recovering debt

[trackcar]

Hi all.

We are trying to recover a debt for just under 2500 pounds which is now over a year old since the last payment (the debt was larger than 2500 pounds and a small sum had been paid off but the balance is now over a year old) .. my solicitor requires 500 pounds up front before they would tackle it for me and should they not succeed that obviously increases the amount effectively owed to us to 3000 pounds , the FSB don't deal in such matters either so it seems from a recent phone call with them, so what is my best route for going about recovering the balance?

Repeated emails, recorded letters to busines and home addresses etc have gone either un-replied or replied promising payments but none turns up. We have given the other party every possible opportunity to pay the debt off including offering installment payments or one lump sum but nothing has been forthcoming for over a year. It is about 18 months since I carried out the original work for the company involved.

To add to the issue the other party's business hasn't been doing much trading over the last year due to other factors and I'm worried that they are going to fold the business leaving us with nothing, we now need to act decisively to recover the debt. (to be more specific the debt is with a company not an individual and the company is a limited company).

I've never been in the position of having to actively pursue a legal line with a customer before so I'm a bit in the dark as to what to do so any advice would be most welcome. If any PHers run a debt collection agency, or have first hand knowledge of the system I would be most pleased to hear from you (PM if you need to through my profile with specifics, the customer who's business has the debt is a PHer and I can't go into too much detail on here).

many thanks in advance

Joo.

[Plotloss]

Set JamesUK28 on them.

[mcflurry]

Plotloss said:

Set JamesUK28 on them.

Agreed

http://www.pistonheads.com/xforums/profile.asp?h=0...

[jamesuk28]

YHM, assuming said debtor (PH member) is not a client of ours we would be happy to offer some advice and recover the debt if instructed. £500 up front from a Solicitor? we operate a no recovery no fee policy, offer a PH discount, and have helped quite a few PH'ers to recover funds.

[jamesuk28]

Not heard anything via my email, PM me if there is a problem.

[Boosted LS1]

Joo, if it's an individual you need to write a short letter before action, enclosing a copy of the invoice and giving them 7 days to settle in full otherwise you'll issue proceedings at the County Court. Also inform them that they may be liable for your costs and that you'll claim interest on the amount standing. County Court can give you the forms later if he ignores your LBA. Give me a call if you like.

[jamesuk28]

With respect County Court claims are not always the most effective route, especially against limited companies. I am not going to go into how I would tackle this for obvious reasons, save to say there are far more effective methods available.

The OP has already contacted the debtor over the course of a year, another 7 day notice from them will be ignored, issuing a county court may do it, but even with judgement there is no guarantee of recovery. There are alternatives which, on experience, get quick results.

Several of our PH clients had debts going back 3 - 4 years, they were getting nowhere, without "blowing our own trumpet" we evaluated each debtor, took action and recovered all the money owed plus Interest and Statutory compensation, as well as our costs in certain cases, without setting foot in court.

Some people begrudge paying a company like mine to recover their debts, but what you are paying for is expert advice and action. It all boils down to how serious you are about actually collecting.

[Ordinary Bloke]

It sounds like it's too late for diplomacy, but I used to go and sit in the reception area of one of my customers. Everybody that came in would hear that they were overdue on their payments to me. I drank their coffee, used their toilets, chatted to the secretary receptionist, hassles passing employees. I kept going back once a week until they paid me...

[JohnSW20]

Another big up the man to James for getting my money back.

John

[Tuscan Tart]

jamesuk28 said:

Several of our PH clients had debts going back 3 - 4 years, they were getting nowhere

James recovered a 3 year old debt for us

jamesuk28 said:

Some people begrudge paying a company like mine to recover their debts, but what you are paying for is expert advice and action. It all boils down to how serious you are about actually collecting.

James is worth every penny. He does a very good job.

I have just had to give written confirmation to a client that I have called James off, that there would be no more contact from him, Verbally, written or legally. I don't know what James's methods are but they certainly work.

[trackcar]

Thankyou very much for all the advice .. have been in contact with James and he's aware of the situation at the moment, top contact so thankyou all

[gtr-gaz]

JohnSW20 said:

Another big up the man to James for getting my money back.

And me

[Dave_M]

It is not always easy to recover money and you would usually be better to put it in the hands of a reputable agent (you've just had the advantage of being put in touch with one with several personal recomendations). Yes, they will charge but the probability of you getting some or all of your money back is greatly enhanced.

Also, if clients know you will take action, you will not be seen as a soft touch (I'm not impliing you may be, merely generalising).

Good luck, if people can't pay they shouldn't buy

[jamesuk28]

Thanks to everyone who was kind enough to comment on our services, its very much appreciated.

Tuscan tart's comments should be clarified; in that a condition of the payment of the debt was that we were called off. I take that as a real compliment, and Alison your business is greatly appreciated as I hope you know.

Sorry for hijacking the thread.

PLOTLESS did you get anywhere with that bh? don't worry I have written your fee off as you have no doubt spent a few quid with lawyers. I would just like to see her pay what she owes.

[Boosted LS1]

Smart Repairer said:

Small Claims court maybe. Here's an advice site.http://www.adviceguide.org.uk/index/your_rights/legal_system/small_claims.htm 

Edited by Smart Repairer on Wednesday 30th April 13:21

Or issue a stat demand and bluff them

[jamesuk28]

Boosted LS1 said:

Smart Repairer said:

Small Claims court maybe. Here's an advice site.http://www.adviceguide.org.uk/index/your_rights/legal_system/small_claims.htm 

Edited by Smart Repairer on Wednesday 30th April 13:21

Or issue a stat demand and bluff them

We never bluff, gladly issue a winding up order or bankruptcy petition, just try us.

[Boosted LS1]

jamesuk28 said:

Boosted LS1 said:

Smart Repairer said:

Small Claims court maybe. Here's an advice site.http://www.adviceguide.org.uk/index/your_rights/legal_system/small_claims.htm 

Edited by Smart Repairer on Wednesday 30th April 13:21

Or issue a stat demand and bluff them

We never bluff, gladly issue a winding up order or bankruptcy petition, just try us.

That's good to hear but obviously an expensive approach against a man of straw so means testing before hand would be helpful. My guess is this guy has assets so a gentle squeeze should make him reprioritise who he pays next. A personal visit/service would grab his attention but I'm not here to tell you how to do your job

[jamesuk28]

Boosted LS1 said:

jamesuk28 said:

Boosted LS1 said:

Smart Repairer said:

Small Claims court maybe. Here's an advice site.http://www.adviceguide.org.uk/index/your_rights/legal_system/small_claims.htm 

Edited by Smart Repairer on Wednesday 30th April 13:21

Or issue a stat demand and bluff them

We never bluff, gladly issue a winding up order or bankruptcy petition, just try us.

That's good to hear but obviously an expensive approach against a man of straw so means testing before hand would be helpful. My guess is this guy has assets so a gentle squeeze should make him reprioritise who he pays next. A personal visit/service would grab his attention but I'm not here to tell you how to do your job

Thats why all debtors are investigated, no point issuing a demand in the first place (circa £150 if using a process server) if the company / individual has no assets. Plus you run the risk of paying the other sides legal costs if the demand is set aside and they win.

What I think you mean is, the threat of issuing a statutory demand, which is very different from actually issuing it.

[Boosted LS1]

Yep, it's a way to get somebody's attention and usually easy to serve if procedures are followed correctly. Give the guy a few sleepless nights even more if his wife knows.