These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not required.
If the other party disputes your claim at any point, we will discuss with you your options and any further work required and provide you with revised advice about costs, which could be on a fixed fee basis (e.g. if a one off letter is required), or an hourly rate basis if more extensive work is needed, which will usually be the case.
Company – Letter of claim: £75 plus VAT
Individual/sole trader – Letter of claim: £125 plus VAT
This fee includes taking your instructions, preparing and sending the letter of claim to the debtor and reporting back to you on the outcome.
Timescale: Letters of claim sent to companies usually require the debtor to pay within 14 days, but letters to individuals provide for a 30 day period which can be extended to up to 90 days under guidance published in the Civil Procedure Rules. Letters of claim will usually be sent within 10 working days from the date of receipt of your full and detailed instructions. We may need to request that you supply some further information before the letter of claim can be sent which may delay matters.
A Debtor may propose payment by instalments once a letter of claim is sent. Should this happen then the following fees will apply. This will include liaising with you to ensure that the payment arrangement is acceptable to you.
Attempting a negotiation with Defendant for a payment arrangement
(Maximum 3 letters out & 20 minutes attendance) £75.00 plus VAT
Once a payment agreement is in place charge per letter as required £10.00 plus VAT
Court Proceedings – Undisputed Debt Recovery Claims up to £100,000
Where Court proceedings are necessary then the court fees and our costs for preparing the Claim Form and Particulars of Claim are as follows:
|Value of Debt||Court Fee||Our Fees|
|Up to £300||£35.00||£90.00 plus VAT = £108.00|
|£301-£500||£50.00||£90.00 plus VAT = £108.00|
|£501-£1000||£70.00||£110.00 plus VAT = £132.00|
|£1001-£1500||£80.00||£200.00 plus VAT = £240.00|
|£1501-£3000||£115.00||£200.00 plus VAT = £240.00|
|£3,001-£5,000||£205.00||£250.00 plus VAT = £300.00|
|£5001-£10,000||£455.00||£300.00 plus VAT = £360.00|
|£10,001-£25,000||5% of the value of the claim||£450.00 plus VAT = £540.00|
|£25,001-£50,000||5% of the value of the claim||£600.00 plus VAT = £720.00|
|£50,001-£100,000||5% of the value of the claim||£750.00 plus VAT = £900.00|
Anyone wishing to proceed with a claim should note that:
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
- The VAT element of our fee can not be reclaimed from your debtor. You can only claim fixed legal costs as allowable under the Civil Procedure Rules and so you will not recover the fees you pay to us from the other side and there will be a shortfall. We will advise you of the fixed costs which you will recover. You should note that you remain liable for our full fees as your case progresses.
Timescale: It will usually take between 10-15 working days to prepare your Claim Form for approval and signature by you. You should note that it will usually take up to 10 working days for the Court to issue and serve a claim once the Claim is lodged with the Court. Sometimes delays are inevitable in the Court system so this can take longer.