Debt recovery

"Widely regarded as one of the most effective debt recovery services in the credit industry."

Having an effective debt recovery system in place is a must for all businesses – the firm's Debt recovery service has considerable experience in dealing with uncontested cases for all organisations. With particular expertise in the recruitment, logistics, leisure, audiovisual and professional services fields it provides a quick, efficient and cost-effective solution.

The Debt recovery service deals with the collection of all uncontested debts from the issue of a letter before action or letter of demand through to the issue of proceedings, obtaining of judgment and enforcement thereof including insolvency proceedings.

With a real understanding of the pressures, targets, and deadlines faced by credit controllers and managers, the service operates as an extension to a client's credit control departments.

The service is supported by a recognised debt recovery software package allowing clients to have access to all their existing cases at any time of the day or night.

We have 4 members of the team who may work on your matter. Regardless of who works on your matter, they will be supervised by Donna Goddard, Head of Debt Recovery, who has over 28 years’ experience working in debt recovery. For details of the team click here.

Debt recovery fees

Boyes Turner’s debt recovery team charges fixed fees for all business to business undisputed debts up to £100,000.

The following fees are charged by us when a claim is made for an unpaid invoice which is not disputed and no enforcement action is needed. If the debtor disputes your debt we will discuss any further work required and provide you with advice about any additional charges.

  • Demand letter 
    The first step is to send a demand letter to the debtor. This will cost £20 + VAT. This fee includes taking your instructions, reviewing documentation, carrying out any credit searches, and paying the debt to you when received from the debtor.
     
  • Court action
    If, after the period specified for payment in the demand letter expires, the debt is not paid, the next stage is to begin court proceedings against the debtor. To begin a court claim against the debtor costs £115 + VAT plus a court fee. This fee includes the cost of obtaining a court order against the debtor if no response is received from the debtor after 14 days from the date the court claim is sent to the debtor. The court fee to be paid varies depending on the size of the debt claimed. Details can be found here.

Timescales 

Recovery from the debtor of an undisputed debt of up to £100,000 can typically take between 7 and 30 days. 

This is assuming that the debtor either pays on receipt of the demand letter or on receipt of the court order. Once a court order has been obtained, if payment is not made, enforcement action will need to be taken to compel payment by the debtor. 

At this stage, we will provide advice on the next steps and fixed fees depending on which course of action is most suitable for your case. 

Statutory Demand

As an alternative to sending a demand letter or taking court action, you can serve a Statutory Demand which will cost £150 + VAT plus process servers fee which can range from £75 to £250 + VAT.  

You are entitled to claim late payment interest and collection costs which range between £40 and £100 and are added to the total debt claimed. You are also entitled to ask the debtor to pay fixed solicitors costs which range from £50 to £100 and an additional, £22 to £55 when requesting a court judgment. 

If the debt is disputed at any stage, we will discuss and advise you of the relevant fixed fee to proceed.

Example

Debt of £5000

  • Fixed costs for sending a demand letter and obtaining a court order *
    £20 + VAT and £115 + VAT = £162 (inc. VAT)
  • Court fee **  
     £205 
  • Total expense = £367 (inc.VAT)
* Fixed costs can only be claimed from the debtor where there is a clause in the terms and conditions of your contract with the debtor which entitles you to recover third-party/legal fees.  If you don’t have an agreement, you can only recover a proportion of your fees, linked to the size of the debt. We can advise you about the amount you are entitled to recover when you instruct us.

** The Court fee is claimed from the debtor regardless of the terms of your agreement. 

If you have any questions about our fees or would like to use our debt recovery service then please contact us.

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A Statutory Demand is a formal 21-day demand for payment issued by a creditor to a debtor. If a creditor is owed a debt from an individual, a sole trader or a partnership.

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Debt recovery tip 3 - Put a credit policy in place

In 2018 the Insolvency Service recorded that Company insolvencies were at their highest level since 2014, with a slight increase of 0.7% on 2017. With this in mind, businesses need to focus on tight cash flow across all areas and understand the importance of putting a credit policy in place.  

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Boyes Turner are proud to have received the following awards and recognition.

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