How Debt-Claims Solicitors Collected £32,000 Owed to a Client for Just £12.50
Challenge
We were recently instructed by a client who was owed £32,000 for goods and services provided by our client to theirs. Despite repeated requests by our client for payment to be made, the debtor failed to adhere to the terms of the contract and withheld payment, despite having no dispute or defence.
Where other law firms and Debt Collection Agencies can charge anywhere between 10 and 20% commission on any balance collected after their instruction (on top of legal fees and disbursements) Debt-Claims’ operate on a fixed low-fee approach. This approach means that irrespective of value, our client only pays a set fee, this reinforces our standards that small as well as big debts deserve equal priority – we would never refuse to take instructions on low value debt on that basis alone. Ultimately, it also means that a successful recovery would be significantly less-expensive for the client.
Solution/Our Approach
The client registered for our portal and after considering the options available to them, instructed us to send a Letter Before Action. The total registration and instruction process took them less than a few minutes and the instruction was processed and sent to the debtor immediately.
Our Letter Before Action set out our client’s position (that money was owed to them) and demanded payment of the same, failing which, Court proceedings would be issued. Whilst our client in this case did not want to claim interest on the money owed to them, they were nonetheless entitled to it. As well as providing details of the debt and the contractual basis it was owed upon, our Letter Before Action provided bank details for immediate payment.
Result/Outcome
Our invoice to the client remained at just £12.50 (plus VAT) and our client was delighted at the very in-expensive and quick turnaround of their instruction to us.
If you or your business are owed money and you want to instruct solicitors on a fixed low-fee basis, then register with us for free, and instruct us online, in less than a few minutes
