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Debt Recovery Pricing
Debt Recovery services at Andrew & Co Solicitors. Debts can arise in all walks of life and we regularly advise and assist businesses and individuals alike.
The bulk of our debt recovery instructions come from businesses across various sectors. With many years of experience and strong expertise in litigation both in and out of court, our debt recovery service is fast, efficient and economical.
We have an experienced team who can assist you with recovering both disputed and undisputed debts. We pride ourselves on exceptional customer care skills enabling you to send out the right message and retain the goodwill of your customers whilst recovering outstanding payments.
We can offer you clear, practical advice and will discuss all the options available to establish the most appropriate way of dealing with debtors. We have tried and tested processes in place to ensure we can recover undisputed debts quickly, efficiently and cost-effectively, with transparent fixed fees.
We appreciate that the fees involved in debt recovery are important to you. We review our fees on a regular basis, considering client’s feedback, to ensure we continue to offer a cost-effective debt recovery service.
We usually undertake non contentious debt recovery work on a fixed fee basis. Non-contentious debt recovery work typically includes the recovery of unpaid invoices where the goods supplied or services provided are not being challenged. This gives you certainty about the costs involved and is proportionate to the level of money owed by the debtors.
The costs involved are as follows:
Prior to the issue of court proceedings
We send a pre-action protocol letter to the debtor to encourage them to make payment. The letter would indicate if payment is not made that proceedings could be issued.
Our Fee (Ex. VAT)
Up to £500
15% of the amount claimed
£501 - £1,000
10% of the amount claimed
£1,001 - £5,000
Fee depends on the amount claimed
5% of the amount claimed
£5,001 - £10,000
2% of the amount claimed
Greater than £10,000
5 % of the amount claimed
1% value of claim
A minimum charge of £100 plus VAT would apply.
When claiming costs from the debtor, it is important to note that the VAT element of any fees cannot be claimed. You can claim interest and compensation and we will advise you of the applicable rates.
The fees indicated are fixed and determined by the amount of the debt.
If the debt is disputed , further charges may be applicable which we will advise upon a case by case basis prior to undertaking any work.
If court proceedings are issued
We would prepare the Claim Form and submit this to the Court on your behalf.
A court fee would be payable for the proceedings to be issued and we would request payment of the fee from you prior to the issue of proceedings. We would also be able to claim fixed legal costs from the debtor on your behalf.
- The debtor, in a defended matter, issuing a counterclaim against you
- The track that the claim is allocated to (small claims, fast or multi track) can affect the amount of costs you can recover and the costs that you will incur
- Enforcement proceedings becoming necessary after you have secured a judgement
Debt recovery can take a matter of two or four weeks from receipt of instructions to resolve in cases where the debtor receives the pre-action protocol letter and makes payment in respect of the debt. In cases where proceedings have to be issued, or the debtor responds to the pre-action letter raising questions or queries with regard to the debt will take longer. We will discuss likely timescales with you; a factor to take into account is the time that the court can take in processing claims.
As detailed above, if enforcement action is required, we will discuss the fees and timescales involved.
With every transaction there are key milestones, which may vary according to individual circumstances. Our fees will include these milestones and may be as follows:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Issuing a pre-action protocol letter requesting payment from the debtor
- Receiving payment and sending this on to you
- Drafting and issuing a claim form if the debt is not paid
- Applying to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
- If the claim is defended, and depending upon the track that the claim is allocated to, advising you of the likely court timetable up to a final hearing
- Contacting the other side to request payment where a Judgment in Default has been issued by the court
- Discussing with you alternative dispute resolution as an alternative to issuing court proceedings