(Frequently Asked Questions)
What is your success rate?
you actually do?
What if the
company is in Receivership/Liquidation, can you help?
provide Legal Advice?
When do I
have to pay?
Very good. Whilst
each individual debt is different most debts are resolved with our initial
approaches by letter and phone. We will usually ensure you will be paid,
normally within a few days unless:
The debt is
absconds or goes into Receivership/Liquidation/Administration
actually has no money.
identity cannot be established
The debt is very
In our experience it
pays to take action as soon as possible, otherwise you may find that you were
too late. If a debtor has only £2000 to pay £20,000 worth of bills, they will
usually pay the people that employ the Debt Collectors first.
Don't wait until the
money runs out. Very often the reason you have not been paid is because your
debtor has cash flow problems and will not admit to it. They may also be waiting
to see what steps you are going to take. Once you employ our services they
should realise that it is in their own interest to resolve the matter and also
that you are serious about recovering your money.
Overseas debts do not have as high a success rate and depends largely on the
Our debt recovery
action depends on the debtor but we usually approach your debt by phone and by
post. If the debt cannot be resolved or the debtor does not respond the next
step is legal action.
If I decide not
to take the case further at this stage can you help?
Yes. We have our own solicitors that can take further action, including
enforcement if you wish.
Who decides if
the debt is to proceed to Litigation?
We both do. If we fail to resolve the debt with our initial approaches we will
normally proceed to Litigation if we think it is likely to produce a positive
result. However we are not obliged to do so and may decline to take the matter
further if we think we can no longer be of any further help. You may decide to
"Write it off", or transfer the case to the high court, or use your own
If the Debt is
disputed can you help?
Yes, we can often negotiate a settlement on your behalf, you will be informed of
any offer of settlement and you can then decide to accept or reject any offer.
Nobody can make a
debtor pay if they really are in Liquidation etc.
However we can check to make sure that they really are in liquidation or
receivership. We will check to make sure it is above board etc, and that you are
informed of meetings and who the other creditors are. Some company's send out
notices that they are going into receivership but don't actually cease trading.
It pays to check.
No. Only a solicitor
is allowed to give legal advice. We are debt collectors and not solicitors.
Debts are usually straight forward but if they are more complicated we will
normally tell you when you should seek professional advice.
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You will be
1 When the debt has
been resolved by acceptance of money or otherwise or
2 Where the debt is settled in any way whatsoever to us or directly with you or
3 Where Judgment has been awarded or where a credit note is raised or
4 In the case
where judgment has already been obtained, when a charge is secured any asset or
when an attachment of earnings order has been obtained.
5 Where you request that action is halted or suspended without reasonable
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If there is a trial or hearing will I need to attend Court?
If the case is contested you will have to attend or send somebody that dealt
with the case to explain the nature of the debt to the court.
Can somebody from your company appear as a witness?
Subject to location and availability it is possible for somebody to attend court
by arrangement. Note: There will be a charge for this and overnight expenses
will apply for travel of more than 60 miles from base.
Can you provide me with copies of correspondence?
Copies of correspondence received from your debtor will be faxed or posted to
you when they are received. An administrational charge will be made for further
copies or a written progress report.
What are the chances of the debtor paying if a judgment is awarded?
In our experience actually getting paid depends on a number of things. If they
have the money or assets to cover all the costs then the chances of getting paid
are good. Unfortunately obtaining a Judgment and actually getting paid are often
two different things. Many debtors pay up as soon as judgment is awarded. Others
pay in instalments and more pay after enforcement. Remember that some debtors
don't actually have the money. Individuals on low pay or company's with no
assets may offer little chance of success, that is why we recommend a Basic
Search & a Property Ownership Report before commencing legal action.
How long will court action take?
County Courts vary and some are faster than others. It usually take about 7 days
after the Claim is processed for the defendant to receive it. If they don't pay
immediately they have about 28 days to reply otherwise judgment can be requested
by default. If they do contest the case it can take at least a month or two for
a trial date and judges directions and other things can drag proceedings into
months. Enforcement can produce quick results but can also last up to a year.
Can I use Credit Reference Reports or Companies House reports in court?
All information supplied by UK Debt Collection in respect of any credit
reference, enquiry, company reports etc, is supplied in the strictest confidence
and cannot be used in evidence or divulged to any third party. Copies of
correspondence received by UK Debt Collection and our progress reports can be
used in evidence.
Can I claim the court fees, issue fee etc?
The answer is usually Yes, The court fees and interest are added onto your claim
and are usually added to the Judgment if you win your case.
Can I claim any other costs?
Depending on the amount of claim you can usually claim travelling expenses and
witness costs fixed by the court. You can ask for any reasonable expense
incurred and the judge will decide if it is relevant and should be awarded
although it is rare to recover all your costs.
Can I claim the fees charged by Ability UK Debt Collection?
No. Unless you have a signed contract with your debtor where they agree in
advance that if you employ a debt collection company they will pay our fees it
is not possible to add our fees onto yours.
What information do you need to start recovery action?
The Name, Address, Amount Outstanding & Telephone number of your debtor.
If any of the above is not known you should run a Basic Search before Action is
started. Where you do not know of any assets owned by the debtor it may also be
wise to run a Property Ownership Search.
If you have to send documents only COPIES of any correspondence showing names,
addresses, letterheads, business cards, compliments slips, bounced cheques etc
should be sent. Anything that can lead to establishing the "Exact" identity.
Why do you charge VAT if I am from overseas?
VAT is charged on a service which is "Not Exported". The service is performed in
the UK therefore tax applies. Please contact HM Customs & Excise if you need