Debt Recovery
DEBT RECOVERY SERVICES MERTON
In a world where credit has become increasingly available, the amount of debt the average person owes has increased too. We , however, are not here to make value judgements. We are here to help businesses get their money back using a practical and tailored approach to debt recovery.
Debt recovery can be a deceptively simple process. However, it pays to think about the details as this will affect the debtor’s response, the relationship you have with debtors who were, for the most part, good customers, and ultimately whether you get your money back.
Decisions, decisions
There are three main ways to go about recovering a debt:
- By yourself
- Through a debt recovery agency
- Through a solicitor
Where possible, it is advisable to try and recover a debt by yourself at first. It could be the case that the debtor is having cash-flow problems. However, we understand many businesses simply do not have the time to pursue debtors or legal knowledge to put sufficient pressure on the debtor that is still within the realms of the law. This is where we come in.
Advantages of solicitors over debt recovery agencies
Debt recovery agencies are extremely common now and tend to deal with a large volume of work. They generally take a non-tailored ‘pile ‘em high, sell ‘em cheap’ approach. Whilst cheap, this approach has draw-backs.
Consider a a few things. What if the debtor is a particularly good customer? Sending generic demands of a threatening nature will not help you maintain that relationship. This generic approach also often results in the debtor ignoring any communications received as people have generally become accustomed to the way the agency way of doing things.
The tailored way
Our specialist debt recovery solicitors strive to take a tailored, consultative approach that takes into account the wishes of the creditor. Together, we can consider the best way of communicating with the debtor, their likely reactions and the full range of legal options available to you, including statutory demands and litigation. Litigation, however, may not prove to be necessary. Tailored communications from a solicitor do, in our experience, make the debtor sit up and take note.
Statutory demands
Statutory demands are legal requests for a debtor to pay back a debt. They are often used by debt recovery agencies for debts of all sizes. However, they are risky. If the debt is not larger than £750, bankruptcy proceedings cannot be started meaning a statutory demand stating the debtor is liable to face bankruptcy is spineless and this type of usage is frowned upon by the courts. When backed up with a firm intention to take action, in the hands of a solicitor statutory demands can be useful.