debt collection for business

Skidder · 3 Apr 2012 at 09:14

Can anyone recommend a debt collection service for businesses? I have a client who has owed me money for too long and has somewhat gone to ground. There is a paper trail and I am bored of chasing him. All our work completed and accepted by him and final invoice unpaid now since September.

Anyone have thoughts, recommendations? Have only ever had to chase payments with foreign clients before.

Bundelling in the back of a van is unfortunately not an option in this context.

dirtychinchilla · 3 Apr 2012 at 09:15

We could both go

Skidder · 3 Apr 2012 at 09:16

dirtychinchilla said:
We could both go

You hold him, I'll hit him.

dirtychinchilla · 3 Apr 2012 at 09:17

you're on

iviv · 3 Apr 2012 at 09:38

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073924370

Spenty · 3 Apr 2012 at 09:40

Baseball bat and a rottweiler usually does the job. Cheaper as well.

Skidder · 3 Apr 2012 at 09:49

iviv said:
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073924370

thanks, will read

Skidder · 3 Apr 2012 at 09:50

Spenty said:
Baseball bat and a rottweiler usually does the job. Cheaper as well.

well I've got a cricket bat and two jack russells so that should do

spudbynight · 3 Apr 2012 at 09:50

How big is the debt?

If it is less than £5000 and you have his address you should take action via the small claims court.

You can file a claim online with this :

https://www.moneyclaim.gov.uk/web/mcol/welcome

Skidder · 3 Apr 2012 at 09:54

spudbynight said:
How big is the debt?

If it is less than £5000 and you have his address you should take action via the small claims court.

You can file a claim online with this :

https://www.moneyclaim.gov.uk/web/mcol/welcome

£7k

spudbynight · 3 Apr 2012 at 10:00

Skidder said:
£7k

Do you have a postal address?

IF you do then what you should do is issue a letter before action advising the client they have 14 days to pay the amount outstanding in full before the debt is passed to a debt collection agency.

There are template letters for that sort of thing online if you google.

If they don't respond then engage a debt collection agency. There are lots of them around - again google them. They will charge for their services - normally around 10% of the debt. If they don't succeed they can help you with engaging a solicitor to take the debtor to court. If you win the case the debtor will be liable for the debt and your costs and bailiffs can be instructed.

Skidder · 3 Apr 2012 at 10:07

spudbynight said:
Do you have a postal address?

IF you do then what you should do is issue a letter before action advising the client they have 14 days to pay the amount outstanding in full before the debt is passed to a debt collection agency.

There are template letters for that sort of thing online if you google.

If they don't respond then engage a debt collection agency. There are lots of them around - again google them. They will charge for their services - normally around 10% of the debt. If they don't succeed they can help you with engaging a solicitor to take the debtor to court. If you win the case the debtor will be liable for the debt and your costs and bailiffs can be instructed.

Thanks for that. I do have an address but it is part of serviced office / hot desking building but I guess that shouldn't matter.

spudbynight · 3 Apr 2012 at 10:11

Skidder said:
Thanks for that. I do have an address but it is part of serviced office / hot desking building but I guess that shouldn't matter.

You want an address where the letter will reach him/her.

A large proportion of debtors will pay once you make mention of using a debt collection agency.

Another question - do you know if your client is still trading?

If you have done work for a limited company that is no longer solvent then I would say goodbye to your £7000.

Skidder · 3 Apr 2012 at 10:12

spudbynight said:
You want an address where the letter will reach him/her.

A large proportion of debtors will pay once you make mention of using a debt collection agency.

I think it is a serviced office address which will forward all mail under contract so should be fine

spudbynight · 3 Apr 2012 at 10:15

I have seen stats in the past. I can't remember exactly but something like 80% of debtors will pay up on a letter before action from you. Of those who don't something like 60% will pay up on the first letter from a DCA.

Don't take those figures as exact but they are a rough approximation.

Skidder · 3 Apr 2012 at 10:17

spudbynight said:
I have seen stats in the past. I can't remember exactly but something like 80% of debtors will pay up on a letter before action from you. Of those who don't something like 60% will pay up on the first letter from a DCA.

Don't take those figures as exact but they are a rough approximation.

Thanks

TheBigCheese · 3 Apr 2012 at 10:26

I'm a member of the FSB and their legal eagles recommended STA Graydon...could give them a go if you can't face dealing with it anymore (which is the position I was in).

Nitefly · 3 Apr 2012 at 10:27

Issue a claim form and serve it on him personally. Then he's pretty much buggered... although then you may have problems or have to wait when enforcing the judgement!

spudbynight · 3 Apr 2012 at 10:57

Nitefly said:
Issue a claim form and serve it on him personally. Then he's pretty much buggered... although then you may have problems or have to wait when enforcing the judgement!

OP has said he can't track down the guy in person.

Nitefly · 3 Apr 2012 at 11:02

spudbynight said:
OP has said he can't track down the guy in person.

I didn't interpret anything to that effect.