Our firm structures our fees for debt recovery in relation to the various matter stages that there may be when pursuing a debt. However, please note that the costs information given is generic and more precise and personalised information will be provided in your Client Care Letter and as your matter progresses. Should you wish to discuss this in more detail then please contact Victoria Crozier for more information.
Pre-Action Stage This is the initial stage where we would send a 7 day letter (for a Limited business) or a 30 day letter (for an Individual/Sole trader) demanding payment of the outstanding debt.
7 day letter – £22.50 + VAT
30 day letter – £27.50 + VAT
Court Claim Stage
This is the next stage after expiration of the 7 day or 30 day letter where no response or payment has been forthcoming. 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 (incl. VAT) Total
Up to £300.00 £35.00 £60.00 £95.00
£300.01 – £500.00 £50.00 £60.00 £110.00
£500.01 – £1,000 £70.00 £84.00 £154.00
£1,000.01 – £1,500 £80.00 £96.00 £176.00
£1,500.01 – £3,000 £115.00 £96.00 £211.00
£3,000.01 – £5,000 £205.00 £96.00 £301.00
£5,000.01 – £10,000 £455.00 £120.00 £575.00
£10,000.01 – £200,000 5% value of claim £120.00 £To be advised
Greater than £200,000 £10,000.00 £120.00 £10,120.00
This is the next stage after the Claim Form has been issued and there has been no response from the debtor.
£25.00 – £5,000.00 £22.00 + VAT
Over £5,000.00 £30.00 + VAT
We charge 5% commission on any successful recoveries after Claim Form stage. Commission is not charged on Court Fees and costs but only on the debt itself and any interest accrued.
Anyone wishing to proceed with a claim should note that:
• The VAT element of our fee cannot be reclaimed from your debtor.
• 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
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
• When Judgment in default in received, write to the other side to request payment
• If payment is not received within a certain timeframe, providing you with advice on next steps and likely costs