Debt collection FAQ’s
In short, yes, it is! Be sure that you have a good chance of recovering the debt. Have you called and sent letters and emails to the debtor? Is there a reason they are not paying you? For example, is there a dispute that needs resolving?
Even if the debtor has CCJ’s against them it is still worth chasing your payment using a professional and experienced debt collection company.
If your debtor has become insolvent, although slim, it is still possible to collect the debt!
If your customer has obtained a Debt Relief Order there would be very little point in pursuing it. The order means that for a year you cannot enforce your rights against them.
There is never a guarantee, however, there are methods that we use to “politely, but firmly obtain payment.” Communication and negotiation are key.
Discuss the issue with your customer and try to find out what the problem is. Negotiate and potentially be ready to compromise with them.
It is always worth remembering that a customer who does not pay may not be worth keeping.
Ask for your payment, get a payment date, set a deadline for payment, follow up. Be consistent and don’t let it go on and on.
The amount of time to collect a debt varies. For undisputed debts that don’t require legal action, on average it takes between 3 and 4 weeks. Although the fastest payment we ever collected was within 3 minutes.
Absolutely! We have created a simple late payment interest calculator to work out how much you can legally add to the bill.
As well as claiming interest of up to 8% annually, you can also charge a fixed amount for the cost of recovering a late commercial payment. These amounts are £40, £70 or £100 depending on the debt amount owing.
We work to resolve the dispute directly with your customer with our experience in negotiation and mediation.
You do! We advise you on the situation and provide you with resolutions. But ultimately you make the decision.
Yes, we can help! Court fees and a small administration fee is payable in advance.
Certainly, you can claim back the court fees if you are successful as they are included within the amount claimed.
Should you wish to stop, you can send a letter to the relevant court to discontinue the claim.
or small claims it is not necessary. Just explain your case to the judge clearly and factually. However, if your claim is allocated to Multi-Track or fast track, we would recommend that you use a solicitor, although its not a legal requirement
Sometimes bringing in a third party like a debt collection agency is exactly what it needs to get your payment. Alternatives to legal action might be Alternative Dispute Resolution (ADR) or Mediation. Mediation is when an impartial person helps both you and your debtor work out an agreement.
It would be ideal if all customers had a written signed contract, but don’t worry if you don’t. If you have delivered a product or service, perhaps you have a delivery note? Or proof of the service delivered. Did you send an invoice? Text messages, emails and other documentation are always worth noting.
Make sure that you keep copies of any correspondence you send when chasing the debt.
Even if you don’t have direct written proof or evidence of terms agreed or a contract, you STILL have a chance. When you are chasing the debt, keep the responses from the customer, as they may reply in a way that suggests that there is an agreement between you.
The person or business who owes you money (the ‘defendant’) must respond to your claim within 14 days of receiving it.
You must tell the court by updating your claim online if you get paid within this period.
Should you not get payment or if the defendant doesn’t file a defence, counter claim, or part admission, then once the 14 days are up you can request judgment.
If the defendant files a defence or counter claim, you will be offered telephone mediation. If you don’t feel that mediation would work, then you can go directly to a court hearing.
First, the judge will send you an “order” stating what they require filing before the hearing date. This is usually the evidence to support your claim.
So next you need to gather all your evidence together. Photographs, emails, anything that might be relevant. Proof of trying to negotiate or compromise. Try to avoid derogatory or slanderous comments, stick to the facts.
Then submit to the court.
Sadly, no it doesn’t. When you win the case, you will be awarded “Judgment.” If the debtor still refuses to pay you, then you can “enforce judgement” through the court by using the county or high court bailiffs. To use high court bailiffs the debt will need to be over £600.
If a debtor has not paid you within 30 days of the judgment made against them, then their details are registered as a CCJ. CCJ’S stay on the register for 6 years.
As soon as you get the hard copy of the judgment you can request a warrant of control or a High Court Writ of Control. The cost is either £66 or £77 depending on which court you use to request it from.
If the debt owed is under £5000 you can send the warrant to the county court bailiffs for them to enforce. If the debt owed is over £600 you can transfer it to the High Court for them to enforce.