UK Debt Recovery

1. The pre-action protocol complaint letter
This is a letter sent to the debtor providing them with full details of the debt, when it should have been paid and any extra interest or fees that are now payable by them.  It sets a deadline for payment and then outlines the process for a County Court Judgment (CCJ) should this deadline not be met.

2. Issuing proceedings
If our team do not receive a response to the initial letter, legal proceedings are issued through the County Court.  The Court will issue a claim form requiring the debtor to make payment of the debt (and interest and/or fees) within 14 days.  The Court fees vary according to the level of debt but our team can advise you of the same at the outset of the matter.

3. County Court Judgment (CCJ)
The Court orders the debtor to pay.  Once you have this judgment, you can take steps to enforce this judgment to collect your debt.

4. Enforcement
There are a variety of different ways you can ‘enforce’ a judgment and recover your money.  We will advise you on the most appropriate action, depending on the amount of debt and the circumstances of the debtor.  Once you have decided how to proceed, we will manage the process on your behalf, making sure you get your money back as quickly as possible.

High Court Enforcement Officer
If your debt is more than £600, this is the most effective way to recover money. The HCEO is employed by a private company and is paid on results, which means they have the incentive to collect your debt. Professional Legal Collections has a long-standing professional relationship with a team of highly skilled Enforcement Officers who promote firm but fair enforcement. Their agents visit the debtor’s premises to secure payment or to take control of the debtor’s assets to the value of your debt.

County Court Enforcement Officer
You can use this method of enforcement for debts under £600. As an employee of the Court, the CCEO is not incentivised to collect debts and this can therefore have a limited impact.

Third-Party Debt Order
This allows you to take the money from someone who holds or owes the debtor money. With this order, you can freeze money in the debtor’s bank account and recover your claim directly from their bank or other third-party.

Attachment of Earnings
Through this order, the money you are owed is paid directly to you from the debtor’s salary, as a monthly sum. The money is sent to the Court and forwarded to you. You need to know the name and address of the debtor’s employer to pursue this action.

Charging Order
This enforcement secures the debt against the debtor’s property, this secures it for the long-term until the property is conveyed. You can usually only force an order for sale of a property where your debt is over £15,000.

Order to Attend Court for Questioning
This requires a debtor to attend Court to answer questions on their finances. You don’t gain payments from this process, but it may help you understand the best enforcement method to use. The longer you leave a debt uncollected, the harder it is to recover.

The fees and costs for debt recovery services vary based on the complexity and nature of the case. The Pro Legal Group offers competitive pricing with a clear fee structure, ensuring you understand all potential costs upfront. We aim to provide cost-effective solutions for your debt recovery needs.

Unless we agree in writing a different basis of fees our standard fees for uncontested debt collection in England and Wales are broken down into 2 elements:

1. A base fee per instruction which is 10% of the debt for setting up the file and accepting the instruction plus VAT. Please note there is a minimum of £50 per matter (but we do accept instructions under £500), and we cap it at maximum of £5,000 for all matters (over £50,000).
2. In addition, we will also charge a percentage recovery fee,  as set out below, which are solely dependent upon us recovering the money, no recovery no fee.

• Debts Up to £15,000                             10% Recovery + VAT
• Debts Up to £30,000                             8% Recovery + VAT
• Debts Up to £50,000                             5% Recovery + VAT
• Debts Up to £1m                                   3% Recovery + VAT

• Our fees and the VAT cannot be reclaimed from your debtor unless you have a contractual right to do so. Interest and compensation may take the debt into a higher banding court fee and result in a higher cost.

The court fees included are as published by HMCTS in their EX50 guide which can be located here

Alternatively, we offer packages for clients who have a continued ongoing need for our services, please contact us for further information. Where a matter is or becomes contested, we confirm that all work undertaken is performed on a time-spent basis under our hourly rates via Professional Litigation Company Ltd. In addition, all advisory work undertaken by us is performed on a time-spent basis under our hourly rates. They will send you a client care letter outlining the fees and provide an estimate of the fees to be incurred. We can also work on a project or set-fee cost. In addition to our fees we also charge for all disbursements incurred without putting any mark up on them. All disbursements are payable in advance of us incurring them except for tracing fees which we will bill when there has been a successful trace. You agree to pay the tracing invoices immediately on presentation. We will ensure that we maintain at all times adequate professional insurance in the unlikely event that we fall below your expectations, and you are not satisfied by the redress under our complaints’ procedure.

Our fixed fee includes:

• Taking your instructions and reviewing documentation
• Undertaking appropriate searches
• 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 Judgment in default
• When Judgment in default in received, write to the other side to request payment
• If payment is not received within either 14 or 28 days (depending on whether the debtor is a company or an individual), providing you with advice on next steps and likely costs

Matters usually take a month from receipt of instructions from you to receipt of payment from the other side where proceedings are not necessary. If we have to issue a claim then the timescale can vary, and can often be a further month. This is on the basis that the other side pays promptly on receipt of Judgment in default. If enforcement action is needed, the matter will take longer to resolve.