Debt recovery

 

The following fee’s apply for undisputed debt recovery from Business to Business and are at current rates.

To discuss your specific debt recovery requirements, please contact Allan Hunt on 01621 852566 or ahunt@mitchellplampin.co.uk

These costs are indicative 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.

Our fees are based on an hourly rate of £250 plus VAT.  Letters and emails sent are calculated upon the basis of a six-minute unit so are charged at the rate of £25 plus VAT as are standard phone calls

The first step is for us to send a letter before action giving a period to comply and thereafter if no response, we would draft proceedings and in the absence of a Defence apply for judgement.

At this stage an average of 3 hours work will have been carried out so the cost will be in the region of £750 plus VAT plus the court fee of 5% of the sum claimed .

Anyone wishing to proceed with a claim should note that:

• 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 documentation;
• Undertaking appropriate searches;
• Sending a letter before action;
• Receiving payment and sending to you, or if the debt is not paid, drafting and issuing a 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 in accordance with the judgment, providing you with advice on the next steps and likely costs.

How long will my debt recovery transaction take?

This very much depends on the person being sued.  We would aim to send the letter before action within a day or so of being instructed.  This would mean that the period can be anything from a few weeks to a few months. The shortest time period is based on court proceedings not being required and the longest on obtaining the judgment in default.

If an Acknowledgment of Service or a Defence is filed, we will be able to advise you of the likely costs for a defended claim and the timescales at that time. We will continue to charge you at an hourly rate of £250 plus VAT.

If enforcement action is needed, the matter will take longer to resolve. The matter will be transferred to the High Court for enforcement for which there is a court fee of £66.

Each matter is different and the above can only be a guide so to discuss your specific debt recovery requirements, please contact me on 01621 852566 or by email ahunt@mitchellplampin.co.uk