Services

Debt Collection

We know that no two business operate in the same way and so we are pleased to offer a flexible debt recovery prices to best suit your business needs. We are able to provide you with a funding choice for each stage. Please see below.

These costs apply where your claim is in relation to an unpaid invoice which is not disputed and
enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any
further work required and provide you with a revised estimate of legal costs if necessary, which could be on a fixed fee, or an hourly rate if more extensive work is needed.

Stage 1: Letter of Claim

We will send a letter of claim to your debtor chasing unpaid invoices together with interest and compensation (where applicable). Matters usually take 2 weeks from receipt of instructions from you to receipt of payment from the otherside. This is on the basis that the other side pays promptly on receipt of the letter.

Pricing Choice

We are able to provide you with a choice of pricing for the letter before action on either a fixed cost or alternatively on a Damages Based Agreement. Please see the below table of costs for prices and the options available for the letter of claim.

Table of costs Option 1 Option 2
Amount Fixed Cost Damages Based Agreement (Contingency)
Range of Debt Letter of Claim % of amount recovered Assessment Fee
Up to £500.00 £50.00 25.00% £25.00
£500.01 to £1000 £150.00 25.00% £50.00
£1000.01 to £3000 £250.00 20.00% £50.00
£3000.01 to £5000 £400.00 15.00% £50.00
£5000.01 to £7000 £600.00 OR 12.00% £75.00
£7000.01 to £10,000 £750.00 10.00% £75.00
£10,000.01 to £20,000 £1,000.00 8.00% £100.00
£20,000.01 to £30,000 £1,000.00 7.00% £100.00
£30,000.01 to £40,000 £1,000.00 5.00% £100.00
£40,000.01 to £50,000 £1,250.00 4.00% £100.00
£50,000.01 to £60,000 £1,250.00 4.00% £100.00
£60,000.01 to £70,000 £1,250.00 4.00% £100.00
£70,000.01 to £80,000 £1,500.00 3.50% £100.00
£80,000.01 to £90,000 £1,500.00 3.25% £100.00
£90,000.01 to £100,000 £1,500.00 3.00% £100.00

Pricing Explained

Fixed Cost

You may prefer some certainty as to your legal spend for theletter before action, we are therefore able to offer our fees under a fixed fee based on the sized of the debt, so you know exactly how much it will cost you.

Example: If you instruct us to recover a £1500 debt, our fee payable is fixed at £250. So if we recover a £1500 debt, together with £70 compensation and £100 interest. You will only have paid £250.

Damages Based Agreement (Contingency) (“DBA”)

First we will assess your matter to see if this option is viable, this will incur an assessment fee based on the size of the debt as set out in the table above. If we proceed on the DBA and we make a recovery of the whole or any part of the debt, we shall charge you a success fee based on the percentage set out in the table above. The percentage charge will be on the debt amount recovered along with any interest and compensation recovered for you. If no recovery is made, no further fee is payable following the assessment fee.

Example: If we recover a £1500 debt, together with £70 compensation and £100 interest. Our fees will be A) £50 assessment fee and, B) £334 based on the 20.00%.(Total £384)

Our prices include: –

  • Taking your instructions and reviewing documentation
  • Sending a letter before action
  • Receiving payment and sending it on to you
  • Advice on next steps if unpaid and undisputed

Stage 2: Issue Court Proceedings & Judgment

If court proceedings are required due to non-payment of the whole debt or part of the debt, we will issue a claim form and where practical obtain a default judgment against your debtor. Matters usually take 6-8 weeks from receipt of instructions from you to receipt of payment from the otherside. This is on the basis that the other side pays promptly on receipt of the Judgment. However factors outside of our control can make this longer, such as delays at court.

Pricing choice

We are able to provide you with a choice of pricing for issuing the claim and obtaining a default judgment on either a fixed cost or alternatively on a Damages Based Agreement. Please see the below table of costs for prices and the options available for the letter of claim.

Note: If we acted for you at stage 1 and sent a letter before action for you under the DBA option, a revised DBA will take effect upon instruction from you as set out below.

Table of costs Option 1 Option 2
Amount Court Fee* Fixed Cost* Damages Based Agreement (Contingency)
Range of Debt % of amount recovered
£25 to £300 £35.00 £100.00 N/A
£300.01 to £500.00 £50.00 £100.00 N/A
£500.01 to £1000 £70.00 £150.00 30.00%
£1000.01 to £1500 £80.00 £200.00 25.00%
£1500.01 to £3000 £115.00 £250.00 20.00%
£3000.01 to £5000 £205.00 PLUS £300.00 OR 17.00%
£5000.01 to £7000 £455.00 £300.00 15.00%
£7000.01 to 10,000 £455.00 £350.00 13.00%
£10,000.01 to £20,000 5% value of Claim £500.00 11.00%
£20,000.01 to £30,000 5% value of Claim £600.00 9.00%
£30,000.01 to £40,000 5% value of Claim £600.00 9.00%
£40,000.01 to £50,000 5% value of Claim £700.00 9.00%
£50,000.01 to £60,000 5% value of Claim £700.00 8.50%
£60,000.01 to £70,000 5% value of Claim £800.00 8.25%
£70,000.01 to £80,000 5% value of Claim £800.00 8.00%
£80,000.01 to £90,000 5% value of Claim £900.00 8.25%
£90,000.01 to £100,000 5% value of Claim £1,000.00 5.00%

*Please note: Interest and compensation may take the debt into a higher banding, with a higher court fee and higher cost.

Pricing Explained

Fixed Cost

You may prefer some certainty as to your legal spend for this stage, we are therefore able to offer our fees under a fixed fee based on the size of the debt, so you know exactly how much it will cost you.

Example: If you instruct us to issue a claim on a £1500 debt, our fee payable is fixed at £150.So if we recover a £1500 debt, together with £70 compensation and £100 interest and the court fee and a fixed cost. You will only have paid £200.

Damages Based Agreement (Contingency) (“DBA”)

First we will assess/re-assess your matter to see if this option is viable, there will be no fee payable for assessment on this stage. If we proceed on the DBA and we make a recovery of the whole or any part of the debt, we shall charge you a fee based on the percentage in the table above. The percentage charge will be on the debt amount recovered along with any interest, compensation, court fee and fixed costs recovered for you.

Example: If we recover a £1500 debt, together with £70 compensation and £100 interest, £80 court fee and £80 fixed costs (as above), our fee will be £366 based on 20.00% of the total amount recovered of £1830

 

Who will deal with the matter?

Matt Perry

Matt has a demonstrated history of working in the legal industry with over 10 years experience of Legal Recoveries. Before joining Chadwick Lawrence Matt was the manager of a debt recovery department for a small law firm in Leeds where he dealt primarily with County Court and High Court money claim recoveries, Insolvency proceedings and Commercial Litigation.