Debt Recovery Solicitors in London

Debt Recovery Solicitors in London

Whether you need assistance with recovering debts from commercial entities or private individuals, our debt recovery solicitors in London have the specialist expertise and experience to represent you with debt recovery advice and representation tailored to your individual circumstances.

No matter where you are based, in the UK or internationally, we can advise you on debt recovery law and your rights, offering support over the phone and via videoconferencing software such as Zoom and Microsoft Teams.

OTS Solicitors offer a dedicated litigation department, advising individuals and clients on services including:

Commerical Debt Recovery

Individual Debt Recovery

Internation Debt Recovery

Outstanding Loan Recovery

How can OTS Solicitors help?

Our specialised department can represent you or your business in the pre-action stages of debt recovery including dispute resolution, negotiation, repayment schedules and settlement offers. We aim to avoid complex and lengthy litigation processes and approach each case with a view to negotiating suitable settlements for our clients.

Fees for Debt Recovery Services

To ensure our clients have a clear understanding of the hourly rates and fixed fees we quote per case, we have set out below the costs of our services with a range of fees to accommodate work that spans both straightforward and complex or highly complex cases involving debt recovery.

Our consultation rate is £200 (+ VAT if applicable) for a 60-minute consultation. This meeting will take place in confidence between yourself and one of our qualified lawyers to establish the full details of your specific circumstances; taking down your full instruction; we will consider all the applicable legislation, policy and any case law that will need to be taken into account in to your case; we will finally have a detailed discussion to advise on your options and merits of success in your case.

A costs-benefit analysis and a full explanation of our duties towards you will be provided, with plenty of time for you to ask any further questions for clarification before the end of the consultation.

It  goes  without  saying  that  every  client  rightly expects  transparency  in  relation  to  costs of their case  and  require  realistic  assessment  of  the  merits/prospects  of  success  when  choosing  their solicitors. We have brought together a team of highly accredited and trusted Legal500 ranked solicitors to do just that, and to ensure every client receives the following:

• Certainty of their legal fees from their trusted legal advisor.
• On fixed fee cases to live without worry of fee-creep and the peace of mind that this fee is guaranteed throughout the life-cycle of their case with us.
• Certainty regarding the merits and prospects of success of their case.
• A guarantee of excellence and the quality of our services.
• Value and efficiency from a team of Legal 500 ranked solicitors carefully selected for their individual client

To ensure our staff as well as clients have a clear understanding of the costs per case, we have set out in  the  proceeding  pages  costs of our services with a range of fees to accommodate work that spans from straight forward to complex cases.

Hourly rate charges

Our charges will be calculated mainly by reference to the time actually spent by the solicitors and other staff in respect of any work which they do on your behalf. Please note all non-qualified staff, paralegal and trainee solicitors are always supervised by experienced solicitors from within each department. A profile of each solicitor and caseworker is provided on our website with details of their qualifications and accreditations and examples of cases they have dealt with.

Our current rates are set out below

• Trainee Solicitors, Paralegal & equivalent £130
• Most of our qualified and experienced Solicitors will charge £200
• Solicitors /legal executives, 4 years + qualified experience £300
• Solicitors over 8 years qualified experience £400
• Senior Consultants £500

These charges are reviewed annually and we will let you know if the rates increase.

All stated fees may be subject to VAT (Value Added Tax) where applicable and is usually charged at a rate of 20%. However, this may not apply for applicants applying from abroad depending on their individual visa/residency status. We will confirm whether VAT is payable when you instruct us and we can work out if VAT is properly chargeable.

Following the initial consultation, the following fees may apply:

Pre-action Process:

On average, costs are between £700 - £1000 depending on the fee-earners hourly rate and complexity of the case. All figures exclude VAT unless specifically stated.

The work will involve (but is not limited to):

· Discussing your circumstances in detail and confirming what the realistic prospects are for recovery and what other options may be available to you;

· Providing you with detailed advice about the law applicable to debt recovery, timescales and whether the case has the required merits to bring a successful conclusion

· Considering the supporting evidence you have provided, including accounting records, correspondence, contracts and agreements and where necessary, helping you obtain further evidence (such as disclosure and bank statements), including taking statements of any relevant witnesses

· Preparing the detailed letter of demand and submitting it on your behalf to the concerned parties, reviewing and advising on responses to demands, negotiating and drafting offers and settlement agreements. We will assess and advise you on your claim at each stage to enable the client to make an informed decision on how to proceed.

· We will provide you with detailed advice and assessment about the outcome of each process and any further steps you need to take including any consequences for either party

Court Action Process:

If a settlement agreement is not reached during the pre-action stages, we can assist you with serving a claim with the court. The debtor will usually have a set amount of time in which to provide the court with a defence or enter an acknowledgement. After the set period has expired, a request can be made to the court for judgment to be entered on the basis that the debtor has not filed an acknowledgement or a defence.

On average, costs will start from an average of £1800 depending on the fee-earners hourly rate and complexity of the case. All figures exclude VAT unless specifically stated.

The work will involve (but is not limited to):

· Taking your instructions and reviewing documentation such as contracts and correspondence etc.

· Sending a letter before action

· Issuing a claim including drafting and submitting the Claim Form and accompanying the background to your claim in the Particulars of Claim

· We will draft the form in addition to the requisite information including (but not limited to) how the debt arose, the amount claimed by you including a copy of any outstanding invoices and further evidence, whether you are claiming any contractual or statutory interest that has accrued upon the unpaid invoice and any legal costs being claimed in addition to the debt and interest.

· Receiving payment and sending onto you

· Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default

· When Judgement in default in received, write to the other side to request payment

· If payment is not received within a reasonable period, providing you with advice on next steps and likely costs

· Matters usually take a minimum of 6-12 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. 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 to resolve.

Important: Your ability to recover your legal costs from the debtor is also affected by the value of your claim, in general if your claim is considered small (under £10,000) you can only recover limited fixed costs from the debtor.

These charges are reviewed annually and we will let you know if the rates increase.

All stated fees may be subject to VAT (Value Added Tax) where applicable and is usually charged at a rate of 20%. However, this may not apply for applicants applying from abroad depending on their individual visa/residency status. We will confirm whether VAT is payable when you instruct us and we can work out if VAT is properly chargeable.

Disbursements (not included in costs set out above):

Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Some examples of disbursements are (but not limited to) the following:

· Where the court has refused or dismissed the claim, advice and assistance in relation to any further work on the matter

· Barrister fees which vary depending on complexity of matter, the seniority of barrister and time spent on matter. On average this may cost between £650 - £3000 excluding VAT however these fees may be significantly higher depending on the level of complexity of the case.

· Any court fees for making the claim. You will pay this to the court directly as part of the debt recovery claim process.

The court fee is based on the amount you’re claiming, plus any interest.

Clients intending to instruct on a claim should note the following:

In relation to legal costs, The VAT of our fee cannot be reclaimed from the debtor.

Interest and compensation may take the debt into a higher banding, with a higher cost.

The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.