Debt Recovery Fees - TML Solicitors - Taj Mughal Solicitors

Debt Recovery - Our Legal Fees

Our Debt Recovery specialist solicitors provide a business/individual debt recovery services that is simple, fast and cost effective.

Our team offers following three levels of services:

A no-win, no -fee services (for undisputed debts)

A fixed fee service (for undisputed debts)

bespoke service charged at hourly rates on a time spent basis, for disputed or more complex matter.

These services typically relate to the value of the debt, though you are free to choose whichever service you prefer.

We have outlined below the costs and fees involved at each level of services

A no-win, no -fee services (for undisputed debts)
All Prices are subject to VAT @ 20%

What does it really mean?

Before you read any further there is one simple consideration: claims under £10,000.00 typically fall within the Small Claims Track of the County Court and therefore costs would not be recoverable in any event.

What is a ‘no win no fee’ arrangement?

This is a Conditional Fee Agreement (“CFA”) is an agreement between you and us that will provide a no cost service to you if we are not successful in recovering your debt.

The purpose of the CFA is to have a separate funding arrangement in place so that instead of paying your Solicitor’s legal fees as you go, these are deferred and only become payable at a later date if you win your claim.

Should you lose your claim you will not need to pay your legal team’s fees. However, there is a still a financial risk in respect of your opponent’s costs and other costs as your case progresses.

Our Debt Recovery Fees

If we offer you a conditional fee based debt recovery service, our fees will be on percentage basis of the amount recovered and charged in accordance to time spent administering the matter.

The quicker we recover your debt the less you pay which means our service can be much better value than our fixed percentage based competitors.

The percentage you pay to us depends on the age and value of the debt and whether it is recovered pre-action, after issuing court proceedings or at the enforcement stage as set out below.

Our Fees

* Minimum fees apply of £350 for Pre-action, £500 for Court Proceedings and £800 for Enforcement.

**We will agree terms for debts over £50,000 or bulk accounts

Points to note:

These costs not include VAT.
These costs apply where your claim is in relation to an unpaid debt which is not disputed.
We will discuss and agree with you before issuing court proceedings or taking enforcement action.
You also pay any agreed expenses such as court fees or enforcement agent’s fees whether or not the debt is recovered. We may ask for payment of such expenses on account.
Court fees are payable as an expense on issuing court proceedings and on enforcement of a Judgment. Court fees are added to the claim and recoverable from the debtor. Court fees are based on the amount claimed including interest and for claims of more than £10,000 the court fee to issue a claim is 5% of the claim value. A full list of court fees can be found here https://www.gov.uk/court-fees-what-they-are.
Where possible we will add late payment interest and compensation to the debt and claim any fixed costs if court proceedings are issued.
Interest and compensation may take the debt into a higher banding, with a higher cost.

Our fee includes:

Taking your instructions and reviewing documentation.
Undertaking appropriate searches.
Sending a letter before action and any further letters/emails and/or telephone calls
Receiving payment and sending onto you, or if the debt is not paid, drafting, issuing and serving a claim.
Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default (a County Court Judgement or CCJ).
When a Judgement in default in received, write to the debtor to request payment.
If payment is not received providing you with advice on the options for enforcement action.
Taking agreed steps to enforce a Judgment against the debtor.

Our fee does not include:

Court fees and any other expenses.
Insolvency proceedings such as issuing a winding-up petition or bankruptcy petition.

If the debtor disputes your claim at any point, it can be handed over to our team of experienced Dispute Resolution lawyers who will provide pragmatic commercial advice and can offer a range of innovative and flexible funding options including fixed fees, conditional (No Win, No Fee) and discounted fee agreements, as well as after-the-event legal expenses insurance and disbursement funding

Matters usually take between 1 to 6 weeks 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 and enforce any Judgment. 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.

Fixed Fee Arrangement

What is a fixed fee agreement?

If we offer you a fixed fee agreement you will be charged a fee regardless of the outcome which fixed in accordance to a scale as detailed within our engagement letter to you.

We provide advice and conduct dispute resolution for a fixed fee based upon the size of the debt.

Fixed Fee Advice includes:

Review of evidence and assessment of prospects of success
Advising you on merits of case
Advice on all the steps necessary to be carried out
An estimate of the likely costs

Fixed Fees

Debts up to £10,000 – fixed fee of £500-£800 plus VAT
Debts of £10,000- £20,000 – fixed fee of £800-£1000 plus VAT
Debts of £20,000+ – fixed fee of £1,500-£2000 plus VAT

Debt recovery through the County or High Court for Businesses

There is a wide range of prices for debt recovery for businesses.

For Initial Advice work – a typical average fee ranges from £500 + VAT to £1000 + VAT for initial advice. If a barrister is required the barrister’s fees will be in addition and range from £750 to £1250 +VAT

Debt Recovery and Litigation Steps in simple or wholly uncontested cases – a typical fee in a simple or uncontested case can range from £1000 +VAT for starting the court recovery process to £7000 plus VAT.

If the case gets to a final contested hearing, barristers fees will be incurred in addition which can start from as little as £750 + VAT per day and cases usually last one to two days for reasonably straight-forward cases.

In addition, Court fees are payable for the issuing of a court claim and range from as little as £35 up to £10,000.

Booking a Court hearing can incur a court fee of between £255 for a short hearing up to £1090 for a trial.

bespoke service charged at hourly rates on a time spent basis, for disputed or more complex matter.

How we calculate our basic charges

These are calculated for each hour engaged on your matter. Routine letters and telephone calls will be charged as units of one tenth of an hour. Other letters and telephone calls will be charged on a time basis. The hourly rates are:

Important Notes:-

The above prices are approximate figure and can vary depending on your needs and complexity of your case. Each case is assessed based on the amount of work to be done and the length it takes to process such case. Therefore, fees payable may differ from the quoted fees to reflect the amount of work to be done.

The above fees does not include VAT and disbursement