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FAQ's
What is your success rate?
What do you actually do?
Are you a
member of any governing body?
What if the
debtor is Bankrupt or in
Receivership/Liquidation?
Can you provide Legal Advice?
When do I have to pay?
General Q&A
Very good. Whilst each individual debt is different most debts are resolved with
our initial approaches by letter and phone. We will usually ensure you will be paid,
normally within a few days unless:
The debt is disputed -
The debtor absconds or goes into Receivership/Liquidation/Administration -
The debtor actually has no money. -
The correct identity cannot be established -
The debt is very old
In our experience it pays to take action as soon as possible, otherwise you may find that you were too late. If a debtor has only £2000 to pay £20,000 worth of bills, they will usually pay the people that employ the Debt Collectors first.
Don't wait until the money runs out. Very often the reason you have not been paid is because your debtor has
cash flow problems and will not admit to it. They may also be waiting to see what
steps you are going to take. Once you employ our services they should realise that
it is in their own interest to resolve the matter and also that you are serious about recovering your money.
Overseas
debts do not have as high a success rate and depends largely on the country involved.
The first thing we
do is assess the debt. This usually involves a background check on the debtor.
We may also obtain reports regarding the exact make up of the debtor. The legal
status and identity details are checked and enquiries made in various databases
in order to best decide the course of action necessary. In the first instance we usually approach your debt by phone and by post. If the
debt cannot be resolved or the debtor does not respond the next step is normally
legal action but if we fail to recover the debt before legal action has been
started there is no charge. If you instruct us to start legal action you will be
advised of the costs involved. You are under no obligation to start legal
action.
We are licensed by
the FCA. Whilst not a member of the CSA we do conduction ourselves in line with
their Code of Practice which can be viewed on their website and by clicking the
link below:
Code of Practice PDF
(1.4Mb)
If I decide not to take the case further at this stage
can you help?
Yes. We have our own solicitors that can take further
action, including enforcement if you wish.
Who decides if the debt is to proceed to Litigation?
We both do. If we fail to resolve the debt with
our initial approaches we will normally proceed to Litigation if we think it is
likely to produce a positive result. However we are not obliged to do so and may
decline to take the matter further if we think we can no longer be of any
further help. You may decide to "Write it off", or transfer the case to
the high court, or use your own solicitor.
If the Debt is disputed can you help?
Yes, we can often negotiate a settlement on your behalf, you will be informed of any offer of settlement and you can then decide to accept or reject any offer.
Nobody can make a debtor pay if they really are in Liquidation etc.
However we can check to make sure that
they really are in liquidation or receivership. We will check to make sure it is
above board etc, and that you are informed of meetings and who the other creditors are. Some company's send out notices that they are going into receivership but don't actually cease trading. It
pays to check.
No. Only a solicitor is allowed to give legal advice. We are debt collectors and not solicitors. Debts are usually straight forward but if they are more complicated we will normally tell you when you should seek professional advice.
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You will be invoiced:
1 When the debt has been resolved by acceptance of money or otherwise or
2 Where the debt is settled in any way whatsoever to
us
or
directly with you or
3 Where
Judgment has been awarded or where a credit note is raised or
4
In the case where judgment has already been obtained, when a charge is secured
any asset or when an attachment of earnings order has been obtained.
5 Where you request that action is halted or suspended without reasonable explanation.
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Litigation
If there is a trial or hearing will I need to attend Court?
If the case is contested you will have to attend or send somebody that dealt with the case to explain the nature of the debt to the court.
Can somebody from
your company appear as a witness?
Subject to location and availability it is possible for somebody to attend court
by arrangement. Note: There will be a charge for this and overnight expenses will apply for travel of more than
60 miles from base.
Can you provide me with copies of correspondence?
Copies of correspondence received from your debtor will be faxed or posted to you when they are
received. An administrational charge will be made for further copies or a
written progress report.
What are the chances of the debtor paying if a
judgment is awarded?
In our experience actually getting paid depends on a
number of things. If they have the money or assets to cover all the costs then the chances of getting paid are good. Unfortunately obtaining a
Judgment and actually getting paid are often two different things. Many debtors pay up as soon as
judgment is awarded. Others pay in instalments and more pay after enforcement. Remember that some debtors don't actually have the money. Individuals on low pay or company's with no assets
may offer little chance of success, that is why we recommend a Basic Search & a Property Ownership Report before commencing legal action.
How long will court action take?
County Courts vary and some are faster than others. It usually take about 7 days after the Claim is processed for the defendant to receive it. If they don't pay immediately they have about 28 days to reply otherwise
judgment can be requested by default. If they do contest the case it can take at least a month or two for a trial date and judges directions and other things can drag proceedings into months. Enforcement can produce quick results but can also last up to a year.
Can I use Credit Reference Reports or Companies House reports in court?
All information supplied by UK Debt Collection in respect of any credit reference, enquiry, company reports etc, is supplied in the strictest confidence and cannot be used in evidence or divulged to any third party. Copies of correspondence received by UK Debt Collection and our progress reports can be used in evidence.
Can I claim the court fees, issue fee etc?
The answer is usually Yes, The court fees and interest are added onto your claim and are usually added to the
Judgment if you win your case.
Can I claim any other costs?
Depending on the amount of claim you can usually claim travelling expenses and
witness costs fixed by the court. You can ask for any reasonable expense
incurred and the judge will decide if it is relevant and should be awarded
although it is rare to recover all your costs.
Can I claim the fees charged by UK Debt Collection?
No.
Unless you have a signed contract with your debtor where they agree in advance that if you employ a debt collection company they will pay our fees it is not possible to add our fees onto yours.
What information do you need to start recovery action?
The Name, Address, Amount Outstanding & Telephone number of your debtor.
If any of the above is not known you
should run a Basic Search before Action is started. Where you do not know of any assets owned by the debtor it may also be wise to run a Property Ownership Search.
If you have to send documents only COPIES of any correspondence showing names, addresses, letterheads, business cards, compliments slips, bounced
cheques etc should be sent. Anything that can lead to establishing the "Exact" identity.
Why do you charge VAT if I am from overseas?
VAT is charged on a service which is "Not Exported". The service is performed in the UK therefore tax applies. Please contact HM Customs & Excise if you need further assistance.
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