We aim to offer fixed fees wherever possible to provide clarity and certainty for our clients. In respect of debt recovery matters we can offer fixed fees for drafting and issuing the initial pre-action letter in respect of the debt. Prior to issuing a claim there are various pre-action protocols that are required to be adhered to. You must send a letter to the debtor that is compliant to those rules.
Our fees for drafting the pre-action letter are as follows;
- For debts of up to £10,000 – £180 plus VAT;
- For debts exceeding £10,000 – £750 plus VAT
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, if the debt is paid.
- Advising you verbally of any response we receive from the debtor.
For Debt Claims of over £100,000 please contact a member of our Litigation team for information regarding costs.
Debt recover matters usually take 90 days from receiving your instructions to receiving payment from the other side. This is dependent upon the other side making prompt payment of the debt due. However, should it be necessary to issue a claim then this timescale may be extended as the matter will be subject to the court’s directions.
If the debt is not paid following the letter before action all further steps in regards to proceeding with the claim will be charged at your representative’s hourly rate as detailed above. At each stage of the claim your representative will advise you as to the likely costs to be incurred. You would also be required to pay the court issue fee which is dependent upon the amount of money claimed. The courts fees are as follows; –
|Value of Claim||Court Fee|
|Up to £300||£35|
|£300.01 to £500||£50|
|£500.01 – £1,000||£70|
|£1,500.01 – £3,000||£115|
|£3,000.01 – £5,000||£205|
|£5,000.01 – £10,000||£455|
Anyone wishing to proceed with a claim should be aware that:
- You cannot reclaim the VAT element of our fee from your debtor.
- Any interest and compensation may take the debt into a higher banding, which would therefore mean a higher court issue fee.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
We pride ourselves on giving you all your funding options – it may be that you have insurance which will cover your legal fees. However, you fund your case, we offer proactive, professional advice which you can depend on.
Contact us today on 0330 088 2275 or provide your details below and we’ll be in touch.
- Commercial Agreements
- Employment Tribunal Claims
- Employment & HR Services
- Wills, Probate & Estate Planning
- Partnership Disputes
- Debt Recovery
The team at FTA Law provides advice to clients across the commercial and healthcare sectors with many of our instructions coming from referrals from long standing clients and industry contacts.Contact us
We understand that price is a big concern for our clients and we always aim to offer a fixed fee for our services.