Debt Collectors or Court Action?

Posted on
Which option is best for you or your business?

Being owed money from a debtor is a frustrating situation so seeking payment as quickly as possible is the obvious objective. Choosing Professional Debt Collectors or Court claim to recover your debt is a choice that should be made wisely.

It is important to understand the difference between the two and it is also important to be aware that you do not need a Court Order or a CCJ to recover a debt. This in itself is an important factor that should also be considered.

Dependant on the value of the debt and if it is disputed, you may also be looking at instructing a firm of solicitors. It is important remember that you have to pay the solicitors disbursements and fees regardless of the outcome as well as potentially any legal fees also. You can also add possible enforcement fees to this total also dependant on the route taken.

If you choose to issue your own county court claim, you should be aware that failure to follow the basic civil procedure rules in place can result in your claim being struck out with an award for costs being made in favour of the defendant if the claim is vigorously defended.

The important factors you also need to consider are actions, results, expediency and cost. There is no guarantee with Debt Collection however at Frontline, we provide a free appraisal on any debt instructions we take. We consider all the facts and apply appropriate due diligence. Only where we believe there is a reasonable prospect of recovery do we accept instruction.

As a Professional Debt Collection Agency that is results driven, we are clearly focused on recovering the debt owed as quickly as possible. Where instructed, It is not in our interests to exacerbate a situation as we are not fee earners and do not charge per hour.

With current court fees being 5% of the sum owed for debts over £5,000 – this needs to be a major consideration. There will also be further costs if the debt is disputed with hearings possibly required. In the event you are awarded a judgment in default, you can consider enforcement options such as enforcing your ccj via the high court.

In respect of a court claim; If it is a larger debt, you may consider using a solicitor to act on your behalf but be aware that many law firms may require a retainer to be paid in lieu of costings. A Solicitor will generally charge £200-£500 per hour dependant on the complexity of the case.

Also, a fact that is often overlooked. Court claims can take months to go through the civil legal system. In short, issuing legal claims can be a very timely and expensive process that may not have the desired result.

Our commission rates start from 8% for larger debts with no collection costs to pay if we do not collect. Less than 1% of the we deal with require court action and that is a fact. We charge a small instruction fee for any case we feel we are able to act on and that is it. A transparent costing policy with no hidden disbursements which is why we are the first port of call for many individuals when it comes to collecting debts.

In the unlikely event that we have to issue a claim it is done so at very minimal cost to our clients. We also specialise in the enforcement of CCJs and have High Court Enforcement Officers at hand ready to enforce payment of a writ.

Sometimes a CCJ does not cover all bases, then we can look at bankruptcy dependant on the situation. Our bankruptcy services are at no hidden cost to our clients and every debt we encounter is judged on its own merit.

We also offer a full pre sue report so that any potential claimant is fully aware of the facts relating to their debtors financial position. They will be aware if they are bankrupt, already have CCJs or any other financial misdemeanours. In addition, we provide details of any Directorships or shareholdings of Limited companies and also a check on their property for ownership details.

If you are owed money and what it collecting quickly and transparently, speak to one of our friendly New Business Team today. We will give you frank and honest advise of your options with no sales patter and no hourly rates. Think Debt Collection, think Frontline Collections. Call us now on 0333 043 4425