One of the most common debt recovery problems that we see is where a customer has not paid a creditor for goods or services which the creditor has supplied to a customer. Often, to add insult to injury, the customer has then re-sold or used the goods during their business and profited from it. Wondering how you can recover money owed for goods sold or services provided? Then read more below.
Thankfully, the law is on the creditor’s side and with Debt-Claims Solicitors, the debt recovery process is quick, easy, and often cost neutral (the creditor will likely also be entitled to compensation and interest).
There are a few important points to note:
- Generally, debt recovery actions for goods and services are undisputed. A customer will have ordered goods or services to which the creditor supplied the same and raised an invoice. The room for any dispute is narrow and presumably if the customer had a valid concern about the quality of the goods they will have already raised this with the creditor. The rest simply refuse to pay and often cite cashflow as a reason. In these circumstances, a solicitor’s letter is often all that’s needed to get a debtor to sit-up and address the matter. At Debt-Claims, we find that around 95% of debtors make payment following our Letter Before Action and for just £12.50, you can send a letter before action to your debtor today.
- If the contract between the creditor and customer is a commercial transaction (i.e. B2B) then the Late Payment of Commercial Debts (Interest) Act 1998 entitles the creditor to interest (at 8% per annum above the Bank of England base rate), compensation per unpaid or late-paid invoice, and a sum for any reasonable costs incurred which are not covered by the compensation – this could be costs incurred by a third party chasing the debt on the creditor’s behalf, for example. At Debt-Claims, our portal identifies any matters that are commercial and gives the creditor the option to claim the relevant interest and compensation.
- If the debtor does not make payment following our Letter Before Action, then proceedings will need to be issued against them. With Debt-Claims’ portal, a Letter Before Action can be escalated to a money claim in less than 30 seconds and as the portal is integrated with the Court’s Money Claims Online system, as soon as it is submitted via our portal then it is submitted to the Court. This allows for an instant turnaround on instructions for claims, judgments, and enforcement. Crucially, for all uncontested small claims matters (less than £10,000) Debt-Claims only charges the same costs that are recoverable from the debtor and automatically adds these onto the claimed balance. This means that once a creditor has been paid, their costs are recoverable in full.
If you or your business needs to recover money owed for goods sold or services provided, then let Debt-Claims collect that money quickly and cost effectively. Once you’ve registered for free with Debt-Claims and chosen the service you require, simply choose the agreement type for goods sold and delivered, or services provided, and our portal will draft bespoke documents based on that agreement type.