Why Should I use Debt-Claims Solicitors and not a Debt Collection Agency for UK Debt Recovery?
The biggest difference between us and debt collection agencies (often known as DCAs) is that we are regulated debt collection solicitors. Often, DCAs are not regulated law firms for debt recovery purposes. Whilst a lot of DCAs will conduct the pre-legal side of things (such as a letter before action) they outsource court proceedings to law firms – who all want their slice of the pie – and that leads to higher costs. Debt-Claims, on the other hand, manage every aspect from start to finish, including proceedings, enforcement, and insolvency actions if needed. Debt-Claims is your one-stop shop for business debt collection.
Is debt collection expensive?
Like any area of law, costs can put potential claimants off. However, there are established debt collection and late payment laws and rules within the UK that allow for creditors to collect debts cost effectively and claim their costs back from the debtor. Debt-Claims encompasses these rules into its pricing structure, meaning that for uncontested small claims matters (£10,000 and under) we only charge the fixed costs that are recoverable from the debtor. Once the debtor pays, you recover all your legal costs and debt collecting therefore becomes a cost-neutral exercise. Unlike some DCAs or even other debt recovery solicitors, we do not charge commission on recovery, nor do we keep any interest/compensation recovered. Our pricing is all ‘per service’ and we actually encourage our clients to claim interest and late payment compensation, meaning that often what you can recover is more than what was originally owed.
Tell me about your portal and how much control I have over the process?
Our portal is an aspect that sets us apart from other commercial debt recovery solicitors and DCAs. In a matter of moments, you can upload details about the debt and debtor and then send a Civil Procedure Rules compliant letter before action. For peace of mind, you can view the letter before action template before you submit, so you know exactly what will be send to the debtor. For debtors that engage following our letter before action, you have free unlimited use of our case management system (which is built into the portal) to directly message the debtor and agree an amicable solution. For debtors who don’t pay, our portal is linked directly to the Money Claims Online system; meaning you can issue proceedings, request a county court judgment (CCJ) and begin enforcement action. There is no need for you to go elsewhere as we provide all the services you could need.
I have a large portfolio of debtors – Can you accept bulk instructions?
Our portal is designed for anything from one-off debts to bulk instructions. Going further and depending on your systems, we can create an API link (Application Programming Interface) between our systems. This allows for near-instant referral of legal matters to us and creates a seamless recovery process for clients whose in-house efforts have been exhausted. We’ve worked with a lot of in-house credit controllers who ask what we can do to help them recover a debt. Our answer to them is simple – have an easy point of escalation to take a debtor ‘legal’. In practice, this is something that can really booster collections.
I’m worried the debtor might file a defence
As mentioned above, we’re practising debt recovery solicitors and litigation is at the heart of what we do. In wanting to provide a full and cost effective service for creditors (either business debt collection or personal debt recovery) we have fixed fee options available for defended claims. For example, we won’t charge you an extortionate hourly rate; rather, our pricing includes a fixed fee option of £400 (plus disbursements) where we will see a defended matter through to conclusion. We also have cheaper option available from £200 where we provide a more limited service, but enough to get a matter to a trial and heard by a judge.
Satisfaction guaranteed and complete control
Debt-Claims is a system that lets you instruct our solicitors quickly and cheaply (although by no means basic) but with the autonomy to decide the action you take. There are no high-pressure sales gimmicks or pushy solicitors trying to meet targets; rather we focus on openness and choice, explaining every option to clients with online articles and information bubbles at each step. Transparency is key to an effective solicitor and client relationship.
Where can I read more?
Want to find out more? Our website has a collection of guides and articles on the debt collection process, the Pre-action Protocol, insolvent debtors and much more.
