Debt collection companies - recommendations
Discussion
In a frustrating position with £2k now 121 days overdue from one client.
We have a valid purchase order.
Twice weekly calls and emails, but always get told it's with the FD and it's his decision to release funds.
We work in the education sector and I've never had an invoice past 50 days in 12 years of trading.
I think it's time to outsource it. Any recommendations?
We have a valid purchase order.
Twice weekly calls and emails, but always get told it's with the FD and it's his decision to release funds.
We work in the education sector and I've never had an invoice past 50 days in 12 years of trading.
I think it's time to outsource it. Any recommendations?
v8notbrave said:
Good shout, I have no direct experience but debt collectors just send letters and sound tough but actually I think have little bite. I'd get AI to draft a small claims letter and send this and self manage. Debt collectors will take a healthy chunk so try DIY?
I think you are over complicating it; I’ve successfully used money claim online to retrieve money from curry’s when they were being needlessly difficult:https://www.gov.uk/make-court-claim-for-money
sagarich said:
In a frustrating position with £2k now 121 days overdue from one client.
We have a valid purchase order.
Twice weekly calls and emails, but always get told it's with the FD and it's his decision to release funds.
We work in the education sector and I've never had an invoice past 50 days in 12 years of trading.
I think it's time to outsource it. Any recommendations?
It's not worth outsourcing for £2k. The company we use charges £750 for issuing a Letter of Claim. As suggested above I'd go down the MCOL route.We have a valid purchase order.
Twice weekly calls and emails, but always get told it's with the FD and it's his decision to release funds.
We work in the education sector and I've never had an invoice past 50 days in 12 years of trading.
I think it's time to outsource it. Any recommendations?
Dixy said:
Have you spoken to the FD on the phone at least. Debt collection companies don't do anything clever. You just have to make a damn nuisance of yourself.
No, I ask every time. He’s either “in a meeting” or WFH an doesn’t pickup routed call.Tried CC’ing everyone important to no avail.
sagarich said:
No, I ask every time. He s either in a meeting or WFH an doesn t pickup routed call.
Tried CC ing everyone important to no avail.
Start at 9am when they say he is in a meeting phone back 15 minutes later, rinse and repeat,etc etc etc, staff get weary of protecting bosses, if you want the money give them pain.Tried CC ing everyone important to no avail.
If they can pay they will pay the ones that they want off their back.
sagarich said:
Dixy said:
Have you spoken to the FD on the phone at least. Debt collection companies don't do anything clever. You just have to make a damn nuisance of yourself.
No, I ask every time. He s either in a meeting or WFH an doesn t pickup routed call.Tried CC ing everyone important to no avail.
TX.
andy_ran said:
Issue a LBA (letter before action) - send it recorded delivery and via email, enough is enough a make it clear your giving 14 days for cleared funds our your going to issue court proceedings
Small claims as under 10k limit - Its all done online and takes 30 mins
And if you win and he doesn't pay, you escalate to the High Court (simple and cheap) and then they start taking stuff away.Small claims as under 10k limit - Its all done online and takes 30 mins
As you've been calling and e-mailing twice a week for 121 days they won't suddenly pay if you call from a different number. They're taking you for a mug; get stuck in the official way.
Dixy said:
you are saying to them I will wait but get it eventually
Yes, it takes 30 days before it goes to judgement, but you also get to add interest from the date the debt was originally due. Few organisations want (or could afford) a CCJ against them for non-payment of debts so it’s pretty likely payment will be made soon after proceedings are served. Being a constant pain takes time and effort, but each to their own. Dixy said:
The official way is good but takes time and they will play the game, you are saying to them I will wait but get it eventually. Being a pain says I WANT MY MONEY NOW.
OK, we have a plan:1) ABC Debt Collectors with no powers, just to see if they can get a quick result through intimidation. Hopefully on a no-win no-fee basis.
2) The official way.
Both methods can be gameplayed but (2) has a finite ending when their computers and office furniture are about to be removed, entirely legally. That tends to open wallets.
andy_ran said:
Issue a LBA (letter before action) - send it recorded delivery and via email, enough is enough a make it clear your giving 14 days for cleared funds our your going to issue court proceedings
Small claims as under 10k limit - Its all done online and takes 30 mins
This is the correct answer. Debt collectors have no powers anyway until you have small claims court (or similar) judgment. Chances are they'd pay before court date too or risk CCJ, pretty low cost option either way.Small claims as under 10k limit - Its all done online and takes 30 mins
fooman said:
andy_ran said:
Issue a LBA (letter before action) - send it recorded delivery and via email, enough is enough a make it clear your giving 14 days for cleared funds our your going to issue court proceedings
Small claims as under 10k limit - Its all done online and takes 30 mins
This is the correct answer. Debt collectors have no powers anyway until you have small claims court (or similar) judgment. Chances are they'd pay before court date too or risk CCJ, pretty low cost option either way.Small claims as under 10k limit - Its all done online and takes 30 mins
I've done may of these and 90% of the time they then pay. The 10% who don't, usually have no money and are heading to liquidation and you'll not get anything
Debt collectors are generally pointless, as above
Good luck!
An update:
Before I wrote this thread I emailed the Principal / CEO asking for assistance. Stating I valued our relationship with the client and didn’t want to go down the legal route but had little option left.
Thankfully she replied yesterday afternoon, apologetic and stated she’d spoken with FD and the assured me the invoice will be paid in full next week.
It’s not in the bank yet, but the first written confirmation since September. Fingers crossed.
Before I wrote this thread I emailed the Principal / CEO asking for assistance. Stating I valued our relationship with the client and didn’t want to go down the legal route but had little option left.
Thankfully she replied yesterday afternoon, apologetic and stated she’d spoken with FD and the assured me the invoice will be paid in full next week.
It’s not in the bank yet, but the first written confirmation since September. Fingers crossed.
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