Our Commercial Debt Recovery Costs
No matter what legal assistance you require, Enoch Evans LLP always recommends that you speak with a member of our specialist team in order that a quote can be personally tailored to your specific circumstances. Please call us on 01922 720333 (Walsall), 0121 355 2336 (Sutton Coldfield), 01543 466941 (Cannock) or email firstname.lastname@example.org
The costs and charges set out in this document apply to non-disputed debt recovery work undertaken by our Commercial Debt Collection Service.
If, for any reason, the work that we are instructed to carry out does not fall within our Commercial Debt Collection Service, we will raise this with you and discuss our proposed charges, and let you have our relevant Terms of Business.
When you first use our commercial debt recovery service or should there be a substantial period of time between your instructions to us, we will have to complete a money laundering check. We currently charge £20.00 plus VAT per person or entity for each money laundering check we have to complete, this includes the cost of carrying out an electronic anti money laundering check and electronic client identification search.
*VAT, currently 20%, will be payable on all our fees and some disbursements. We will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.
Matters usually take 2 - 16 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve
“Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 28 days from Judgment in Default being entered, providing you with advice on next steps and likely costs
STAGE 1 – Threatening a claim
- Letter Before Action (“LBA”) to be sent to the Debtor and Letter of Engagement (if appropriate) or letter/e-mail confirming your instructions – £5.00 plus VAT.
- Each subsequent communication with either you, the defendant or any other third party by letter, email or telephone – £5.00 plus VAT.
If the Debtor is outside England and Wales our relevant Terms of Business will apply to all work after stage one, a copy of which will be sent to you.
STAGE 2 – Issuing Proceedings
- If we have received no response to the LBA, we will begin preparation of Stage 2 on the next working day after the expiry of the deadline contained within it, unless we hear from you to the contrary. You are obliged to notify us on or before the expiry of the deadline contained within the LBA if the Debtor has made payment, or whether there is any other reason why you do not wish for us to proceed to Stage 2. If we do not hear from you by then, then the Stage 2 costs below will be incurred.
- Preparation of Court papers, sending drafts to you for approval: in anticipation of issuing Court Proceedings will cost between £75 – £250 plus VAT depending upon the size of the debt.
Registered Office search if required – £2.50 plus VAT.
- We will provide you with the draft court documents, an invoice for Stage 1 and Stage 2, a form of consent to issue proceedings and a request for the applicable court fee when we send the draft papers to you for approval.
- If papers are sent to the Court then we must pay a fee to the Court Service. A list of the current Court fees is attached. You will need to let us have the Court fee in advance when confirming your instructions to proceed by returning the consent form to issue proceedings.
STAGE 3 – Response
- If the Debtor makes no response to the Claim though the Court:
- We will enter Judgment in default – £100 plus VAT.
- If the Debtor disputes the claim:
- The work will be dealt with at the applicable hourly rate in line with our relevant Terms of Business which will be sent to you.
- If the Debtor admits the claim or makes proposals for repayment:
- If we are instructed to enter into negotiations with the Debtor on your behalf at any stage, or in the event of an instalment payment plan being accepted by you or ordered by the Court, our relevant Terms of Business and hourly rates will apply.
STAGE 4 – Enforcing the Judgment
- Enforcement action (action taken to recover the sum awarded by the court using the methods listed below) will be undertaken subject to the following fees structure. The invoice or Stage 4 will be sent to you upon receipt of instructions from you to proceed with enforcement action and this stage will cost between £20 and £1500 plus VAT depending upon the size of the debt
- The above charges apply to the following enforcement action (depending on the value of the judgment):
- County Court Bailiff – preparation of warrant of execution, issuing warrant of execution and liaising with Bailiff.
- High Court Enforcement officer – preparation of writ of control, issuing writ and liaising with officer.
- If a Bailiff or High Court Enforcement officer is instructed then we must pay a fee. A list of the current fees is attached. You will need to let us have this fee in advance.
- The Enforcement officer will recover his costs from the Debtor. If he cannot make a recovery from the Debtor he will charge a fixed abandonment fee which will be payable by you. Details of this are attached.
- A County Court Warrant and High Court Writ of Control are both valid for 12 months, unless they are abandoned. At that point it may be necessary to either renew or to re-issue the Warrant or Writ. We will discuss the cost of doing so with you at that time.
- Other methods of enforcement may be appropriate, depending upon the circumstances of each claim. If so, we will discuss these with you individually together with the likely cost of any particular step that needs to be taken.
Recoverable Solicitors Costs
If we successfully recover fixed recoverable costs for Stage 2 (Issuing proceedings), these will be paid to you upon receipt from the Debtor, provided always that all invoices have been paid. If any fees remain outstanding to us, we reserve the right to pay those outstanding fees using any recoverable fixed costs or other payments received from the Debtor. In any event, you will remain liable for payment of our fees.
These costs vary depending upon the size of the debt and will be collected directly from the Debtor if and when the debt is paid. They are in addition to the fixed costs we charge you. Further recoverable costs fall due at Stages 3 and 4 (Response and Enforcement respectively), which we will retain. Recoverable costs are set by the Court and are subject to change from time to time. A list of the current recoverable costs is attached.
In the event that an agreement is reached between you and the Debtor to allow the Debtor to disregard part or all of the recoverable Solicitors costs, those costs will in any event be payable by you to us.
If the Debtor admits the debt, including recoverable Solicitors costs, but pays you by instalments then we reserve the right to invoice you at any time for those recoverable costs, making appropriate adjustments for any part of those costs received by us.