*Costs information for Debt Recovery claims up to £100,000

Costs Information for Debt Recovery up to £100,000

The Solicitors Regulation Authority’s Transparency Rules require us to provide detailed information on our website of the costs of some of our services. For businesses, the services which we provide, and which are covered by the rules include debt recovery up to a value of £100,000.

The information we provide is either the average cost or a range of costs of our fees, based on our hourly rates for our lawyers or other bases of charging, and any likely disbursements. Disbursements are costs that we incur with third parties such as HM Courts and Tribunal Services on your behalf and which we re-charge to you in our bill.

In addition, we provide information about the solicitors who will manage your matter, their qualifications and experience.

The information provided is based on our experience of the costs we charge for typical transactions or cases. Our actual charges may vary depending on the complexity of your matter and in cases where complications arise. We will always give you an individual cost estimate at the outset of your matter, taking into account the actual circumstances of your case. We will also update our estimate if any complications arise which may impact on our costs.

The cost of debt recovery services for cases with a value up to £100,000

Our fees and the disbursements we will charge to you for a typical debt recovery claim cover the work and involve the costs set out below. In some cases, for example where the debtor pays immediately in response to a letter before action, the costs may be less. In some cases, where the basis of your claim is complex, the costs may be more, and we may need to instruct Counsel to advise and/or draft particulars of claim. In such cases you would have to pay Counsel’s fees in addition to our fees.

Our fees and disbursements for this work are based on the number of hours we take to complete the work multiplied by the hourly rates for the fee earner undertaking the work.

1. Taking your instructions, reviewing any relevant documents and advising you about your claim: 2-3 hours at £210 per hour: £420 – £630 plus VAT;
2. Carrying out relevant searches, for example at Companies House: 1 – 2 hours at £210 per hour: £210 – £420 plus VAT;
3. Drafting and sending a letter before action: 2 – 3 hours at £210 per hour: £420 – £630 plus VAT
4. Receiving payment and transferring it to you; or if the claim is not paid, drafting and issuing a claim form and particulars of claim: 2 – 3 hours at £210 per hour: £420 – £630 plus VAT;
5. The Court issue fees for debt claims up to £10,000 range from £35 to £455. If the value of a claim exceeds £10,000 but is not more that £100,000, then the Court fee will be 5% of the value of the claim. So if a debt claim is worth exactly £100,000, then the court fee will be £5,000. Under the Court’s Help with Fees scheme, the Court fee may be waived in certain circumstances.
6. Where no acknowledgment of service or defence is received, or where the debtor fully admits the debt, applying to the court to enter judgment : 1 – 2 hours at £210 per hour: £210 – £420 plus VAT;
7. On receipt of judgment in default or following a full admission, writing to the other side and demanding payment on your behalf: 1 hour at £210 per hour
8. If payment is not received, providing you with advice on next steps and the likely cost of those steps: 1 – 2 hours at £210 per hour: £210 – £420 plus VAT;

Total Solicitors’ Fees of £2,100 – £3,360 plus VAT

Range of applicable Court fees for debt claims worth up to £100,000 for the period after May 2021: Court fees of £35 to £5,000 will be payable unless you are exempt under the Court’s Help with Fees scheme.

Debt recovery claims involving default judgments normally take between 6-12 weeks to conclude, depending on whether it is necessary to issue a claim and file an application for default judgment.

Note however that the time taken by different courts to issue claims and process applications for default judgment can vary and this can impact on the overall time it takes for your case to complete.

This cost information does not cover situations where:

• the debtor disputes your claim and we enter into correspondence with the debtor regarding the dispute on your behalf and/or some form of alternative dispute mechanism is adopted, such as mediation; or
• the debtor partly admits the claim;
• the debtor files a defence to your claim; or
• The debtor applies to the court to set aside any default judgment obtained; or
• The debtor is based abroad and service of the claim out of the jurisdiction is required; or
• The debtor does not satisfy any judgment obtained on your behalf and enforcement or insolvency action is required.

In these situations, we will advise you as to the cost implications bearing in mind the nature of the issues that have arisen.

Who to contact

Sadie Cunningham – Solicitor

s.cunningham@druces.com or +44 (0)20 7216 5526

Sadie qualified as a solicitor in September 2020 and has experience with handling debt recovery matters both at the pre-action stage and in the County Court on the Small Track (claims worth up to £10,000), Fast-Track (claims worth between £10,000 to £25,000) and Multi-Track (claims worth over £25,000).

The costs information provided on this page is based on Sadie’s hourly rate of £210 plus VAT.

Neil Hayter – Partner

n.hayter@druces.com or +44 (0)20 7216 5553

Neil is a Partner in Druces’ Commercial Litigation team with over 25 years’ experience in general commercial litigation and all areas of dispute resolution including debt recovery, bankruptcy and insolvency matters.

For more complicated debt matters, Neil may supervise Sadie’s work in those cases. Neil’s hourly rate of £350 plus VAT may need to be factored into the calculation of fees. Such information will be made known to you at the outset of the matter.

Trainee Solicitors: Where appropriate, some of the work required to be carried out on your case may be undertaken by a trainee solicitor subject to the supervision of a more experienced lawyer. The hourly rate for trainee solicitors is £145-£165 per hour plus VAT.