Undisputed Business to Business Debt Collection – information on pricing

1. Letter Before Claim

  • This is an initial letter sent to the debtor business, summarising the claim and warning that court proceedings will be commenced if payment is not made.
  • You must provide the required information including the name and address of the debtor, a succinct summary of what the debt relates to and when it was incurred, the precise figure for the debt owed (including any interest) and a copy of any invoice or statement.
  • At this stage we are not offering any advice on the merits of your claim.
  • We will report to confirm whether the debtor has paid, or disputed the debt or failed to reply or requested more time.
  • For this work we make a charge of £150 plus vat. If you instruct us to calculate any interest due the charge will be £200 plus vat.
  • We will review this charge if it transpires that extra work is required in order to establish any of the information required above.
  • A Letter before Claim must provide the debtor with a reasonable period to take advice and respond, which is usually in the region of 21 – 28 days from the date of the letter.

 

2. Court Claims

  • If the debtor business still fails to pay, you may want to start court proceedings. The costs below apply where your claim is in relation to an unpaid invoice (or similar claim) which is not disputed and enforcement action is not needed.
  • If your claim is not straightforward or if the debtor business disputes your claim at any point, we will discuss with you any further work required and provide you with revised advice about costs if necessary, which could be on the basis of a fixed fee or our hourly rate/s.

 

Debt value Court fee Our fee Total (incl. VAT)
Up to £5,000 £35 - £205 £400 + £80 VAT £515 - £685
£5,001 - £10,000 £455 £500 + £100 VAT £1055
£10,001 - £50,000 5% x value of the claim £600 + £120 VAT £720 + court fee

 

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 is needed to collect your debt, such as appointing an Enforcement Officer.
  • If your claim is allocated to the Small Claims Track (generally this is when it is £10,000 or less), you will not be entitled to recover any costs you pay to us, other than the court fee (which will be added to the debt)

 

Our fee under this section includes:

  • Taking your instructions and reviewing documentation
  • Undertaking appropriate searches
  • 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, writing to the other side to request payment
  • If payment is not received within 21 days, providing you with advice on next steps and likely costs

In view of the fact that we will start work immediately upon receipt of your instructions a payment on account of the estimated costs is required at the outset.

Matters usually take up to 10 weeks from receipt of instructions from you to receipt of payment from the other side, depending on how the debtor responds to the claim. This also assumes that the debtor pays promptly on receipt of the Judgement. If enforcement action is needed, the matter will take longer to resolve. This time estimate will increase if there is any delay in the court processing the documentation.

Caseworkers

Neil Hughes
Partner

I have been with the firm for over 30 years, dealing with the resolution of a wide range of legal disputes, particularly within the commercial environment.

I have dealt with far too many disputes not to appreciate how serious the consequences can be for all parties in a legal argument, including the money consumed, the time taken and the energy expended. My role, therefore, is to keep such consequences for you to a minimum, whilst achieving the best possible result.

My work ranges from commercial disputes (involving businesses, directors, partners and shareholders), through to private cases, such as disputes over property and boundaries, tenancies and claims against professional advisers, such as accountants, surveyors and solicitors.

I am a member of The Law Society's Civil Justice Section.

 

Karen West
Chartered Legal Executive

I am a Fellow of the Chartered Institute of Legal Executives and I work, in the main, for the Dispute Resolution and the Family Teams. As mentioned below, some of my work also crosses over into our Wills, Trusts and Probate Team

I have over 26 years of experience in these areas.

In the Dispute Resolution Team I deal with a wide range of work, to include contract claims, property disputes and Landlord and Tenant matters (possession proceedings).

I also specialise in cases which involve disputed Wills, Probates and inheritance issues all of which means I work very closely with the Firm’s Wills, Trust and Probate Team.

My work in the Family Team includes divorces and related financial matters and I also have particular experience in dealing with children cases, such as disputes over when you see your children or where your children should live.

I pride myself on being approachable and friendly and will focus at all times on the best possible outcome for you, your business or your family.

Expert legal advice you can rely on,
get in touch today:

Please let us know you are not a robot