen days must then be allowed from the date of service of the Claim Form/Particulars of Claim upon your Debtor, for your Debtor to respond.
Our Charges include
- Preparing the Claim Form and Particulars of Claim and filing these with the Court for issue.
- Advising you that the Claim Form and Particulars of Claim have been filed with the Court.
- Advising you when the Claim Form and Particulars of Claim have been issued and served on the Defendant.
- Notifying you when payment has been received and remitting this to you, or alternatively advising you of any response to the Proceedings or advising to apply for Judgment if there has been no response to the Proceedings.
Stage 3 – Judgment
If payment is not made in full and no Defence is filed, then we will apply to the Court for Judgment be entered (CCJ).
We shall endeavour to lodge a Request with the Court for Judgment to be issued within seven working days of receipt of your instructions to do so (following the expiration of the 14 days we have to allow the Defendant to respond to the Claim). Thereafter it ordinarily takes approximately two weeks for the Court to issue the Sealed Judgment and send it to us.
Our Charges include
- Obtaining your instructions to apply for Judgment.
- Preparing the Application for Judgment and filing this with the Court.
- Advising you when the Sealed Judgment is received from the Court.
- Serving a copy of the Sealed Judgment on your Debtor demanding payment and threatening Enforcement/Insolvency Proceedings if required.
Our Charges do not include
Checking addresses or any other details provided by you in relation to your Debtor.
- Advising you regarding the financial/insolvency status of your Debtor.
- Any personal attendances on you.
- Advising you as to your likely prospects of success of recovery.
- Corresponding/negotiating with your Debtor/Debtor’s Solicitors.
- Negotiating any instalment arrangements/monitoring collecting any instalment payments.
- Amending/re-serving the Claim Form and/or Particulars of Claim or serving any additional addresses/multiple Defendants.
- Any post Judgment steps.
Overall matters, on average, take twelve weeks from receipt of instructions from you to receipt of payment from the Debtor (if payment is made promptly as a result of a Sealed Judgment). If Enforcement Proceedings are required, the matter will take longer to reach conclusion.
Defended Debt Recovery Charges
If at any time during the Debt Recovery process, the Claim becomes disputed, we will discuss the change in our Charges with you and discuss the next steps. Ordinarily however, in these circumstances, our hourly rates will apply as below:
Grade A Fee Earner (8+ years PQE) £201.00
Grade B Fee Earner (4+ years PQE) £180.00
Grade C Fee Earner (0-4+ years) £150.00
Grade D Fee Earner (Trainee or Paralegal) £111.00
Who will deal with my matter?
Please see the Debt Recovery section of our website. Upon instruction you will be allocated a dedicated caseworker whose level of experience will be commensurate with the type of matter. All our staff are highly trained and receive constant updates and training on new areas of law and practice and procedure.