Lee & Co can assist you to collect your unpaid invoices but unfortunately it can take time in consequence of the new Protocol Rules. We have a start up fee of £275 to enable us to carry out Identity Checks and if the debtor is a limited company a further £25 for a credit report if you wish.
If it is a business to business debt, then a letter before action must be delivered to the debtor to demand payment within 7 to 14 days, and thereafter proceedings can be started in the Money Claims Centre of the County Court which is done on line. You could file the claim yourself.
If the debt is from a business to a private individual then unfortunately the new Protocol Rules dictate that a letter before action has to give 30 days before Court proceedings can be started. In addition, specific forms must be sent to the debtor to complete and he is required to give details of his finances, to which they rarely comply.
The debtor could respond to the initial letters and either make an offer or dispute the claim in which case it could cause a number of letters written by us to you and the debtor. If appropriate, we will assist to mediate to reach a settlement without Court proceedings
We charge for each letter written depending in its length and content with a minimum charge of £40 (including VAT). If enclosures are attached there will be an additional charge of £20 per attachment.
All other work will be charged at the government charging rate of £255 per hour plus VAT
On a successful conclusion we may charge a success collection fee of 10% calculated on amount of the debt up to £5,000 and thereafter on any balance at the rate of 5% with a minimum charge of £250.
Court proceedings for all debts below the sum of £10,000 are collected in the Small Claims of the County Court which unfortunately means that no legal costs can be recovered from the debtor except for certain fixed fees which will not cover the legal fees you incur which are your responsibility. Legal fees can be recovered through the Courts for debts greater than the amount of £10,000 if the debtor has the means to pay.
Court Fees
Fees payable to the Court on issue of the claim vary from £35 to £455 on the value of the claim up to the sum of £10,000. Debts between £10,001 and £200,000 the fee is at rate of 5%. Debts greater than £200,001 the fee is £10,000.
Once judgment has been obtained it is then a question of enforcement for which there are various means but it depends on the assets of the debtor and his ability to pay.
This will determine the length of time it will take to collect the debt. It could be several months or even years, depending on the strength of the debtor and whether he files a defence to your Court action.
D.I.Y.
You can of course attempt to collect the debt yourself especially those under £10,000 in the Small Claims Court, as there are no costs which can be awarded and our fees could cost you more than the debt itself. See our article on D.I.Y. Debt collecting.
Click here to see our step by step guide to D.I.Y. – Debt Claim
For further advice please ring us and we will do what we can to assist in an effort to reduce your costs.