The debt recovery process is a vital component of the UK’s financial ecosystem, yet it must be executed with precision, ethics and a clear commitment to fairness. At Debt-Claims Solicitors, we provide businesses with an efficient, fixed-cost, online platform to manage the legal recovery of undisputed debts.
However, even straightforward claims can encounter situations where a debt is vociferously and justifiably disputed. The high-profile case of Camelia Gonciulea, where a bakery owner was erroneously chased for a staggering £24,000 energy bill, a result of criminal activity next door, highlights the critical need for robust verification. The energy company, Unicorn, eventually had to instruct collectors to cease all recovery actions. Such an error highlights the difference between pursuing a simple invoice and navigating a complex legal dispute.
When a debt we are instructed to pursue becomes contested, our protocol fundamentally shifts from an automated, fixed-fee system to a formal, legally complex contested litigation process. Our operational framework ensures that when a debt is disputed, our actions are immediate, fair, and compliant with all UK regulations.
The Debt-Claims Protocol for a Disputed Claim
Our process is built around immediate action and thorough verification, converting the core steps a debtor would take into our mandatory internal workflow.
1. Immediate Flagging of Dispute (Do Not Ignore the Issue)
When a debtor raises a formal written defence, counter-claim, or clear denial of liability, the first step is to ensure the issue is not ignored.
- System Halt: All automated proceedings (e.g., filing for Default Judgment) are immediately suspended on the Debt-Claims portal.
- Notification to Client (Creditor): The client is promptly notified that the debt is now disputed and is no longer suitable for the fixed-fee, automated service. This action prevents the situation from escalating further while the claim is challenged.
2. Case Review and Re-Instruction (Dispute the Debt in Writing)
A written dispute triggers a necessary escalation to specialist legal advice.
- New Retainer Required: Debt-Claims Solicitors advises the client that a new formal retainer is required to engage our services for contested debt recovery proceedings. This covers the higher legal costs and complexities of litigation.
- Risk Assessment: Our solicitors perform a preliminary legal assessment of the defence raised by the debtor (e.g., mistaken identity, fraud). This ensures that we, on behalf of our client, are not pursuing an unjust demand that threatens to derail a debtor’s life or business.
3. Verification and Disclosure (Verify the Debt)
Once the new instruction is confirmed, the focus shifts to proving the debt’s legitimacy, which is the debtor’s legal right.
- Evidence Review: We compel the client (the original creditor) to provide full and complete documentation verifying the debt and refuting the debtor’s claims, including the original creditor, the amount owed, and evidence linking the debtor to the debt.
4. Resolution and Credit File Management (Check Your Credit Report)
If the matter cannot be resolved through negotiation, or if the dispute reveals an error, the firm takes action to ensure fair practice.
In Summary
By maintaining strict ethical standards and following the proper steps, Debt-Claims Solicitors adheres to all SRA guidelines, thereby protecting our clients and anticipating the debtor’s potential need to seek legal advice. Remember, taking a proactive, legally compliant approach is the best way to ensure that the issue is dealt with quickly and effectively.
