Debt Recovery Costs

Whenever possible, if we are able to predict the number of hours of work required to achieve the desired outcome for you, we can offer a fixed fee for our service. If we are unable to offer a fixed fee, we will provide you with the estimate and we will regularly update you with regards to the costs, so you are never surprised with the final bill.

With this in mind, we can promise you that:

1. We will be open and transparent about our fees and, where fixed fees are not applicable, we will ensure that you receive an estimate on the likely cost of your case at the very outset;
2. If there is a need for us to incur any additional costs, we will contact you before we do and will explain our reasons why; and

We promise that any invoices that we send to you will be clear, set out a description of the work done and the amount charged.

Debt recovery – unpaid invoices

We provide personal and bespoke service to our clients’ and our costs structure reflect that. Instead of just sending out a standard demand for payment to a debtor, we approach each Client and each case individually and work with the client on the best strategy to recover the monies due that we meticulously and persistently execute, always going an extra mile to achieve the desired outcome.

The below costs apply where your claim is in relation to an unpaid invoice 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, whenever possible, or an hourly rate if we are unable to estimate precisely the amount of work required.

Stage 1 – Pre-issue

Stage 2 – issue court proceedings

*In addition, we typically charge a success fee of 10% plus VAT of the debt recovered

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 or HCEO, is needed to collect your debt.

Our fee includes:

• Taking your instructions and reviewing documentation
• Undertaking appropriate searches, such as Companies House or Insolvency registers (some additional searches may incur additional cost, of which we will advise before incurring them)
• Sending a letter before action
• Receiving payment and sending onto you, or 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 28 days, providing you with advice on next steps and likely costs

Matters usually take 2-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.