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Debt Recovery Fees

Debt Recovery – Range of Fees

Jacksons has, for half a century, been synonymous with recovering money owed to clients from businesses and organisations in the North East.  We understand how important it is to maintain a healthy cash flow.  Cash flow generates business – fact.

The Debt Recovery team at Jacksons work hard to ensure our clients receive a fast and efficient debt recovery service. We recognise the need for providing our clients with certainty on the fees which we will ask you to pay, known as fixed fees. We offer fixed fees for debt recovery claims resulting from unpaid invoices, so long as the debt is not the subject of a dispute. If the debtor disputes your claim, at any point, we will discuss all future work, and provide you with advice about future costs, which might still be available on a fixed fee arrangement, or at the hourly rate of the lawyer handling your claim.

Debt value Court fee Our fee (incl. VAT) Total
Up to £5,000 £205.00 £660.00 (£110 VAT) £865.00
£5,001 – £10,000 £455.00 £840.00 (£140 VAT) £1,295.00
£10,001 – £50,000 5% value of the claim 5% value of the claim £10%

 

Anyone wishing to proceed with a claim should note that:

  • The VAT element of our fee may not be recoverable from your debtor
  • Interest and compensation may take the debt into a higher banding, with a higher cost
  • You must pay us the court fee before the claim is sent to court
  • The 5% relates to 5% of the total debt recovered by us for you
  • If we do not recover a debt in the £10,001-£50,000 category,  we will charge you £900 plus VAT, plus court fee
  • You will not have to pay a court fee if the debt is paid in full during the period stated in the letter before action

Our fee includes:

  • Receiving your instructions and reviewing your documentation
  • Undertaking appropriate searches
  • Sending a letter before action (either seven day or debt protocol compliant)
  • Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing the claim to court
  • Instructing court to enter judgment
  • When Judgement  is obtained, writing to the debtor side to request payment
  • If payment is not received with 14 days, providing you with advice on next steps and likely costs, at the same time we will quote you the costs

Work not covered by the fixed fee:

  • If we are required to carry out work which is not covered by the fixed fee, we will inform you of the additional charge in advance of incurring the costs
  • If we start enforcement action to recover the judgment, we will ask you to pay us the additional court fees
  • Advising you in relation to a disputed debt

The debt recovery process will usually last a period between three and eight weeks. Sometimes the process might take longer, especially if you agree the debtor can make staged payments, or enforcement action is needed.

 

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