Debt Collection fees

Debt value	Court fee	Our fee (incl. VAT)	Total
Up to £5,000	Between £35 – £205 (depending value of claim)	£730	Between £765-£935
£5,001 – £10,000	£455.00	£1,000	£1,455
£10,001 – £50,000	5% value of the claim	£1,400	Between £1,900 – £3,900

 

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from your debtor.
• 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.
• Please note that in addition to the above there are various expenses or disbursements which are payable in order to pursue debt claims.  The initial Court fee starts at £25 for very small fees and can be as much as £10,000 for a claim in excess of £100,000.  This is because the Court fee for any sum of £10,000 or more is based on 5% of the amount of the alleged claim.
• If your claim is contested, then there are also fees payable for the trial.
• In more complicated cases we may have to instruct Counsel to represent you whose fees can vary from a few hundred to several thousand pounds to advise you or to represent you in Court.  The fees will vary depending on the complexity and size of the claim.
• If the Debtor does not pay the judgment debt, then there are fee payable in order to enforce the claim. Details of the specific fees are available on the Government Website
• It is impossible to say what an average disbursement might be as it depends on the value of the claim.
• You should be aware therefore that you could in addition to the solicitors costs also have to pay hundreds or thousands of pounds in Court fees if your case were to go all the way to a trial (depending on how large your case is for).     However if we merely issue proceedings and obtain a default judgment for you, then the only disbursement you are likely to have to incur is the Court Issue fee and some modest search fees depending on the searches carried out.  An example would be applying for copies of the title to the house where the Debtor lives which incurs a fee of a few pounds.

 

Our fee for applying for a default judgment includes:

• Taking your instructions and reviewing documentation
• Undertaking appropriate searches
• Sending a letter before action under the Pre-Action Protocol For Debt Claims
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
• When Judgement in default in received, write to the other side to request payment
• If payment is not received within 14 days, providing you with advice on next steps and likely costs

 

Please note:

• The value and complexity of the matter alongside the stage at which the matter is resolved are factors that must be taken into account to confirm the fees in accordance with this scale.
• If your matter is simple or low value we will discuss with you other fee options that may be available to ensure our fees are proportionate to the value of the debt.
• If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.
• We will charge the sum of £25.00 + VAT (a total of £30.00 Inc. VAT) for electronic money transfers.

The value and complexity of the matter alongside the stage at which the matter is resolved are factors that must be taken into account to confirm the fees in accordance with this scale.

If your matter is simple or low value we will discuss with you other fee options that may be available to ensure our fees are proportionate to the value of the debt.

If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.

Should your instructions require us to take your matter out of the fixed fee rate we will charge an hourly rate which is from £200.00 – £228 per hour (£240.00  – £273.60 VAT inclusive) and will depend on the experience and qualification of the case handler as follows: –

 

Our hourly rates

• £272 plus VAT (£326.40 including VAT) for Robert Thornton-Smith- Managing Principal and Senior Solicitor who qualified in 1987.
• £220 plus VAT (£264.00 including VAT) for Sabrina Ahmed- a Solicitor who qualified in 2018.
• £200 plus VAT( £240.00 including VAT) for Lynda Byrom- FCILEX (Legal Executive) who qualified in 1996.

If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.

Our average fees assume that:

• The transaction is concluded in a timely manner and no unforeseen complication arise.
• All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.

 

Disbursements and Other Costs

Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees.

Counsel fees

If Counsel is required to be instructed a quotation for their services will be obtained from them and discussed with you before they are instructed to ensure you are fully aware of the fees that will be charged. However, we have given examples of costs below:

The fees of a barrister vary depending on the experience of the advocate and their expertise. In our experience, the initial fee for a barrister and the first day of the hearing (known as the brief fee) will be in the region of £1,500 – £3,000 plus VAT (£1,800 – £3,600 Inc. VAT). Each subsequent day would be an additional £800 – £1,500 plus VAT (£960 – £1,800 Inc. VAT).

If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges such as travel costs for us to attend meetings and hearings. Courts Fees – current court fees are detailed on the Government website. These are only necessary where we are required to issue a claim form via the court.

 

Additional costs

If there are likely to be additional costs, we will inform you as soon as possible. You may incur additional costs if:

• We need enforcement proceedings
• We need to instruct a Bailiff

 

Time Scales

Matters usually take 3-6 months from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.

Key Milestones

These are the typical steps we’ll take although individual circumstances differ.

• Take your instructions and review documentation
• Carry out appropriate searches
• Before action, issue a letter to request payment from the debtor
• Take payment and forward on to you
• Draft and issue a claim form to the relevant court for an unpaid debt
• Apply to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
• Request payment from the debtor where a Judgment in Default has been issued by the court

 

Factors that could make a case more complex

The following factors may make your case more complex and impact on your legal fees and disbursements: –

• The matter is defended
• Judgement is obtained and needs to be enforced for example
  • Instruction of a Bailiff
  • Attachment to earnings
• Making or defending a costs application

Should any of these factors occur we will notify you and discuss with you any increase in our legal fees or disbursements.

 

Fee Earners and Supervision

All debt work will be carried out by or under the direct supervision of Robert Thornton Smith, a civil litigation solicitor who qualified in 1987. Sabrina Ahmed, a Solicitor who qualified in 2018 and Lynda Byrom, a FCILEX (Legal Executive) who qualified in 1996 may also undertake work on your matter.