Fees – Debt Recovery
Debt Recovery
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.
The exact costs will depend on the individual circumstances of any matter. It is important that we are able to provide you with as much guidance and certainty as to the likely costs involved in your matter. So that we can give you certainty about pricing we ask you to provide us with as much information as possible at the beginning of the matter.
The fee earners at Lex Sterling have varying levels of experience and knowledge which can be applied to best match the needs of your matter. Each fee earner will charge at a different hourly rate and the range of these rates start from £150 plus VAT (£180) up to £200 plus VAT (£240) depending on the level of experience. The fee earner working on your case will charge at their hourly rate and record their time for undertaking the work involved. We base our charges on the time spent. For maximum transparency, we divide an hour into ten blocks of six minutes to record the time spent on your case. This breakdown is what you will see in our time records and on all the invoices we send you where the matter is quoted based on a time estimate rather than a fixed fee.
In some circumstances we are able to offer a fixed fee for the work which we carry out for you.This work includes the following:
| Debt value | Court fee | Our fee plus VAT |
|---|---|---|
| Up to £5,000 | Up to £205 | £1,800 plus VAT of 20% (£360) |
| £5,001 – £10,000 | £455 | £2,200 plus VAT of 20% (£440) |
| £10,001 – £200,000 | 5% value of the claim | £10,000.00 |
| More than £200,000 | 5% value of the claim | £3,400 and up plus VAT of 20% (£5000.00 and up plus VAT of 20%) |
Anyone wishing to proceed with a claim should note that
- The VAT element of our fee cannot be reclaimed from your 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.
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default is received, writing to the other side to request payment
- If payment is not received within 28 days, providing you with advice on next steps and likely costs
Matters usually take 4-6 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 if this is defended it can take in excess of 42 weeks. 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.