Debt Recovery fees
The following debt recovery fees apply where you require repayment of a debt that has not been paid in sufficient time.
|ACTION||COST (inc VAT)|
|LETTER: In the first instance we will write a solicitor’s letter to the debtor setting out the basis for and requiring repayment forthwith.||£36 per letter|
Where you require letters to be sent to multiple debtors at one time (bulk debt collection) we will consider providing a discount dependent upon the amount of letters that you require to be sent.
In the event that the initial solicitor’s letter is not successful in securing the repayment of the debt, we will write a formal pre-action letter under the Civil Procedure Rules known as a “Protocol” letter complying with all the necessary formalities therein.
|ACTION||COST (inc. VAT)|
|FORMAL PROTOCOL LETTER for debts up to £10,000 (Small Claims)||£120 per letter|
|FORMAL PROTOCOL LETTER for debts of £10,000 and over||£180 per letter|
Should it become necessary to issue proceedings or take other enforcement action for debt recovery we are able to offer fixed fees as follows:
|ACTION||COST (inc. VAT)|
|Preparing and arranging service of a statutory demand||£150|
|N.B. There will be a process servers’ fee for personal service: addition estimated at||£120|
|Completing the Claim/Particulars of Claim and issuing proceedings||£180|
|Applying for Judgment in default of the debtor filing either an acknowledgement of service or a Defence to the Claim||£36|
|Advice with regard to enforcement choices||£180|
None of the costs above includes the separate Court Fee which is an expense payable in addition by you to the Court and we refer you to our paragraph in relation to expenses generally below.
The above costs apply only to undisputed debt collections and therefore do not include any subsequent negotiation with regard to Settlement. In the event that the debt becomes disputed, or requires enforcement we will provide you with costs advice specific to the complexity of your case to be charged on an hourly basis at the fee earners usual rate (see below) with clear limits at each stage.
Where we indicate that rates will be charged on an hourly basis our respective fee earners charge as follows:
- Bill Pope – £230 per hour plus VAT
- Tracee Huey-Smith – £230 per hour plus VAT
- A Trainee Solicitor – £140 per hour plus VAT
Any fee earner work undertaken by our experienced secretaries (that is work which is not merely administrative) will be charged at £100 per hour plus VAT.
We reserve the right to increase the hourly rates in certain specific circumstances to reflect (for example) any need to carry out work out of normal office hours, the complexity of the issues, the speed at which action has to be taken and any particular specialist expertise the case may demand to reflect the importance/urgency of the matter to you.
We will always notify you in advance if this is the case, and tell you the hourly rates to be charged.
Expenses are costs related to your matter which are payable to third parties, such as (but not limited to) Court fees, Bailiff’s fees, expert’s fees etc. A Court Fee for repayment of a debt will be entirely dependent upon the amount of debt required to be repaid. We will advise of the Court Fee you will have to pay if you instruct us to issue Court proceedings.
We will always ask you to check to see if you have Legal Expenses Insurance you may be able to use for this.
Who will act on my behalf?
We refer you to the “Our Team” section on this website for further details as to who within our Legal Disputes Department may have conduct on your debt recovery case.
How long will it take to obtain payment of my debt?
We will of course endeavour to obtain satisfaction of the debt as soon as possible by going through each of the necessary steps. If the debt is between private individuals you will need to allow the Defendant a minimum period of 14 days to respond to the initial Protocol letter. If you are a business claiming from an individual it will be a minimum of 30 days before a Claim can be filed with the Court (this will be longer in some circumstances depending upon the response of the Defendant). The Claim will usually be issued by the Court within a couple of weeks (depending upon how busy the Court is). The Defendant must acknowledge receipt of any claim within 14 days and has a further 14 days (total of 28 days) to file any defence. Therefore, In the event that no defence is raised then you should be notified of this within approximately one to two months of the Claim having been filed with the Court. If a Judgment is obtained the Defendant should then make payment in full within 14 days unless the Court has ordered otherwise. If the Defendant does not make payment in accordance with a Judgment then there are various methods of enforcement and the timescale will depend upon which method you choose. If the Defendant raises a defence this would fall outside of the fixed fee and we would advise you separately about potential time scales.