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Legal Debt Collection
When your debtor fails to pay us amicably – or ‘pre-legal’ – it will be despite our full and persistent telephone negotiation, culminating in a Letter-Before-Action (LBA). When the LBA fails to provide payment, we will examine the debtor’s solvency and liquidity, and ensure that they have no stated dispute with your invoice(s). Once we can satisfy ourselves with each of these, we will recommend that you move the account to our legal service.
Legal proceedings will begin with the issuing of a Claim, where the debtor has 14 days to respond or pay, before an Application for Entering a Judgment will be made. Once the Judgment is received by the debtor, Enforcement proceedings will begin using the High Court Sheriff.
Most of the associated legal costs and fees are recoverable from the debtor, and every attempt will be made to recover the Late Payment Act interest and compensation for commercial debts, or the Court’s mandated rates of interest for consumers. For each legal account, we will charge you a Case Preparation Fee of £25, and our normal commission charge will apply to all the monies recovered, and whilst these costs are not recoverable, it’s not unusual for you to end up with more money than your debtor owed in the original debt.
Throughout the legal process you will have regular contact from the legal team to offer advice and feedback, and full information will also be available on Your Debts Online.