Our Costs on Debt Recovery Claims
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and where enforcement action is not needed. They do not apply to work undertaken in relation to a debt that you owe. If the other party disputes your claim at any point, 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.
We charge a fixed fee for sending a letter before action of £25.00 plus VAT. This usually is the starting point and applies to all debt cases.
Thereafter, our charges are as follows:
|Debt Value||Court Fee||Our Fee (including VAT)||Total|
|Up to £5,000||Between £35-£205 depending on size of claim||£150 plus VAT||Up to £385|
|£5,000 – £10,000||£455||£350||£805|
|£10,000 – £50,000||5% of value of claim||5% of value of claim plus VAT||Up to £5,000|
Anyone wishing to proceed with a claim should note that:-
- The VAT element of our fee cannot be reclaimed from your debtor, where 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 bailiff is needed to collect your debt.
Our fees include:-
- Taking your instructions and reviewing documentation.
- Undertaking appropriate searches.
- Receiving a payment and sending on to you, or if the debt is not paid, drafting and issuing a claim.
- When an acknowledgement 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 14 days, providing you with advice on next steps and likely costs.
Matters usually take 2-8 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of judgment in default. If enforcement action is needed, the matter will take longer to resolve and will cost more.<< Back To Our Costs