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Covid-19: Debt recovery FAQs

28th May 2020

Covid-19: Debt recovery FAQs

Cash flow is critical at the best of times but you might feel it is unethical to be pursuing debts during the crisis.

Our Debt Recovery Manager, Arshad Mohammad, answers the most common questions about debt recovery in general and our fixed price solution.

What’s the catch with your 'no recovery, no fee' service?

There is no catch. It does what it says on the tin. We will progress your matter through our debt recovery strategy and if after that you have not recovered any money in respect of the debt you instructed us on, you do not pay us anything.

So what are your charges if there is a recovery?

We have a fixed fee and a commission based pricing structure to suit each client. These are detailed on our website and we can discuss these further with you.

What is an LBA?

LBA is an acronym for Letter before Action. This is sent out to a debtor before issuing legal or insolvency proceedings. It is a recommended step within the pre-action protocols to encourage early settlement and avoid costs sanctions.

During the current pandemic, is it ethical to pursue debts?

This is a concern many companies are facing. If you have provided goods or a service then it is your right to be duly compensated as per your terms of agreement. We urge clients to review their aged debt reports and pursue matters that are outstanding prior to the pandemic. However each client and each debtor is different. If the client has a good working relationship with the debtor, and it is clear the debtor is struggling due to the current situation, then they should engage with their creditor and explore all options to resolve the situation. Whether you are a creditor or debtor, do not ignore the matter. Now is the best time to talk and come to an arrangement, and our debt recovery strategy includes this level of communication.

What if I have not recovered any money within the debt recovery strategy but want to pursue it further?

We can then review your options for issuing a County Court claim or look at insolvency proceedings. We will always attempt to settle the matter without taking legal action, however there are instances where this is the only option and we will fully explore this with you.

Are the Courts open?

Some local courts are closed whilst others continue to work remotely. Most of the straightforward claims will be submitted and issued through the online portal; Money Claims Online. This has not been affected amid the pandemic, however response times to queries may be slower than usual.

What are the costs for legal action?

These are detailed in our brochure. We have fixed costs for claims up to £25,000.00. We endeavour to remain transparent with all our fees and costs.

What if I am successful and obtain Judgment but the debtor does not pay?

We would have reviewed these options with you prior to entering Judgment to determine what your enforcement options are should this situation arise. After obtaining Judgment you can enforce by way of Writ of Control, Charging Order, Third Party Debt Order, commencing insolvency proceedings to name a few.

Are the High Court Enforcement Officers still visiting properties?

Due to the safety of the officers and residents, there is a hold on High Court Enforcement Officers to visit residential addresses, however they will attempt enforcement in any alternative way (letters, calls etc).

How do I send a referral to you?

You can email us copy invoices or statements of account detailing the debt amount owed to you to our email address recover@higgsandsons.co.uk. Alternatively you can call our debt recovery department on 01384 327111 who will be more than happy to assist.

 

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Contact us

3 Waterfront Business Park
Brierley Hill
West Midlands, DY5 1LX

Email: law@higgsandsons.co.uk
Call Us: 0345 111 5050

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