This page sets out costs for debt recovery work for claims up to £50,000 against debtors located in England and Wales.
The costs below apply where the claim is for unpaid invoices which are not disputed. Should a dispute arise during the course of seeking recovery of the debt, we will discuss any further work required and provide a revised cost estimate. These costs many be on an hourly rate.
During this initial pre action stage, you will be asked to supply us with documentation in respect of your claim. Upon receipt of these papers, we will draft a letter before court action to the debtor. The letter will be sent to you for your prior approval. Once the letter is approved, it will be sent to the debtor with a request for payment within a certain period, usually 21 days. In the absence of response, a final letter will be sent to the debtor reminding them of the deadline and the consequences of legal proceedings should the debt remain unpaid.
The work required at this stage will include :-
- Taking your instructions.
- Reviewing documentation.
- Preparing a letter before action for your approval.
- Sending a letter before action.
- Sending a final letter prior to court proceedings, if necessary.
|Debt value||Our fee||VAT||Total|
|Up to £5,000||£ 250.00||£50.00||£300.00|
|£5,001 – £10,000||£250.00||£50.00||£300.00|
|£10,001 – £50,000||£250.00 – £500.00||Up to £100.00||£600.00|
|* Basis of charging = fixed fee|
Where the debtor has failed to respond, make payment or agreement has not been reached we shall draft a claim form which shall refer to any contract, invoices and correspondence which you have supplied. Once the claim has been issued by the court, you should receive Notice of Issue which will state that the debtor has 14 days from service of the Claim Form to reply. A copy of this Notice will supplied to you. We will contact you to request further instructions following the deadline, assuming that no defence or counter claim is filed and served by the Defendant.
|Debt value||Court fee||Our fee||VAT||Total|
|Up to £5,000||Up to £205.00||£250.00||£50.00||Up to £505.00|
|£5,001 – £10,000||£455.00||£750.00||£150.00||£1,355.00|
|£10,001 – £50,000||5% value of the claim||20% of the value of the claim||£||£|
|* Basis of charging = fixed fee|
In the event that the claim is not disputed, we shall file a Request for Judgment for which our fee is £75.00 plus VAT.
Our service will not include any of the following:
- Our services apply to undisputed debt to a value of £50,000.
Approximate / average timescales
Debt recovery matters usually take 8 to 20 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.
Factors that could increase costs
In some circumstances we may increase our fees to account for additional time, work or skill required to meet your instructions. Examples include:
- If the value of the compensation and interest take the debt in to a higher banding attracting a higher fee.
- If enforcement action is needed such as a bailiff to collect your debt.
- The amount of paperwork which we are required to consider.
- If instructions are not clear or prompt requiring us to chase or incur further time taking instructions beyond that initially envisaged.
The hourly charging rate applied would be £210.
Qualifications and experience of our team
|Jasmine Diedrick||Solicitor, Head of Litigation Department||Jasmine qualified as a Solicitor on 01/02/2008 and has a wealth of experience in Debt Recovery|
Regardless of who works on your matter, they will be supervised by Andrew Hutchinson – Solicitor & Senior Partner