Costs for Uncontested Debt Recovery
|Stages of Recovery||Fixed Fees (plus VAT)||Charges on Recovery|
|Upon receipt of your initial instructions this firm will send a letter before action to the debtor. This will be payable in all instances irrespective of whether any money is recovered.||
|Upon recovery of a payment, the charges will be calculated at 7% of the sum recovered up to a maximum charge of £75.00 plus VAT.|
In the event that we are instructed to issue court proceedings it will be necessary to pay the court a claim fee which is added to the debt. The court fees (a disbursement) are dependent on the size of your claim and are as follows:-
Court Fees (Disbursements)
|These fees are payable by the debtor (unless adjudged otherwise by the court), but are payable by you in the first instance.|
|In the event that we are instructed to issue court proceedings including enforcement proceedings (see 7 below) the following charges for our work involved will apply, irrespective of any money being recovered. On matters up to the sum of £1,000.00.||
|Upon payment by the debtor we will also charge 7% of the debt recovered, in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £1,000.00 up to the sum of £5,000.00.||
|Upon payment by the debtor we will also charge 7% of the debt recovered in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £5,000.00 up to the sum of £20,000.00||
|Upon payment by the debtor we will also charge 7% of the first £10,000.00 recovered plus 2% of any of the debt recovered over and above £10,000.00, in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £20,000.00 and upwards||
Upon payment by the debtor being received, we will Charge 7% of the first £10,000.00 recovered and will also charge 2% of the any sums recovered between £10,000.00 and £20,000.00 plus 1% of any sum recovered over and above £20,000.00, in addition we will also retain any fixed costs which are recovered from the debtor.
We do not charge you for our entering a judgment on straightforward matters (if your claim is defended see below), although we will retain the fixed costs which are payable by the debtor if these are recovered at any stage (including enforcement).
Enforcement proceedings will be charged as above and on the following basis (plus VAT):
|Warrant or Writ of Fi.Fa.||£25.00|
|Attachment of Earnings||£25.00|
|Application to obtain financial information *||£25.00|
|Third Party Application||£150.00 (uncontested)|
|Charging Order||£150.00 (uncontested)|
|Statutory Demands||£150.00 (uncontested)|
|Re-issue of enforcement (or Application) *||£20.00|
Depending on any terms for payment that you may or may not have agreed with the debtor, the Late Payment of Commercial Debts Act 1998 (Amendment March 2013) may mean that besides late payment interest and compensation that we might be able to recover for you further reasonable costs, i.e. if the reasonable costs of a supplier are not met by the fixed sums recovered, the supplier shall also be entitled to a sum equivalent to the difference between those fixed costs and those costs. For example on each invoice that is due for payment which is below £1,000.00 we may include a claim for £40.00 compensation, on each invoice that is due for payment between £1,000.01 to £10,000.00 £70.00 compensation and on each invoice that is due for payment above £10,000.01 £100.00. If these costs are recovered they may be sufficient to offset our costs in some instances.
In order to assist you the following are some examples/scenarios of how our charges are calculated (these examples exclude any interest that we may also be able to recover for you):
|Stage||Amount of invoices||Disbursements payable by you||Late payment compensation||Amount recovered||Charge to you including VAT||Total cost to you|
** the 20 above calculations all exclude any Solicitors Costs which the debtor may also be required to pay.
Typically our costs for dealing with non contentious matters may range between £15.00 plus VAT to £800.00 plus VAT. Should you require further examples please speak to a member of our team who would be pleased to assist you.
You will be liable to pay any disbursements and expenses that are required to carry out your instructions (such as Court fees, Agents fees, Searches etc). These will be advised to you before the work is undertaken unless otherwise agreed. Travel disbursements may be incurred in attendance to Court. VAT is payable on certain expenses.
In the event that we are no longer instructed to deal with a matter after we have issued court proceedings, you will be required to pay us our costs as detailed herein, together with any fixed costs (Solicitors Costs) that you are entitled to recover from the debtor.
Unless otherwise agreed in writing, we will receive payments on your behalf from your debtors and we will arrange to forward these payments to you upon receipt of cleared funds. In instances where it is agreed to accept payment by instalments these will be forwarded to you when it is economical to do so. We reserve the right to charge a fee of £30.00 plus VAT for administration (for every 6 months of the arrangement).
Contentious or Defended Matters
Costs for uncontested Debt Recovery are as above, however, if a matter becomes Contentious or Defended our fees are based on the amount of time we spend on your matter/s.
Our hourly rates are:
|Debt Collection Manager. Grade C (Legal Executives)||£181.00 plus VAT|
|Assitant Solicitor Grade (dependent on grade and status)||Between £181.00 - £260.00 plus VAT|
|Partner||£300.00 plus VAT|
Should the other party(s) not agree that the debt that you are seeking is owed to you, due to the complexity of arguments that may be put forward we cannot say with any certainty as to the likely costs that will be incurred in dealing with your matter, we will however provide you with a cost estimate in respect of the work which may be involved, once we have received full details of their objections to paying you.
NOTE: ‘Our Charges’ are the sums which will invoice you for carrying out your instructions
‘Disbursements and expenses’ are costs that may be required to carry out your instructions (such as Court fees, Agents fees, Searches etc) in order to progress your matter. Not all disbursements are recoverable from a debtor.
Solicitors costs’ are fixed amounts that may be added to court proceedings as a court claim progresses and which the Debtor will be required to pay.
Should you require and further explanation regarding any matters herein please speak to a member of our team who would be pleased to assist you.
Responsibility for Work
We each share a commitment to providing you with the quality of service to which we believe you are entitled. Eric Holt will carry out most of the work on your matters. He is a Legal Executive (Grade C) specialising in debt recovery work with a wealth of knowledge gathered over 40 years of experience. Eric is supervised on a daily basis by Neil Andrews who is Solicitor and Partner with this Practise, and who is ultimately responsible for debt recovery matters.
Get Expert Legal Advice
For an accurate quote for your debt recovery matter, please contact Coles Miller today using the form below or request a call back.