Debt recovery – range of fixed fees

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Each case is different.  Please email us or call 01202 525 333 and we will give you an estimate or fixed fee based on the circumstances of your individual case.

Our charges, key stages and services provided

Debt recovery services are available through this firm’s Dispute Resolution [CM1.1] department, which is supervised by Lauren Day [CM2.1], Managing Partner. Details of the full team, their qualifications and experiences, can be found on their profiles.

The fee details set out on this webpage relates specifically to simple debt recovery services and is indicative only. Once the full details relating to your particular matter are understood, we will provide a specific fee estimate which, upon confirmation of our instruction through a signed client care letter and terms of business, will form the contractual basis upon which we will deliver our services.

During the progress of any matter it is possible that fees may change due to changes in your instructions, the level of complexity, if new information comes to light, or if circumstances change. Should this be the case, we would discuss this with you at the time and agree any changes.

Any additional services required outside those set out below would be quoted separately on an individual basis.

The costs below apply where your claim is in relation to a simple unpaid invoice for a liquidated debt, with one potential claimant against one potential defendant (both of whom operating/residing within the jurisdiction of England and Wales), which is not disputed or anticipated to be disputed in any way, and where enforcement action is not needed. If the other party disputes your claim at any point, or if any more complex issues arise, 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. Where appropriate, we seek to agree a fixed fee at the outset of the matter. Below we have set out a guide to likely costs based upon the value of the debt. In the event that a matter becomes more complicated than initially anticipated we would charge additional fees on a time spent basis which, depending on the seniority and experience of the lawyer dealing with your case, will range from between £180 and £450 plus VAT per hour.

*Please note that VAT is chargeable on top of our costs for the work we carry out for you. VAT is currently charged at 20%. Any cost estimate is exclusive of disbursements such as Court Fees, Advocates’ Costs, Search Fees, etc.

The above-mentioned costs would include:

• Taking your instructions, initially reviewing documents, and advising
• Undertaking appropriate pre-litigation solvency searches
• Drafting and sending a Letter Before Action
• Drafting, filing, and serving a Claim Form (and Particulars of Claim where necessary) against a single Defendant
• Filing a request with the Court for judgment to be entered in default of a defence being filed
• Writing to the Defendant seeking payment of the default judgment
• Providing general advice in respect of potential enforcement options
• Receiving payment and forwarding the same onto you

The above fee estimates do not include advice or action on any issues that do not relate to simple debt recovery, and do not include representation at hearings. Any correspondence which falls outside of the fixed fee will be charged at an hourly rate (which can be found above).

Most debt claims are claimed on the basis of contract law. Should a claim require advice of a different area of law we may need to refer your matter to a different department who will charge on a different basis. We will always inform you of the likely costs and seek your authority before taking such steps.

Factors that could make a claim more complicated

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from your debtor if you are able to recover the input VAT (i.e. you are VAT registered).
• 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 instruction of a bailiff or High Court Enforcement Officer, is needed to collect your debt.
• If the matter becomes contested at any point that will increase our charges, which we will discuss with you.

How long will my matter take?

It will usually take 1-2 weeks to prepare and send a Letter Before Action, which will need to provide a minimum of 14 days (if the debtor is a company) or 30 days (if the debtor is an individual) for a response/payment. If no payment is forthcoming, it will take a further 1-2 weeks to prepare and issue the claim. The Defendant will have 14 days to file an Acknowledgment of Service, and if they do so they will have another 14 days to file a Defence. If the Defendant fails to file an Acknowledgment of Service, or Defence, then Default Judgment can be requested, which will take between 1-5 weeks to be granted by the Court depending on whether the request is submitted via the Court’s online portal, or by paper request. The Judgment will require payment within 14 days. If enforcement action is needed, the matter will take longer to resolve.

If you would like to discuss a debt recovery matter please contact the team, you can email us or call 01202 525 333.

Anti-money laundering

To comply with anti-money laundering and counter terrorist financing requirements, we are required to ask you for proof of your identity and will conduct searches or enquiries for this purpose. Alongside this we may require details on source of funds.

To make this process easier for you we will use our third-party digital ID checking service provided by InfoTrack. We will charge you for undertaking these identification and verification checks as a cost. We do not make a profit on these checks. The cost of the check is £9.00 plus VAT per individual being checked.