Debt Collection Costs

Costs for our Debt Collection legal services

Fees for a business to business debt that is undisputed, up to a value of £100,000

We would first review the documents and send , where applicable a pre-action letter, in a hope to resolve the matter swiftly.

A review and first letter will depend on the volume of documents but range from £500 to £1500 plus vat

Debt Recovery is overseen Karen Holden the Managing Partner at the firm along with solicitors of qualification 1-5 years. Our trainee lawyers will also assist with this work to keep overall costs to a limit. In the team there is over 14 years post qualification experience as well as junior and trainee lawyers.

The costs set out below apply where your claim is in relation to an unpaid invoice or contract sum which is not disputed and the other side is UK based. 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 as per the quotes mentioned below. If the other side are based overseas this quote will need to cover third party lawyers in that jurisdiction and other fees which will be set out in advance with you.

Debt – where pre-action letter has not warranted settlement
Debt value Court fee (no VAT payable) Our fixed fee (not including VAT) for draft claim form
Up to £5,000 Scale from £35 – £205 £500 plus VAT
£5,001 – £10,000 £455 £1,000 (plus VAT)
£10,001 – £100,000 5% value of the claim £1,750 (plus VAT) of the claim plus VAT

Thereafter we charge for interim hearings at £250 (plus VAT) per hour ; applying for judgment £100 (plus VAT); settlement £200-500 (plus VAT)

Reviewing any applications £150 (plus VAT) as a guide subject to complexity

Anyone wishing to proceed with a claim should note that:

The VAT element of our fee cannot be reclaimed from your debtor, but the court fee can.

Interest and compensation may take the debt into a higher banding, with a higher cost.

The costs quoted above may not always be recovered in full , if you win, especially if it’s a small claim

There is a difference if your contract provides for legal costs , contractually, in which case we can seek to recover our costs in full (on some occasions)

If costs are not agreed they can go to assessment

Our fee includes:

  • Taking your instructions and reviewing documentation, and advising on the process and any gaps;
  • Sending a letter before action;
  • Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim;
  • Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default;
  • When Judgement in default is received, write to the other side to request payment; and if payment is not received within 21 days, providing you with advice on next steps and likely costs.
  • If a defence or counter-claim is received further costs will be provided to cover the review , any reply , attendance at hearing or otherwise.

To review and send a letter can be 2 – 4 working days , if after 14 /21 days there is no response we will issue a claim. This can then take between 4 and 14 weeks from filing to receive judgement or a defence (any backlog at the Court will impact upon the timeline and this has been known to be up to 18 months).

If the debt is disputed and/or enforcement action is needed, the matter will take longer to resolve. Where debts are disputed and/or detailed correspondence is received from the debtor, the matter will be handled by a member of our Dispute Resolution team.