The charges set out below apply in respect of business to consumer/individual debts up to £100,000 and apply where your claim is in relation to an unpaid invoice which is not disputed, enforcement action is not needed and assumes that the pre-action protocol for debt claims must be complied with (which gives the debtor up to 30 days to respond). If the debtor 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 on an hourly rate if more extensive work is needed.
If any other protocols apply to your claim we will advise you of the likely costs separately when we have further information about your particular claim.
Pre-Action Steps
We will charge a fixed fee depending on the amount of the debt as follows:
| Amount of Outstanding Debt | Our Fee (Ex. VAT) |
|---|---|
| Up to £1,000.00 | £150.00 |
| £1,001.00 – £5,000.00 | £150.00 |
| £5,001.00 – £10,000.00 | £150.00 |
| £10,001.00 – £25,000.00 | £200.00 |
| £25,001.00 – £50,000.00 | £250.00 |
| £50,001.00 – £100,000.00 | £300.00 |
In addition we will charge you VAT on the above fees (currently 20%). These fees are not recoverable from the debtor unless the contract terms allow.
Our fees set out above include:
- Taking your instructions and reviewing any relevant purchase/order documentation.
- Advising on any appropriate recovery steps
- Drafting and sending a letter before action demanding payment of the debt and any applicable interest and late payment compensation
- Receiving any payment and sending on to you
- Advising on the next recovery steps if payment is not made by the debtor following receipt of the letter before action.
Fees for Issue of a County Court Claim
The charges below apply in respect of the preparation of a county court claim form where the debtor is in England or Wales (if the debtor is resident in Scotland or Northern Ireland then it may still be possible to issue through the English Courts and if not we will advise you of any additional fees to instruct local agents).
If the debtor fails to pay following the pre-action steps and there is a need to issue a claim at Court then we will charge you a fixed fee based upon the value of your claim. You will also have to pay a fee to the court to issue your claim. Details of our fixed fees and the court fee payable are set out in the table below:
| Outstanding Debt | Our Fee (Ex. VAT) | Court Fee |
|---|---|---|
| Up to £300.00 | £150.00 | £35.00 |
| £300.01 – £500.00 | £150.00 | £50.00 |
| £500.01 – £1,000.00 | £150.00 | £70.00 |
| £1,000.01 – £1,500.00 | £150.00 | £80.00 |
| £1,500.01 – £3,000.00 | £300.00 | £115.00 |
| £3,000.01 – £5,000.00 | £300.00 | £205.00 |
| £5,000.01 – £10,000.00 | £300.00 | £455.00 |
| £10,001.00 – £50,000.00 | 5% of Claim | 5% of Claim |
| £50,001.00 – £100,000.00 | 5% of Claim | 5% of Claim |
*The range of fixed costs payable will depend on whether we need to take steps to enter a default judgment if payment is not made following the issue of the claim. For debts up to £1000.00 our fee is limited to the fixed costs recoverable from the debtor. For debts between £1001.00 to £100,000.00 some fixed costs are claimable from the debtor (in addition to the court fee) ranging between £80.00 to £170.00 depending on the amount of the claim and whether it is necessary to apply for a judgment. For debts above £1001.00 you will not be able to claim from the debtor for all of fees payable to us unless your contract allows you to make such a claim in which case we will include a provision for this when the court papers are prepared.
Please note that interest and late payment compensation (if applicable) may take the debt into a higher banding with higher costs.
Our charges as set out above include work required to process your claim to the judgment stage.
Anyone wishing to proceed with a claim should note that:
- The above fees do not include any steps to enforce the judgment. We will advise you of the enforcement options available and any applicable fees.
- The above fees do not cover any attendance at court. In the unlikely event a court hearing is required for an undisputed debt we will notify you in advance of any applicable fee for representing you at court.
- The above fees assume there is only one debtor and that the court will serve the claim without any difficulties (if service problems are encountered this may increase the fees and if so we will let you have details prior to these being incurred)
Our fees set out above include:
- Drafting the claim form and submitting the claim to court
- Receiving any payment and sending on to you
- Reporting to you any response by the debtor
- Where no Acknowledgment of Service or Defence is received, applying to the Court to enter Judgment in default (or applying for judgment when the debtor admits the claim)
- When Judgment is received, writing to the debtor to request payment.
- If payment is not received providing you with advice on next steps and likely costs.
How long will my matter take to complete?
Matters usually take between 5 to 11 weeks from receipt of instructions from you to receipt of payment from the debtor, depending on whether or not it is necessary to issue a claim and assuming no delay in the Court processing your claim for issue. This assumes that the debtor pays promptly on receipt of Judgment in default. If enforcement action is needed, the matter will take longer to resolve.
Who will carry out this work?
The work will be undertaken by Dispute Resolution. The team members are:
Stacey Pocock – Solicitor and Executive Director
Jason Skelton – Solicitor and Executive Director