At Debt-Claims, we pride ourselves on offering a comprehensive legal service at reasonable and cost-effective prices. With this in mind, we have priced our small claims matters as competitively as possible because we are firm believers in pursuing what is owed to our clients, without the worry of escalating or uncapped costs.
To issue proceedings with a value up to £10,000 (the small claims limit) we charge you a fixed cost of between £50 and £100 (plus VAT) – the exact cost depends on the value of the claim. This cost (less VAT) is recoverable in full from the defendant and is automatically added to the claimed sum. In addition, there is a court issue fee of between £35 and £455 (you can view the current fees here https://debt-claims.com/pricing/ ). The court issue fee is also recoverable from the debtor in full and is also added to the claimed sum automatically.
As a brief point, if the claim is not defended and you need to request a county court judgment (CCJ) then we charge you between £22 and £70 (plus VAT) depending on the type of judgment and value. Again, this fee is recoverable in full (less VAT) from the defendant, meaning that issuing proceedings and obtaining judgment only consists of recoverable costs, giving an overall cost-neutral position once you have been paid.
Our Costs – Defence
Where a debtor files a defence in a small claims matter, most law firms will charge an hourly rate of about £180 (plus VAT). As these costs are not usually recoverable from the debtor, once the average time of six hours has been spent, a creditor can expect around £1,300 of unrecoverable costs to be incurred and this usually is enough to deter most creditors from proceeding with the claim.
At Debt-Claims, we offer three pricing solutions to our clients:
Option A – full handling at a reduced rate of £100 (plus VAT) per hour. We complete all necessary work and only charge you for the time spent. If the matter is resolved after an hour’s work, you only pay us for one hour.
Option B – full handling for a fixed fee of £400 (plus VAT). We complete all necessary work for a fixed fee of £400. Our fee is payable irrespective of the stage that the matter is resolved at.
Option C – part handling for a fixed fee of £200 (plus VAT). We will conduct the complex elements and provide our client with a guide to completing the easier parts of the process to save on costs.
Other Costs – Defence
In addition to our costs, there is also a hearing fee payable to the court. This is currently between £27 and £346 depending on the value of the claim and can usually be recovered from the other side.
To send an advocate to the hearing on your behalf (you may still be required to attend to give evidence) will cost approximately £200 (plus VAT) and this may be recoverable from the debtor. The price can vary depending on the length and complexity of the matter and which advocates are available. It is not always necessary to send an advocate and we will discuss this with our clients on appropriate matters.
At Debt-Claims, if your claim is defended, we will provide advice and set out all costs up to conclusion, so that you can make an informed decision how you want to proceed.