This page provides a useful overview of each of the stages and the cost implications so you can decide what is the best course of action for you.
A formal letter before action (“LBA”) is sent to the debtor threatening legal proceedings if the debtor fails to make payment within the number of days permitted (usually 14 days). For a fixed fee of £50.00 plus VAT, we will send a letter before action to the individual or organisation that owes you money. Providing we receive your instructions before 4.00pm, Monday-Friday we will process your letter before action that same day. Interest is claimed under the ‘Late Payment of Commercial Debts (Interest) Act’ for each qualifying debt (currently 8% above the Bank of England base rate) and compensation is claimed at the following rates:
Qualifying Debt |
Value Compensation |
| Up to £999.99 | £40.00 |
| From £1,000 to £9,999.99 | £70.00 |
| Over £10,000 | £100.00 |
If, after receiving the LBA, you would like us to liaise with the debtor and negotiate payment terms, before you commit to issuing court proceedings, we will undertake this work at our standard hourly rate of £120+VAT for letters in/out, telephone calls, e-mails etc. between ourselves/yourselves, the debtor and any other party.
If the debtor does not respond to the LBA or you are not able to negotiate your payment terms and you wish to commence court proceedings, we will charge you the fixed court fees and fixed solicitors costs (which are determined by the value of the claim) referred to below.
|
Debt (Inc Interest & LCP) |
Court Fee |
Online Court Fee |
Fixed Costs |
|
Up to £300 |
£35.00 |
£25.00 |
£50.00 |
|
£301- £500 |
£50.00 |
£35.00 |
£50.00 |
|
£501- £1,000 |
£70.00 |
£60.00 |
£70.00 |
|
£1,001- £1,500 |
£80.00 |
£70.00 |
£80.00 |
|
£1,501- £3,000 |
£115.00 |
£105.00 |
£80.00 |
|
£3,001- £5,000 |
£205.00 |
£185.00 |
£80.00 |
|
£5,001- £10,000 |
£455.00 |
£410.00 |
£100.00 |
|
£10,001- £200,000 |
5% of the value of the claim |
4.5% of the value of the claim, up to £99,999 |
£100.00 |
|
Over £200,000 |
£10,000 |
|
£100.00 |
When a Claim is deemed served by the court the debtor has 14 days to respond/defend. At this stage we charge an hourly rate of £120 for letters in/out, telephone calls emails etc. between ourselves/yourselves, the debtor, the court and any other party. This correspondence may often include trying to negotiate settlement terms either before or after a defence is filed.
If a defence is filed, we may decide with your instruction, to refer the claim to one of our solicitors in our dispute resolution team. This will be determined on a case-by-case basis and the solicitor acting on your behalf will discuss costs and risk when instructed.
If the Defendant fails to file an acknowledgement of service or defence, we can then enter judgment for which you will be charged the fixed costs referred to in the table below.
|
Amount Of Judgment |
Fixed Costs |
|
£25- £5,000 |
£22.00 |
|
Over £5,001 |
£30.00 |
If the debtor fails to pay the judgment debt you may then proceed to enforcement. There are various methods of enforcement, the costs, advantages and disadvantages of which we can discuss with you on a case-by-case basis.
This can take approximately three weeks. The High Court Enforcement apply for Writ of Control and write to debtor giving seven days notice to make payment, failing which an officer will make an attendance. Below are the fixed court fees and costs you will incur:
|
Amount Of Judgment |
Fixed Costs |
|
£25- £5,000 |
£22.00 |
|
Over £5,001 |
£30.00 |
If you have any further questions please contact Will Angas or Gina Hope to discuss your requirements.
Contact PDT
PDT Solicitors
Premier House, 36-48 Queen Street, Horsham, West Sussex RH13 5AD
Tel: 01403 262 333
Fax: 01403 262 444
Email: law@pdt.co.uk
DX: 57617 Horsham
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