Commercial Debt Collection Services
Wansbroughs provides a fast and effective debt recovery service which is tailored to your needs. Our experience is that in most cases a Solicitors letter requiring payment is effective to collect a debt and on average our 7 day letters cost £150 plus VAT at 20%. The costs of our letters vary significantly depending on the circumstances and one of those is the volume of work that we undertake for you. In a number of cases Court proceedings are required and so the costs below relate to an unpaid invoice which is not disputed and where enforcement action is not needed. In the cases of disputes it is usual that more extensive work is required to prove your claim. Debt collection where the debt is disputed and/or where enforcement action is required is therefore not covered by fixed fees referred to below.
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.
|Debt value||Court fee||Our fee (ex VAT at 20%)||Total (inc VAT at 20%)|
|Up to £5,000||Up to £205||£450||Up to £745|
|£5,001 to £10,000||Up to £455||£900||Up to £1,535|
|£10,001 to £25,000||Up to £1,250||£900||Up to £2,330|
|£25,001 to £100,000||Up to £5,000||£1,500||Up to £6,800|
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot usually be reclaimed from your debtor.
- The Court service operates a fixed fee regime in undefended cases so that the amount recovered from the debtor is subject to a cap of typically £100 to £200 unless your contract or agreement provides for recovery of legal fees which you should tell us about.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation.
- Undertaking appropriate searches.
- Sending a letter before action.
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing the claim.
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in Default.
- When Judgement in default is given, writing to the opponent to request payment.
- If payment is not received within 30 days, providing you with advice on next steps and likely enforcement costs.
In our experience undefended claims will take about two months from receipt of your instructions to entry of County Court Judgment. However there are certain factors that can affect significantly the time taken including whether the claim is defended, whether enforcement action is needed and whether the Court service processes the paperwork promptly. In any of those instances the case can take significantly longer to resolve.