*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 Court Service 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 earners undertaking the work.

1. Taking your instructions, reviewing any relevant documents and advising you about your claim: 2-3 hours at £235 – £290 per hour: £470 – £870 plus VAT;
2. Carrying out relevant searches, for example at Companies House: 1 – 2 hours at £235 – £290 per hour: £235 – £580 plus VAT;
3. Sending a letter before action: 2 – 3 hours at £235 – £290 per hour: £470 – £870 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 £235 – £290 per hour: £470 – £870 plus VAT;
5. Court issue fee from £25, and up to 5% of the value of the claim. Court fees do not attract VAT: £25 to £5,000;
6. Where no acknowledgment of service or defence is received, applying to the court to enter judgment in default: 1 – 2 hours at £235 – £290 per hour: £235 – £580 plus VAT;
7. On receipt of judgment in default, writing to the other side and demanding payment on your behalf: 1 hour at £235 – £290 per hour: £235 – £290 plus VAT;
8. If payment is not received, providing you with advice on next steps and the likely cost of those steps: 1 – 2 hours at £235 – £290 per hour: £235 – £580 plus VAT;

Total Solicitors’ Fees of £2,350 – £4,640 plus VAT and Court fees of £25 – £5,000

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 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.

The fee earners who work on our debt recovery matters include:

Rachel Brown, a Senior Associate at Druces LLP. Rachel is a solicitor qualified in England & Wales, with over 10 years post qualification experience. Rachel is an experienced commercial litigation and contentious insolvency lawyer. Rachel’s hourly rate is £290 per hour;

Trainees: Where appropriate some of the work required to be carried out on your case may be undertaken by a trainee solicitor, whose charge out rate is £140- £160 per hour, subject to the supervision of a more experienced lawyer.

If you have any questions regarding this cost information please contact Julian Johnstone or Rachel Brown.