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Commercial Debt Recovery (undisputed)

Letter before action and Alternative Dispute Resolution (ADR)

Initially a letter before action would be sent to pursue recovery of a commercial debt owed to a business. This may lead to early settlement and/or alternative dispute resolution to procure payment from the Debtor.

In the event there is no dispute concerning liability for the debt and/or an offset or counterclaim, charges are subject to fixed fees per letter, normally between £20 and £250 (excluding VAT) and/or the hourly rate of the fee earner, if more extensive work is required.

Court Claims

Charges specified below are in relation to undisputed Court claims where settlement is agreed after the commencement of Court action or Judgment is obtained in default or upon admission of the Debt being owed and where enforcement action is not needed. If the other party disputes your claim at any point or pursues an offset or counterclaim, 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.

Please note that you may be able to claim reasonable debt recovery charges for services provided by us in pursuing a commercial debt.

Up to £5,000 Up to £205.00 £250 – £350 Up to £455 – £555
£5,001 – £10,000 £455.00 £300 – £400 £755 – £855
£10,001 – £50,000 5% value of the claim £400 – £600 N/A
Over £50,000 5% value of the claim £500 – £750 N/A

Anyone wishing to proceed with a claim should note that:

  • The VAT element of our fee cannot be reclaimed from your debtor.
  • Fixed compensation may be recoverable under the Late Payment of Commercial Debts {Interest) Act 1998 (“the Act”).
  • Reasonable debt recovery costs incurred by you may be claimed under the Act.
  • Interest and compensation may take the Debt into a higher banding, resulting in greater costs.
  • The costs quoted above are not for matters where enforcement action is necessary to recover your debt, such as appointment of a bailiff.

Our fee includes:

  • Taking your instructions and reviewing documentation;
  • Undertaking appropriate searches;
  • Sending one letter before action;
  • Receiving payment and sending this onto you, or if the Debt is not paid, drafting and issuing claim;
  • Where no Acknowledgment of Service or Defence is received, applying to the Court to enter Judgment in default;
  • When Judgment in default is received, writing to the other side to request payment;
  • If payment is not received within 7 to 14 days, providing you with advice on next steps and likely costs.

Matters usually take 1 to 12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether it is necessary to issue a claim. This estimated timescale is on the basis that the other side pays promptly on receipt of Judgement in default.
If enforcement action is needed, the matter will take longer to resolve.