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Frequently asked questions
Debt collection can seem daunting. We look to answer any concerns you may have and clarify what we do and how we do it to put your mind at rest and understand how we truly stand out from the crowd.
Most common questions about debt collection
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1 | What is a debt collection agency and how does it work?
A debt collection agency is a company that specialises in collecting outstanding invoices on behalf of creditors. The role of a debt collection agency is to proactively obtain the best possible outcome for the creditor, whilst acting compliantly, professionally and ensuring to protect the creditor's good name at all times.A debt collection agency should always observe any compliance-related issues, act within the framework of regulation and take the time to ensure they fully understand each debt matter. This is something we pride ourselves on and uphold the good name of our clients and their reputation at all times.
2 | What steps do you take to collect debts?
Every debt matter is different and as such, we do not fix ourselves into a particular structure and we will take the time to tailor an approach suitable for the needs of the specific creditor. We are not just a letter-sending facility, we understand every creditor has different requirments and those to whom owe a debt will also require various approaches. Contact us to discuss your specific requirements and how we can tailor a process to help recover your invoices.
3 | Can you work with individuals who are based outside of the UK?
Yes, our debt collection agency has experience working with individuals and businesses who are based outside of the UK and we have established processes to collect debts from international debtors.
We have recently collected debt in Portugal, Nigeria, Thailand and Vietnam and our team has experience dealing with debtors across the globe.
Should we be unable to affect recovery via our own internal efforts, we have agents in each continent with specific jurisdictional experience, who can help with tracing, background checks, debt recovery and litigation.
4 | What happens if a debtor is unable to pay the debt owed?
From time to time there will be cases in which all methods, no matter how hard we try, will fail to affect the recovery of a debt. In this instance, we will provide the creditor with the various options available to them and guide them in as much detail as to what that may be. In normal circumstances, if a debtor is simply refusing to deal with the matter, the creditor will essentially need to decide whether to write the debt off or enforce the debt via the County Court or insolvency to resolve the matter.
5 | How long does the debt collection process typically take?
The length of the debt collection process can vary depending on several factors; including the amount of debt owed and the willingness of the debtor to co-operate.
Generally speaking, within the first 30 days, we will know the most likely outcomes and we work quickly to obtain a response from debtors to ascertain the likelihood of recovery, the speed to which the matter will be resolved and if there are any underlying issues to which need resolving, prior to payment being made. It is our company's policy to update clients continuously throughout this process, to ensure you have a clear understanding of case direction.
6 | What is the cost of using your debt collection services?
Our standard commission rate for UK debt recovery service is 15% commission and only chargeable on funds we recover. We are a success based business and this creates an incentive to collect your debt. There are no joining fees and in most cases, no upfront handling charges.
Should you have a debt due to you overseas, a debt balance less than £1,000 or require a trace only service, please call to discuss this with our team and any costs associated with these services.
7 | What type of debts do you accept for collection?
We accept B2B (Business to Business) and B2C (Business to Consumer) debts. We are proud members of the Credit Services Association.
Please note that we do not currently offer debt recovery for debts falling under the consumer credit act 1974. Loans to individuals, credit agreements and finance to consumers fall into this bracket.
8 | What is the minimum amount of debt you will accept?
Our minimum threshold is £1000.00. Anything that falls under this bracket is normally charegable with an upfront handling fee.
Should you have large bulk work all under this threshold, we can provide a tailored quote for you.
9 | How many days outstanding should my invoice be before I instruct you?
Dependant on the terms of your business we would suggest listing within 30 days of the invoice becoming overdue.
We would recommend a final notice to your debtors before instructing us, simply under good practice and please remember that the sooner you instruct us, the more likely it is to recover the debt for you.
10 | Do you accept old invoices?
Under statute of limitations, which forms part of the limitation act 1980, we are able to pursue and enforce unpaid invoices that date back to 6 years.
Should your debtor have made a part payment within that time frame, then the 6 years effectively 'refreshes'.
If you have obtained a judgment within this period and you have been unable to locate your debtor, we may be able to write to the courts to request an extension, should we be able to highlight genuine effort to recover the debt within the 6 years
11 | What if I have received a letter from an Insolvency Practitioner?
In most instances if you have received formal corespondance from an IP we would be unable to assist you.
We would recommend contacting us just to review the matter and understand the full situation, however, in most instances we do not affect our recovery methods on insolvent debtors
12 | Are there any hidden charges or unforseen costs?
Whilst we undertake to be transparent and clear with costs throught the debt recovery process, forecasting costs, should you issue a legal claim that becomes defended, can be quite difficult.
The way we combat and reduce unexpected costs is to apply as much effort from the pre-action phase and constantly monitor case progression should you wish to issue a legal claim.
13 | Can you recover our costs throughout the process?
Should the debt matter fall under B2B debt recovery, we are able to add the costs and interest under late payment legislation and we are very effective at recovering such costs for our clients.
If we are instructed to pursue an individual, your terms of business would need to stipulate that in the event of non-payment, you are legally entitled to third-party costs if an invoice becomes overdue.
Should you be unsure of your position, please call us and we offer consultancy for those looking to improve their internal processes.
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