- All Debt Collection will be carried out by Elaine Smith, a Solicitor with over 20 years’ experience in this area, however, Karen Fleming is the Director of this firm and has ultimate responsibility for this matter.
- Upon your initial instructions, a letter and/or email will be sent to the debtor with either a copy of the outstanding invoice or a breakdown of the outstanding amount. The cost of this service is £25.00 plus VAT at 20% which is payable on demand, whether or not the debt is recovered.
- If the debtor is an individual, the amount of the debt will be increased by 8% representing interest on late payment which is recoverable from the debtor and payable to you. If the debtor is a commercial debtor, interest and compensation will be added to the debt in accordance with the Late Payment of Commercial Debts Interest Act.
- A chasing letter and/or email will be sent to the debtor after 14 days for no extra charge.
- If the debt is recovered, you will pay a commission to this firm which amounts to 12% of the total sum recovered plus VAT at 20%.
- If the debt is not recovered and Court proceedings are necessary, Elaine Smith will draft them on your behalf for no extra charge. The Court fee is payable by you and is recoverable from the debtor in addition to the debt and interest. Court fees are based on the value of your claim:-
Claim amount up to £300.00 = £35.00
£300.01 to £500.00 = £50.00
£500.01 to £1000.00 = £70.00
£1000.01 to £1500.00 = £80.00
£1500.01 to £3000.00 = £115.00
£3000.01 to £5000.00 = £205.00
£5000.01 to £10,000.00 = £455.00
£10,000.01 to £200,000.00 = 5% of the claim value
The figures above are as at May 2021 and increase on an annual basis.
- This firm is entitled to claim fixed costs on the issue of Court proceedings. This fee is added to the debt and is payable by the debtor:-
Where the value of the claim exceeds £25.00 but does not exceed £500.00 = £50.00
Where the value of the claim exceeds £500.00 but does not exceed £1000.00 = £70.00
Where the value of the claim exceeds £1000.00 but does not exceed £5000.00 = £80.00
Where the value of the claim exceeds £5000.00 = £100.00
- If the debtor pays the sum without the need for a Court hearing, monies will be forwarded to you less the 12% commission plus VAT at 20% payable to this firm.
- If the debtor does not respond to the Court, a County Court Judgment (CCJ) in default will be drafted and obtained against the debtor, again, for no extra charge. This firm is entitled to claim fixed costs on Judgment in the sum of £22.00 for claims up to a value of £5000.00, and at £30.00 for claims exceeding £5000.00. This is payable by the debtor and is included in CCJ figure. The CCJ remains in place for 6 years and will affect the debtor’s credit rating.
- If you wish to commence enforcement proceedings against the debtor once the CCJ is obtained Elaine Smith will discuss your options with you and advise of the costs involved to pursue this through the Court.
- If the matter is disputed by the debtor at any time, and is set down for a hearing at Court, all work effected by Elaine Smith will be charged at an hourly rate of £250.00 plus VAT at 20%. Please note for debts under £10,000.00 these charges are not recoverable from the debtor even if your claim is successful at Court