Reference to VAT is at its current rate of 20%
Prettys’ dispute resolution solicitors offer an all-encompassing service designed to meet the needs of our corporate and commercial clients. This includes a bespoke debt recovery service for clients with outstanding debts. In the majority of cases this will be a case of Business to Business debt. If a debt is owed by an individual or sole trader, the Pre-Action Protocol for Debt Claims will apply and our debt recovery team will be able to advise you on the costs involved.
Business to Business debt that is undisputed
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party 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 an hourly rate if more extensive work is needed.
Debt Collection Letters
Our fee for preparing and sending a letter to a debtor in respect of a debt ranges from £10 to £50 plus VAT for each letter required.
County Court Claims
| Debt value (including Interest) From - to |
Court Fee | Our Fee (exc. VAT) | Recoverable from debtor |
|---|---|---|---|
| £25 - £300 | £35 | £60 | £85 |
| £300.01 - £500 | £50 | £60 | £100 |
| £500.01 - £1,000 | £70 | £85 | £140 |
| £1,000.01 - £1,500 | £80 | £100 | £160 |
| £1,500.01 - £3,000 | £115 | £105 | £195 |
| £3,000.01 - £5,000 | £205 | £110 | £285 |
| £5,000.01 - £10,000 | £455 | £140 | £555 |
| £10,000.01 - £200,000 | 5% of the claim | £160 | 5% of the claim & £100 |
Requests for Judgment
Our fee for Requesting Judgment in Default (where no Acknowledgment of Service or Defence has been received) is £30 plus VAT if the amount of the Judgment does not exceed £5,000 or £40 plus VAT if the amount of the Judgment exceeds £5,000.
Anyone wishing to proceed with a claim should note that:
· The VAT element of our fee cannot be reclaimed from your debtor.
· Interest and compensation may take the debt into a higher banding, with a higher cost.
· The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fees include:
· Taking your instructions and reviewing documentation
· Undertaking appropriate searches
· Sending letters seeking payment of the debt
· Sending a letter before action
· If the debt is not paid, drafting and issuing a claim
· Where no Acknowledgment of Service or Defence is received, requesting that the court enter Judgement in Default
Timing
If it is not necessary to issue proceedings, matters usually take between 1 and 4 weeks from receipt of instructions from you to receipt of payment from the other side. Issuing proceedings and obtaining judgment in default against a debtor can take a further one to three months depending on the speed with which the court processes the claim. If enforcement action is needed following judgment, the matter will take longer to resolve.
Our team
Peter Blake – Partner
Peter qualified as solicitor in 1987 and became a partner in 1991. He supervises the debt recovery team. His practice focuses on the resolution of commercial disputes with particular emphasis on the construction and engineering sector and disputes with an international element.
Michael Booth – Associate
Michael trained with Prettys and qualified as a solicitor in 2017. Michael has a broad based practice covering disputes for commercial and personal clients ranging from small claims to multi million pound claims and appeals. Michael runs Prettys’ debt recovery service on a day to day basis.
Alison Green – Paralegal
Alison joined Prettys in 2010 after working for over 20 years in the City as a paralegal. Since joining, she has been a key member of Prettys’ “Netchaser” debt recovery operation. She now heads the operational side of Netchaser and is a senior member of the debt recovery team.
