Debt recovery charges

In undisputed claims, we anticipate carrying out the following stages of work:

Stage 1: Pre-Action steps: our fee £150 plus VAT

1. Obtaining detailed instructions and discussing client objectives;

2. Preparing a Letter Before Claim and/or letter to the debtor; and

3. Reporting on any response received:

Stage 2: If no response and the debtor has a lender (this largely applies to service charge matters): our fee £150 plus VAT

4. Writing to the lender to request payment. Whether or not the lender pays will usually depend on the lender’s own policy. Some lenders will pay provided the sums are not in dispute by the debtor (tenant in this instance). Other lenders will only pay once there is a genuine threat to their security e.g., risk of forfeiture of a lease.

Stage 3: Assuming the debtor fails to pay the outstanding debt by the date on the Letter Before Claim: our fee £650 plus VAT

5. Checking the merits of a money claim: and

6. Preparing and issuing a claim form and particulars of claim.

Stage 4: Default Judgment: our fee £100 plus VAT

7. Upon receipt of the issued claim, advising on appropriate timescales;

8. If the debtor fails to respond to the claim by the appropriate date, filing a request for default judgment;

9. Alternatively, notifying you of any Defence filed by the debtor (this does not include any advice on the Defence);

Our total fee on a straight forward undisputed debt claim is: £1050 plus VAT

For your information we use the term ‘disbursements’ to mean any costs or expenses paid or to be paid to a third party on behalf of a client (including any VAT element) except for office expenses such as postage and courier fees. This means that in addition to our fees, you will be responsible for any expenses incurred, including the court issue fee. Below is a summary of what you can expect to pay on an undisputed debt claim up to the point of obtaining Default Judgment: