Relatively simple cases which do not go to Court are known as "non-contentious". These types of cases usually settle quickly and therefore estimating the costs or setting a ceiling on costs in these types of matters is more easily achievable.
Where we are instructed to collect Commercial debts, (debts between companies), on your behalf, we can do so on the basis of Late payment of Commercial Debts (Interest) Act 1998 & Late Payment of Commercial Debts Regulations 2002.
Provided that the Interest and the Penalties can be recovered from the Debtor, we will collect our fees direct from the debtor based upon the number and value of the invoices collected. You will recover the full amount of the debt plus interest at the rate of 8 % above the Bank of England's Base rate.
Penalties pursuant to the Late Payment of Commercial Debts Regulations 2002 are as follows:-
In the event that you are willing to waive the Penalties and Interest in order to reach quick settlement and/or we are unable to recover the penalties from the debtor, for any reason, our charges will be payable, based on the amount of time spent dealing with that matter or in accordance with any agreement in respect of fixed fees, which can be made in bulk referrals.
If matters become Defended, costs from the point of receiving a Defence together with your instructions to continue to act, will be based on the amount of time spent dealing with the matter. The hourly rate applicable to Defended Commercial debt matters will be £126.00 + VAT per hour.
For bulk referrals, we are able to provide flexible charge structures to suit the individual client's needs and we can offer fixed fees and/or commission based fees on undefended matters. We prefer to keep our charge structures flexible as every client has different needs.
We can also offer consultancy and advice in relation to your internal collection and Credit Control processes which may help to reduce the time and overall costs of collection.
If following Judgment, the debtor still fails to pay the sums due, we are able to take action to enforce those debts through the Court. Any enforcement of Commercial Debts including Statutory Demands and Liquidations will be based on an hourly rate of £126.00 + VAT per hour. The likely Court fees for any enforcement are detailed under Enforcement against Individuals, below.
In respect of collection of debts against individuals, our charges are based upon the amount of time spent dealing with your matter. The charge out rate most likely to be applied is £105.00 + VAT per hour.
These costs are in addition to Court fees and Disbursements that we may have to pay out on your behalf. The likely Court fees on issue of a claim are as follows:-
The costs of enforcement of any Judgment against an individual will be based upon the hourly rate of £105.00 + VAT per hour, unless there is any agreement for fixed fees etc. The likely Court fees for enforcement are as follows.
Please note the Court fees are subject to an annual review.
We are able to offer fixed fees and flexible charge structures to suit individual needs for bulk referrals or multi-matter clients.
For more information on these issues, look at our library of articles, or please contact our Exeter office on 01392 258451.
Crosse + Crosse Solicitors incorp Charles Hope & Co, 14 Southernhay West, Exeter, EX1 1PL Regulated by the Solicitors Regulation Authority - SRA number 45764 Tel: +44 (0)1392 258451 - Fax: +44 (0)1392 278938 - DX: 8313 EXETER - Email: mail@crosse.co.uk