Debt Collection
When contracting with someone, get their name right.
- If you give us the wrong name and we sue, it will cost time and money to start over again
- Distinguish whether the Debtor is a Sole Trader, Partnership or a Limited Company
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- A Sole Trader is a single person albeit trading under a trading name e.g. "John Smith trading as Smith Stores"
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- .A Partnership is where two or more people work together, possibly with a trading name e.g. "John Smith and John Brown trading as Smith's Stores"
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- A Limited Company is a separate legal entity distinct from its Directors and Members. It will be registered at Companies House and usually has the word "Limited" or "Plc" at the end of its name. Again it may have a trading name e.g. "Smith Enterprises Ltd trading as Smith Stores"
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- A Limited Liability Partnership a separate legal entity distinct from its Partners and Members. It will be registered at Companies House and usually has the word "LLP" at the end of its name. Again it may have a trading name e.g. "Smith Enterprises LLP trading as Smith Stores".
If there will be no dispute and the debtor is just delaying, we will need copies of your invoices only. You can pursue either of two courses of action - Bankruptcy or County Court proceedings
If the Debtor does not think he should pay, we will need all correspondence indicating the dispute and a statement from you as to the position. You will have to start County Court proceedings.
Bulk Debt Collecting
We are pleased to be able to offer a Debt Recovery Service for clients at the rates shown below. The initial cost per letter (Letter before Action “LBA”) will be calculated on the basis of the number of debts sent to us at any one time. For example:
1-5 debts - £25 each LBA
6-20 debts - £20 each LBA
21-50 debts - £15.00 per LBA
51-100 debts - £10.00 per LBA
If further work is required to recover a debt, it will be agreed prior to any action being taken by us and will be dealt with in accordance with our Terms of Business.
The process is as follows:
- The client sends details of the debts on an excel spreadsheet with details of the debtors, that is, their name and address and the amount of the debt.
- At this point, money on account will be payable, for example a batch of 30 debts would equate to a fee payable of £450 plus VAT. Payment can be made to us by cash, cheque or credit card.
- An LBA (the wording of which will be agreed with the client beforehand) will then be sent to each debtor.
- A three week deadline will be set, at which point we will update you, by telephone, of the responses we have received and then agree any further action.
The responses are likely to fall into one of four categories:
- Payment in full
- Proposals to pay by instalments
- Dispute as to the sum due
- LBA ignored/returned
Once we have discussed the responses received, we can agree what (if any) further action is to be taken. We can negotiate for payment or issue proceedings on your behalf, both of which will be charged at an hourly rate.
Call Felicity Keeler 01622 891711to discuss
