Debt recovery costs and services
Court Claims
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one-off letter is required), or an hourly rate if more extensive work is needed.
| Debt value | Court fee | Our fee (incl. VAT) | Total |
|---|
| Up to £5,000 | £185.00 | £501.59 | £686.59 |
| £5,001 - £10,000 | £410 (SDT/MCOL Based on current fee orders) | £501.59 | £911.59 |
| £10,001 - £50,000 | 4.5% value of the claim | £501.59 | Based on value of the claim |
Anyone wishing to proceed with a claim should note that:
- Court Fees are based on current fee orders as at July 2018 and on proceedings issued online.
- 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, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing the documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, 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, write to the other side to request payment
- If payment is not received within 30 days, providing you with advice on next steps and likely costs
Any non-fixed fee work will be charged at £190 per hour plus VAT
Matters usually take 5-6 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 and there is no delay in the court processing the issue of proceedings and service. If enforcement action is needed, the matter will take longer to resolve.
*VAT is charged at a rate of 20%
Late Payment of Commercial Debts
For businesses, the cost of recovering a late payment is a fixed sum with interest; please note that you're only charged once for each payment.
| Amount of Debt | Charge |
| Up to £999.99 | Basic Rate of £40 |
| £1000 to £9,999.99 | Basic Rate of £70 |
| £10,000 or more | Basic Rate of £100 |
| Fixed Recoverable costs for most claims up to £100,000 | Basic Rate of £180 |
The Basic Rate above is the minimum cost for these respective amounts of debt costs; the charge depends on client requirements and case details.
The interest rate for this is 8% unless your contract specifies differently.