Debt Collection advice

[jibcl500]

Hi All

Thinking about using a debt collection company to recover a debt, has anyone done this and is it something that can be done without going through the legal process first.

jib

 

[verytalldave]

No. Debt collection - at least OFFICIAL debt collection - is VERY tightly regulated and has to go through quite a few legal hoops before proceedings can be started. Go to your local library or advice centre for futher information in your area. Requirements vary depending on the criteria of the case in hand.

 

[jberks]

I've only used it once but was very impressed. I'd given up on ever seeing the money so handed it to one of these firms that only charge if they recover anything. 2 months later I got a cheque from them.
It all depends on why the debt arose. Is it that the other party can't pay or simply that there are other people shouting louder than you?
Sadly, it's often the most threatening and loudest that get paid first so being nice rarely works in these situations. As an agency doesn't care about being liked, they can become a thorn in the side of the debtor and often achieve results by hassle alone, simply to get rid of them.
You just need to get to the top of the payment list and a debt collection agency is often the most effective way of doing this.
And Yes, you can just hand it over - no need for courts or solicitors first.

 

[jibcl500]

Thanks for the advice, I was going to go this route to start with but decided to take the court route. Now I might do this istead, my Bro inlaw takes a lot of people to court because of the business hes in and he sometimes has to bankrupt the competion but even though hes owed money he very offten doesnt recover the money through the courts. Might do this today then.

jib

 

[jberks]

I think that once they have a ccj the corts no longer scare them. The courts are slow moving and often toothless, requiring a hearing to make anything happen. It's in the courts interests to drag things out (more business for their friends the solicitors) whereas the more mucking around by the agency, the more it costs them, and the less profit they make.
To paraphrase Gordon Gekko, greed cuts out the crap and gets to the point.

 

[jibcl500]

just had a very interesting chat with a debt company, just by providing a name he came back with information about said person, he revealed info from last year about CCJ info and amounts not paid and even gave me the claim number and web link to look it up for myself.
Amazing what you can find out!!!



brilliant.

jib

 

[Speedmaster]

I hope you not implying that solicitors are kepy in pinstripe suits by courts dragging things out Mr JBerks??

It is such a common problem with debt these days

 

[Topboy]

I think that once they have a ccj the corts no longer scare them. The courts are slow moving and often toothless, requiring a hearing to make anything happen. It's in the courts interests to drag things out (more business for their friends the solicitors) whereas the more mucking around by the agency, the more it costs them, and the less profit they make.
To paraphrase Gordon Gekko, greed cuts out the crap and gets to the point.

Totally agree JB.

I have all but given up taking people / companies to court for my business. Complete waste of time.

You have to realise that generally you are dealing with people who don't give a flying about CCJ's court orders etc.

Nice normal people, (like you and I - I assume!), would not want such things hanging over them, but these buggers really don't care.

Debt collection all the way for me. And even then you only get a result some of the time.

 

[trainer]

Hi,

I used the online courts process to pursue my bank for unfiar charges. Even sent in the bailiffs to their head office in London to recover the money.

I can all be done via http://www.hmcourts-service.gov.uk/

It depends on whether, as the other members say, you feel that the person you want to pursue would actually be bothered. However, as you can send in the bailiffs it may be worth it. After all I am sure you are more concerned about getting the money rather than them getting a CCJ.

 

[jibcl500]

I think in some cases like you say if they already have CCJ's then what’s the harm in another one, trouble is the courts cant make the person pay.

Anyway I’ve signed up with a company to handle any future problems.

I even recently had to deal with a solicitor regarding one case where certain accusations have been made, so not only will they get a bailiffs’ letter but also one from a solicitor, even my wife will try to pursue this person on a separate basis.

Looks like 2008 could be a tough year for someone..opps

I know some chaps locally who do debt collection, nice blocks, not registered mind, but they always come back with goods to the value, the other chap Ive heard about tends to nail the persons foot to the floor then he helps himself. Not legal I assume..



jib

 

[Andy Wr]

I have someone who owes me £2,000 + VAT, very unlikely to get it, I repossessed half of the equipment so it cant be used, this is what a solictor told me while I was enquiring if I could get the debt back.

To issue a statutory demand the debt has to be undisputed. If it is disputed then the County Court procedure must be used. The Court will not allow a Statutory Demand to be used in respect of a disputed debt and the cost consequences are severe if a Court sets aside a Statutory Demand on this basis.

On the basis that the debt is undisputed then a Statutory Demand can be served on the debtor. This should be personally served and can be served personally by yourself or I can arrange for a process server to serve the Demand. The fees for the process server are usually in the region of £50 - £75 plus vat. The debtor then has 21 days to either pay or to make application to the Court to set aside the Demand. If he applies to set aside and is successful then you may be liable for his costs in respect of the same. Therefore, I reiterate that which I have mentioned earlier, in that it is important that the debt is not a disputed debt as this would allow the Demand to be set aside, and may have severe cost consequences.

If the debtor fails to respond then further proceedings can be issued. If the debtor is a company then winding up proceedings can be issued. This carries a Court issue fee of £190 and an Official Receiver Deposit of £670. If the debtor is an individual then bankruptcy proceedings can be issued, which carry a court issue fee of £190 with an Official Receivers Deposit of £400. Again, such proceedings require personal service. If successful, then the above may be reclaimed in the insolvency.

On the basis that a Demand is served, uncontested, and insolvency proceedings then issued I estimate fees in the region of £1,250 - £1,750 plus vat and disbursements. My hourly rate charged by this firm is £156 plus vat. Again, a cost schedule is included with the proceedings however there is no guarantee that the Court will make a costs order against the debtor. Please note that without any paperwork this can only be a rough estimate and is subject to change.

 

[Juddian]

My indy uses debt collectors now, istr it was after an extensive engine repair and they buggered him around for months with excuses (the usual suspects) so quite a lot of money.

It really annoys me when people try and do a small business out of their fair charges, that incidentally does a first class job at far less than MB would charge.

They really are quite good at their job, and ok there'll be charges of some sort probably, but at least the bad debtor gets a severe headache too, that makes all the difference.

 

[kth286]

Is it not possible for the Indies doing jobs that involve high costs to agree with intended client to do a credit search in advance.

Anyone with a CCJ, you would not want to deal with.

 

[Xtractorfan]

Any small garage or business should not release the goods until payment has been made.. and proper payment ..not a cheque..

 

[Juddian]

Any small garage or business should not release the goods until payment has been made.. and proper payment ..not a cheque..

I agree that it's now the case, buy in my indy's case he being a gentleman who's word means something assumes other's to be similarly honourable in their dealings.
Not many like him left and more's the pity.

 

[Number_Cruncher]

>>who's word means something assumes other's to be similarly honourable in their dealings.

That's exactly how my father ran his garage business.

Going out debt collecting with him, in a somewhat old fashioned way in comparison to what is being discussed in this thread!, was a valuable life lesson.

 

[Juddian]

>>who's word means something assumes other's to be similarly honourable in their dealings.

That's exactly how my father ran his garage business.

Going out debt collecting with him, in a somewhat old fashioned way in comparison to what is being discussed in this thread!, was a valuable life lesson.

I bet it was NC, you no doubt met all sorts including those who's word meant very little.

 

[Alex M Grieve]

>>who's word means something assumes other's to be similarly honourable in their dealings.

That's exactly how my father ran his garage business.

Going out debt collecting with him, in a somewhat old fashioned way in comparison to what is being discussed in this thread!, was a valuable life lesson.

I'll bet it was a formative experience for the debtors too!

 

[stickandrudder]

I've spoken on the phone to a few of these debt collection companies, but none of them have ever given me much confidence.
I do have an outstanding debt of £3000 which the courts have been unbale to enforce/recover and would like to find a company that would take this up.
Can anyone personally recommend such a company?

 

[Mr Benjamin]

Have you tried Mr Breakyourlegs