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Civil Court fees hike

Following a consultation in December 2013 regarding proposals to increase court fees in a number of areas, including money claims (with a value specified and unspecified), commercial proceedings, hearings (fast and non-fast track) and divorce proceedings, the Ministry of Justice (MoJ) has announced an increase in fees for claims from 9 March 2015. It is also consulting on fee increases for possession claims, applications without notice or consent and applications on notice with consent (where the other party is aware and/or has agreed).

 The fee increases for money claims means that:

the fee for claims from £1 - £9,999 will remain unchanged.
the fee for claims from £10,000 - £199,999 will be five per cent of the claim.
the fee for claims £200,000 and above will be fixed at £10,000.
there will be a 10 per cent discount on fees for claims from £10,000 - £99,999 filed electronically.

The Law Society is seeking to challenge the government's decision to increase some court fees by over 600 per cent.

For those of you who have not experienced the court process, you may well feel that this is something that does not mean very much to you or your business. However, it does.

You should think about your practices particularly in relation to new business and how you deal with new customer, credit control and credit management. Do you have well drafted terms of business to assist you with effective transactions that will protect your business. It only takes one large  value order or sale to go wrong or for a new customer not to pay you and you could end up having to fund court proceedings. The increased fees and associated expense, with no guarantee of recovery is something to avoid.

If you would like to talk to us about having an effective process to identify new customers, credit control, credit management and a collection process where your customer does not pay, then contact Daniel Cottrell for a free no obligation chat. You can also take advantage of our contingency fee debt collection service for undisputed debts which means you only pay us if we collect your cash!

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