Update: Holmes & Hills no longer offer a fixed rate debt recovery service. However, our specialist debt recovery solicitors are still available to offer advice, so contact us on 01206 593933.
Holmes & Hills’ team of debt recovery solicitors is pleased to announce its fixed-fee debt recovery service boasts a 94% success rate for clients*.
Holmes & Hills Solicitors acts for a range of businesses across Essex and Suffolk in recovering debts owed, such as unpaid invoices. The firm’s debt recovery process is divided into three separate stages of escalating seriousness, with a fixed-fee charged for implementing each stage and no commission payable on any sums recovered.
Stage one – Letter before action from debt recovery lawyer threatening County Court action or insolvency proceedings and chasing calls made by debt recovery lawyer
Stage two – Issuing a County Court claim or statutory demand against your debtor.
Stage three – Taking enforcement action.
Letter before action and chasing calls
Successful recovery at stage one provides the most cost-effective resolution and we are pleased to say that 97% of successful recoveries are made at this first stage.
Stage one of the debt recovery process involves Holmes & Hills sending a letter before action to your debtor threatening them with formal legal proceedings unless payment is received within seven working days. Your debt recovery lawyer will also be calling the debtor to chase them for payment where there is no response to the letter.
In our experience, it is this aspect of the stage one service which prompts the debtor to take action and make payment. Letters alone, whether from your own company or a credit agency, can be easily ignored. Whereas, letters from a debt recovery solicitor threatening formal legal action, which are followed up with phone calls from a debt recovery solicitor, are rarely ignored.
The cost of instructing Holmes & Hills to undertake stage one debt recovery action is dependent on the value of the debt owed, but fees start at just £50 +VAT. With 97% of successful recoveries being achieved at this stage, this service provides excellent value for money.
In 73% of cases, compensation and interest are also received from the debtor, in addition to the recovery of the principal sum. This is achieved pursuant to the Late Payment of Commercial Debts (Interest) Act 1998. Successful recovery of compensation (in addition to the principal debt and interest) can cover all or much of Holmes & Hills’ legal fee, making our service even more cost-effective.
Issuing a County Court claim or statutory demand
In only 3% of successful cases is it necessary to proceed onto Stage two in order to recover the debt owed. However, where the debtor has not made payment or agreed a settlement with you at stage one, following our letter and calls, we will advise you on the merits of proceeding to stage two of the process.
Stage two involves escalating the recovery through the commencement of formal legal proceedings. The exact course of action taken will depend on the value of the debt owed as well as any known information about the debtor.
Stage two, Route A involves issuing a County Court claim against the debtor. The debtor will receive papers directly from the Court requiring them to respond or settle the debt within 14 days. If the debt is not settled and a response not received, your debt recovery solicitor at Holmes & Hills will make a request to the Court that judgement be entered against them. The debtor will receive notice directly from the Court informing them that the action has been taken and ordering that the debt be paid. At this point, as well as recovering the principal sum owed, your debt recovery solicitor will also attempt to recover court fees and a fixed amount towards covering your legal fees. These sums are in addition to any compensation that may be recovered (see Recovering Compensation from the debtor, below).
Stage two, Route B involves issuing a statutory demand to the debtor. This will threaten formal insolvency proceedings (e.g. winding up the company to liquidate assets) if payment is not received. Issuing a statutory demand is only an option where the debt owed to you is over £750 (where the debtor is a company) or £5,000 (where the debtor is an individual).
If the debtor fails to respond to the statutory demand within the stipulated 21 days, your debt recovery solicitor will discuss taking recovery proceedings to Stage three.
Taking enforcement action
Only 1.5% of successful recoveries have to proceed to this final stage of proceedings in order to recover the debt. 97% of successful recoveries are made at stage one.
Most commonly, enforcement will involve your debt recovery solicitor instructing a High Court Enforcement Officer to seize goods with a view to selling them, if a payment is not made. There are however several other enforcement methods which can be utilised and your debt recovery solicitor will advise you on the best course of action to take.
If your business is owed money and you would like advice from a specialist debt recovery solicitor, call Tom Farrell on 01787 275275.
*Success rate based on the results of the 219 most recent debt recovery instructions received (and closed) as at 16th March 2017
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