Stage 1: Pre legal collections Fees

Letter before action – £96 (incl. VAT) – £193.20 (incl. VAT)

We will initially send a Letter Before Action to the debtor, asking them to pay the full amount within a specified time, and stating in no uncertain terms that failure to do so will result in the start of Court proceedings which will include a claim for costs, fees and interest.

Unless you say otherwise, in all commercial debt recovery cases we will include a claim for interest and compensation costs under the Late Payment of Commercial Debts (Interest) Act 1998. Alternatively, we will claim interest at the relevant rate set out in your terms and conditions.

Stages of process:

When you instruct us to send a letter before action, we will:

  • Carry out a full credit check on your debtor, using our in-house facility if they are a company;
  • Carry out an insolvency search if your debtor is an individual;
  • Calculate any interest payable arising from your terms and conditions or late payment interest & costs from the due date of each invoice;
  • Send a letter before action promptly upon receiving your instructions;
  • Acknowledge your full instructions by email to confirm that the letter before action has been sent out, by what method and with details of the amount demanded including interest and costs if and where appropriate;
  • When the deadline in the letter expires we will contact you to check whether payment has been received, and if not we will advise you about your further options and the next course of action.

Our fee includes:

  • Initial consultation by phone/email/in person
  • Carrying out credit checks/insolvency searches on your debtor
  • Calculating the total interest payable to you
  • Issuing the letter before action and confirming with you when it has been sent
  • Receiving payment and sending on to you and/or providing advice on next steps as appropriate.

Our fee does not include:

  • Trace fees (typically ca. £50.00 for positive trace)

The fees for our service can vary depending on several factors including:

  • The amount of debt that is owed
  • The type of company owing the debt, (e.g. sole trader, company or international)
  • Complex, disputed letters or where there is considerable documentation (hourly rates may apply)

Timescales: Typical debt cases last anywhere from 2 weeks – 8 weeks to obtain payment/Judgment in default.

No Collection No Fee service*

This service includes but is not limited to additional debt recovery services such as telephone negotiations, early settlements, additional chasing and credit checking):

10% debts below £3000.00

8% debts over £3000.00

*We only accept work on a no collection no fee basis subject to approval/agreement

Statutory Demand – See hourly rates

 Alternatively at this stage a formal Statutory Demand can be made under the Insolvency Act, in place of a letter before action. This is a formal step which precedes the presentation of a Winding Up Petition against a company or a Bankruptcy Petition against an individual.

To proceed down this route the debt must be over £5000 and you must not know of any dispute in relation to your claim, or a debtor can apply to the County Court to set the Statutory Demand aside.

Stages of process:

  • A Statutory Demand must be personally served on the debtor. We will arrange this on your behalf by instructing a process server.
  • If the debtor does not pay the debt or contest the demand within 21 days of receipt, you can start formal insolvency proceedings.

Due to the formal appearance of a Statutory Demand and the possible consequences of non-payment, this is a much more aggressive and effective method of recovering payment.

A typical statutory demand will require:

·         1-2 hours preparation

·         Instructing a process server

Our fee does not include:

·         Process server fee, normally around £75.00+£90.00+VAT

  • Trace fees (typically ca. £50.00 for positive trace)

Timescales: A statutory demand usually takes about 2-4 weeks once instructions have been received and sent to the process server.

If you would like further information contact our team without obligation by calling the Debt Recovery team on 0800 088 6280 or email enquiries@rotherasharp.co.uk

Listed below are the profiles of our Debt Recovery team where you can find out more about their experience and qualifications.