New fixed fee offered for undisputed debt recovery

Colin Adamson, Head of Commercial Litigation, explains the firm’s new fixed fee service offered for those pursuing undisputed debts. 

If you’re a business owner who has sent an invoice which remains unpaid, you may need the help of our debt recovery team – who can now offer a fixed fee service.

Knowing how much legal costs are means a business can budget – which is important, particularly if pursuing more than one debt.

Our fixed fee service only applies to undisputed debts; ie where a client is slow in paying, ignoring correspondence and/or reminders.

Businesses can wait as long as they feel fit before seeking legal action for an undisputed debt; but usually after sending an invoice, if after two or more reminders to pay are ignored, it can be prudent to use a solicitor.

Legal action includes sending out a letter of claim initially which must give the debtor a set time within to pay.

If this is ignored, the next step would be to issue a county court claim and if that is ignored, an application can be made for a default judgement. 

There is no requirement for a hearing but this is an automatic court order issued which awards the claimant the full claimed amount as well as interest and fixed legal costs.

The implications of this for the debtor is that the debt becomes a formal County Court Judgement (CCJ) which is publicly registered for six years, damaging their credit file.

However if they pay at that point, they can avoid this.

If you need legal help in getting a client to pay an undisputed debt, please contact Colin Adamson by emailing cpadamson@cozens-hardy.com or calling the team on 01603 625231.