Pricing Information - Undisputed debts

To help you understand the process and the potential costs involved, this page covers our pricing structure for pursuing a debt which is undisputed, i.e a person owes you money and is not paying, but is not claiming that the money is not owed.

We understand that it is important for you to understand how much it will cost you to try to recover the debt and to do this in the most cost effective manner.  This is why we have set out below our typical range of prices for undisputed debts.  The costs below apply for unpaid and undisputed payment of invoice(s). 

If during the debt recovery process, the matter becomes disputed or enforcement action is required (where you need to appoint a bailiff), we will discuss the change in fees with you and agree a way forward.  This does not cover any enforcement action which may be required to recover the debt.  Please get in touch to find out more about our fee structure for pursuing disputed debts.  

If the debt is under £10,000 then the case would go to small claims court and only limited legal costs are recoverable from the debtor, even if you are successful with your claim.  It is therefore necessary to consider whether it is appropriate for us to act for you as your legal representatives.  We can offer “unbundled” services as an alternative, so we can assist you with only distinct parts of the claim such as the preparation of your claim or your evidence for Court.  This will limit your legal costs overall.  Please contact us for fees for unbundled services.

Fee Structure

Initial fixed fee 40 minute appointment - £180 plus VAT

  • Taking your instructions and reviewing any initial documentation.

If further time is required for the initial meeting then this will be based on the time spent at the fee earner’s hourly rate.  Claire Darby’s current hourly rate is £280 plus VAT.

Stage 2 - £280-£560 plus VAT

  • Undertaking appropriate searches of the opponent;
  • Preparing a Letter before Action.

Stage 3 - £140-£280 plus VAT

  • If the debtor pays, receiving payment and sending on to you;      
  • If the debtor does not pay, attempting contact with the debtor.

Stage 4 - £560-£1,120 plus VAT      

  • If no response received, advising you of next steps and drafting and issuing the claim to Court.

Stage 5 - £140-£280 plus VAT

  • Defendant has 14 days to respond to claim.  Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default.

Stage 6 - £280-£560 plus VAT

  • When Judgement in default in received, writing to the other side to request payment.
  • If payment is not received within 14 days, providing you with advice on next steps and likely costs.

What Court Fees will apply?

The fees above do not include Court fees or other disbursements.  The amount of any Court fees to issue proceedings are set by the Courts and Tribunal Service and are dependent on the amount being claimed. 

They currently range from £35 (£25 if issued online) to issue a claim for up to £300 and can go up to 5% (4.5% if issued online) of the total claim amount for claims of £15,000 or higher (up to a maximum fee of £10,000).

Exclusions

Our fees are fixed and include items detailed above, however there may be factors which would typically increase the cost of the fees. Where there is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.

Factors that may lead to an increase in cost include:

  • More than one debtor;
  • Considerable amounts of documentation regarding the contract/work involved or correspondence between the parties’
  • Debtor cannot be located and a trace report is required;
  • Correspondence in addition to the Letter of Claim is required or requested from the client;
  • It is necessary or recommended to instruct Counsel to prepare the Court paperwork;
  • Enforcement proceedings or it is necessary to instruct a Bailiff.