What work does this pricing information relate to?
Below you will find pricing information in relation to debt recovery Court claims.
Why do we provide this information?
We are required by the Solicitors Regulation Authority (SRA) to provide pricing information to potential clients in relation to certain types of work. We encourage our clients to contact us for more detailed information based on their specific situation and needs and not to base any decision solely on price. We strongly believe in the notion that 'you get what you pay for' and strive to provide our clients with clear, practical and effective legal advice, a responsive and highly personal service and, crucially, value for money.
How do we charge?
The following costs apply where your claim is in relation to a simple unpaid invoice which is not disputed and when enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs.
We charge for our work an hourly rate basis. The range of hourly rates in our Dispute Resolution team is between £125 + VAT * and £295 + VAT *.
In a straightforward, uncontested debt recovery claim, the cost to issue a Letter before Action is usually capped at £120 + VAT *. This is based on sending a letter to a business debtor and on the information contained on the invoice which you provide. Any additional requirements to consider documentation or otherwise will be charged at a rate agreed with you within the range set out above.
If Court proceedings become necessary, our fees for preparing the papers necessary to issue Court claims are charged at a rate agreed with you, calculated using the above range and subject to fee milestones agreed with you.
Courts fees payable to the Court to issue proceedings are based on a sliding scale, dependent upon the band into which the amount claimed you are claiming falls. By way of example, as at July 2018, fees to issue in the Court are charged at 5% of the value of the claim or if issued in the Money Claims on Line Court at 4.5% of the claim, if the claim exceeds £10,000.
Anyone wishing to proceed with a claim should note that:
The VAT element of our fee cannot be reclaimed from your debtor even if you are successful in recovering some or all of your legal costs.
Interest and compensation may take the debt into a higher banding, with a higher cost.
The costs above are not for matters where any enforcement action, such as the bailiff, is needed to collect your debt.
For small claims up to £10,000, clients are only entitled to recover fixed costs.
Our fees as detailed above include:
Taking your instructions and reviewing documentation;
Undertaking appropriate searches;
Sending a letter before action;
Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing the claim papers;
Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default;
When Judgement in default in received, writing to the other side to request payment;
If payment is not received within an agreed period, providing you with advice on next steps and likely costs.
How long will my matter take?
Timescales to achieve resolution depend significantly upon the approach adopted by the debtor however, by way of a guide; a Letter before Action will usually demand payment within 14 days. Once Court proceedings are served a debtor will normally have 14 days within which to acknowledge the claim and indicate whether it intends to defend the claim and, if so, it then has a further 14 days in the first instance to file any defence to the Court proceedings.
Who will be advising you?
Straightforward, uncontested debt recovery claims are usually handled by a junior member of our Dispute Resolution team under the supervision of a partner or senior member of the team. You can find out more about the members of our team below.
- Philip D'Arcy
- David Murray
- Pippa Garrod
- Frances Kyle
- Asma Muneer
- A trainee solicitor completing a "seat" in our team
Who to contact for further information or legal advice?
Please contact us for more detailed and specific information.
* VAT is charged at 20%.