We appreciate that the fees involved in debt recovery are important to you.
We review our fees on a regular basis, considering client’s feedback, to ensure we continue to offer a cost-effective debt recovery service.
We typically work on a fixed fee basis, so that from the outset you know what the fees will be for your transaction.
We appreciate that the fees involved in debt recovery are important to you. We review our fees on a regular basis, considering client’s feedback, to ensure that we continue to offer a cost-effective debt recovery service.
We typically work on an agreed and normally fixed fee basis in respect of the work required, so that from the outset you know what the fees will be for your transaction.
Whilst every matter will be individually assessed, a typical range of costs for debt recovery matters is as follows. It should be noted that the exact costs may differ in respect of matters of a more complex nature.
- Taking your initial instructions and reviewing the primary documentation relevant to your debt. Costs range between £200 plus £40 VAT to £350 plus £70 VAT.
- Preparing a formal Letter Before Claim, compliant with the relevant Pre-Action Protocol. Any Letter Before Claim prepared by this Firm will be drafted on a bespoke basis for your individual claim, to ensure that this specifically addresses the distinct issues and facts of your matter. Costs range between £200 plus £40 VAT to £400 plus £80 VAT.
- Drafting and issuing formal Court proceedings, to include the drafting of all the necessary documentation including the Claim Form and Particulars of Claim. Costs range between £350 plus £70 VAT to £750 plus £150 VAT. In addition to these costs a Court issue fee will be payable (as explained below).
- Formally applying to the Court to secure Default Judgment, where the debtor fails to file their Acknowledgment of Service or Defence. Costs range between £100 plus £20 VAT to £150 plus £30 VAT.
Our fees are calculated on the basis of the exact time spent on the work involved, based upon our prescribed hourly charging rates. Our hourly charging rates range from £118 plus £23.60 VAT per hour for Trainee Solicitors to £217 plus £43.40 VAT for Partners.
If during the debt recovery process, the matter becomes disputed or enforcement action is required following successful recovery, we will discuss the applicable costs with you and agree the way forward. The above fees are based upon undisputed debts and where the claim becomes disputed or enforcement action is needed, we will discuss the further costs with you.
When claiming costs from the debtor, it is important know there are certain limitations on the recovery of costs and we will advise you on the relevant position applicable to your individual circumstances.
If it becomes necessary to issue formal Court proceedings, you will also be required to pay various Court fees to pursue such a claim. These Court fees are structured based on the value of your claim, for example the current Court fee if the value of your claim is worth between £1,500 to £3,000 is £115, whereas if your claim is worth over £10,000 then the Court fee payable is a sum equal to 5% of the overall value of the claim. We will always advise on the applicable Court fees at the relevant time.
If you are successful if respect of your claim, then you are typically entitled to recover these costs from the debtor.
Our fees are ordinarily fixed and we also provide specific advice on any additional Court fees or other disbursements involved in the recovery of your debt. There may be factors which could increase the cost of the fees, but we will advise you of these, as and when they arise. Where there is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.
As you will appreciate every debt recovery matter is different, from instruction through to payment from the debtor. We will always keep you informed on the relevant timescales.
The workload and timetable of the Court will often dictate how quickly Judgment can be secured on an undisputed debt. However, if a claim is not disputed the average period between submitting the claim to the Court and obtaining Judgment in Default is around 7 to 8 weeks.
With any recovery there are key milestones, which may vary according to individual circumstances. We aim to structure our fees around these key milestones, so that the costs are suitably managed.