Business to Business Debt Collection
This firm will charge an initial fee of £80.00 plus VAT for any Letter before Action to be sent to a Commercial Debtor on behalf of a Creditor. This includes an initial meeting with you to discuss the claim and to obtain all relevant information to enable us to send the letter on your behalf. We will then send the letter and provide you with a copy and any response if one is received. Thereafter, this firm operates a pricing structure as follows:
Issuing a Claim
- On an amount up to £10,000.00, this firm will charge a fixed rate to draft the claim on your behalf of £201.00 plus VAT with time estimate for drafting of between 1 and 3 hours.
- On an amount over £10,000.00, this firm will charge an hourly rate of £201.00 per hour plus VAT with time estimate for drafting of between 1 and 5 hours.
- There will be a Court issue Fee to be taken into account and you should consider https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/728133/ex50-eng.pdf for further details of the relevant Court Fees.
- This will include drafting the Claim Form and Particulars of Claim and Lodging the same with the Court. We will not issue a Claim on your behalf without permission and due consideration of the claim. You will be expected to sign the Claim Form and Particulars of Claim
- After the Claim has been issued at Court, should the claim go unanswered, there will be an additional fee of £50.00 plus VAT to Request Judgment from the Court. An estimated time frame in this instance would be approximately 2 - 3 months.* After the Claim has been issued and if no response is received, we will Request Judgment on your behalf but only after this has been discussed with you. We will not request a Judgment without prior approval.
- If the Claim is defended, this firm will apply an hourly rate charge to the matter of £201.00 per hour plus VAT. For a matter to be pleaded and heard at Court, we estimate that the time frame to have the matter heard by a Court to be approximately 12 – 16 months.* No works will be undertaken until all issues have been discussed and agreed with you.
- Various other stages exist within the Court procedure and all directions of the Court must be complied with.
- If, after Judgment has been obtained, the debtor does not pay, there are varying types of enforcement actions available to a Judgment Creditor, all of which have varying Court fees as can be seen from the link above. We will not take any action to enforce the Judgment unless you instruct us to do so will only undertake enforcement after all enforcement options have been discussed and the most appropriate way to enforce is agreed.
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, such as the bailiff, is needed to collect your debt.
* Time frames are based on experience of past cases and are stated as an estimate only. Each case is different and time frames will vary.