Debt recovery companies - anyone used them. Should I?
Discussion
I throw myself under the wheels of the greater PH collective in the hope of a sensible answer.
We hire cheap cars, on a long term basis.
One of my customers has decided to continue to drive the car and cease to pay me, clearly in contravention of all sorts of agreements and conventions.
No interest from the Police re theft.
A debt recovery company has offered to pursue the debt - nearly £5k now, for an initial payment of £350, plus IIRC 15% of the final bill, which will include their costs. The £350 fee is irrespective of any recovery, whereas the 15% is clearly related to the success or otherwise of the action
On the face of it, it's attractive option. I can farm off my stress and worry for £350, and look forward to a £4,200 odd cheque in the post.
But my little spider senses are tingling. Is the debt recovery co, just trying to swizzle me of £350 without making much effort to go after the dishonest individual who brought about the debt in the first place.
The debt recovery process is apparently very "can't pay we'll take it away" type thing, and have actually appeared on that very programme
Opinions and experiences actively sought.
Many Thanks
We hire cheap cars, on a long term basis.
One of my customers has decided to continue to drive the car and cease to pay me, clearly in contravention of all sorts of agreements and conventions.
No interest from the Police re theft.
A debt recovery company has offered to pursue the debt - nearly £5k now, for an initial payment of £350, plus IIRC 15% of the final bill, which will include their costs. The £350 fee is irrespective of any recovery, whereas the 15% is clearly related to the success or otherwise of the action
On the face of it, it's attractive option. I can farm off my stress and worry for £350, and look forward to a £4,200 odd cheque in the post.
But my little spider senses are tingling. Is the debt recovery co, just trying to swizzle me of £350 without making much effort to go after the dishonest individual who brought about the debt in the first place.
The debt recovery process is apparently very "can't pay we'll take it away" type thing, and have actually appeared on that very programme
Opinions and experiences actively sought.
Many Thanks
ds. Certainly on something as easily locatable as a car.
vikingaero said:
If they can trace the debtor so that you can get the car back then yes. The fact that the debtor has racked up the debt and ignored you shows they are likely to ignore any debt collection agency.
There's a firm I know and no-one wants them knocking on their door. Be a brave man to ignore them. I’ve used debt recovery companies with mixed results for unpaid workshop invoices. Totally obvious things - does the debtor have the ability to pay and are their whereabouts known ?
With cheap car rental the best view is if they can’t pay you one week they’re not going to pay you the next. Surprised you let it get so far ?
An acquaintance of mine did cheap car rental very successfully for years. Most customers were great - some of the long termers would even have tyres and stuff replaced at their own expense without bothering him. I thought about giving it a go and we had a chat. He said he didn’t want to put me off but would explain the downsides, which inevitably included people who didn’t want to pay. I’m not shy but some of the debt recovery techniques were a massive eye opener.
With cheap car rental the best view is if they can’t pay you one week they’re not going to pay you the next. Surprised you let it get so far ?
An acquaintance of mine did cheap car rental very successfully for years. Most customers were great - some of the long termers would even have tyres and stuff replaced at their own expense without bothering him. I thought about giving it a go and we had a chat. He said he didn’t want to put me off but would explain the downsides, which inevitably included people who didn’t want to pay. I’m not shy but some of the debt recovery techniques were a massive eye opener.
Edited by MuscleSedan on Wednesday 28th April 20:12
I wouldn't throw £350 at a bad debt. They will write a couple of letters, and maybe try phoning, then move onto something easier. They have no authority other than sabre-rattling.
If you have enough evidence, go Small Claims for a fraction of the cost and get the legal process rolling.When/if you win, then if they still think it's clever not to pay, escalate to the High Court.
If you have enough evidence, go Small Claims for a fraction of the cost and get the legal process rolling.When/if you win, then if they still think it's clever not to pay, escalate to the High Court.
We have used https://www.controlaccount.com/ who send nice bright red letters and is commission only! So no upfront fees!
bearman68 said:
I throw myself under the wheels of the greater PH collective in the hope of a sensible answer.
We hire cheap cars, on a long term basis.
One of my customers has decided to continue to drive the car and cease to pay me, clearly in contravention of all sorts of agreements and conventions.
No interest from the Police re theft.
A debt recovery company has offered to pursue the debt - nearly £5k now, for an initial payment of £350, plus IIRC 15% of the final bill, which will include their costs. The £350 fee is irrespective of any recovery, whereas the 15% is clearly related to the success or otherwise of the action
On the face of it, it's attractive option. I can farm off my stress and worry for £350, and look forward to a £4,200 odd cheque in the post.
But my little spider senses are tingling. Is the debt recovery co, just trying to swizzle me of £350 without making much effort to go after the dishonest individual who brought about the debt in the first place.
The debt recovery process is apparently very "can't pay we'll take it away" type thing, and have actually appeared on that very programme
Opinions and experiences actively sought.
Many Thanks
Do you want to recover the car and the debt?We hire cheap cars, on a long term basis.
One of my customers has decided to continue to drive the car and cease to pay me, clearly in contravention of all sorts of agreements and conventions.
No interest from the Police re theft.
A debt recovery company has offered to pursue the debt - nearly £5k now, for an initial payment of £350, plus IIRC 15% of the final bill, which will include their costs. The £350 fee is irrespective of any recovery, whereas the 15% is clearly related to the success or otherwise of the action
On the face of it, it's attractive option. I can farm off my stress and worry for £350, and look forward to a £4,200 odd cheque in the post.
But my little spider senses are tingling. Is the debt recovery co, just trying to swizzle me of £350 without making much effort to go after the dishonest individual who brought about the debt in the first place.
The debt recovery process is apparently very "can't pay we'll take it away" type thing, and have actually appeared on that very programme
Opinions and experiences actively sought.
Many Thanks
I imagine that the processes are different. Will the company that you engage pursue both?
As an aside but relevant.... A friend of mine runs a car finance business that deals with the sub-prime market. Although they have a loan default ratio significantly less than the prime market, they fit trackers and immobilisers to all cars until the payments are completed. If a payment is more than 48 hours late, the car is immobilised and locked remotely (obviously when it's parked) and recovered within hours unless the payment is made.
Might be worth looking at similar for you going forward?
Might be worth looking at similar for you going forward?
StevieBee said:
As an aside but relevant.... A friend of mine runs a car finance business that deals with the sub-prime market. Although they have a loan default ratio significantly less than the prime market, they fit trackers and immobilisers to all cars until the payments are completed. If a payment is more than 48 hours late, the car is immobilised and locked remotely (obviously when it's parked) and recovered within hours unless the payment is made.
Might be worth looking at similar for you going forward?
As we've gained more experience, this is exactly what we have done. Seems to work OK. Might be worth looking at similar for you going forward?
Do you know where the car is kept?
Is there anything to stop you rocking up in a breakdown truck and simply taking the car away? If you don’t want to become personally involved I’m sure there are companies who would do that for you.
If you have paperwork to confirm the car is yours then he can’t involve the police either.
Then go after him in court for the balance.
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