Debt Collection Agencies | Contact for Free Advice

If you are owning an organization and your consumers are not paying their debts, there are Debt Collection Agencies to help out. There are debt recovery lawyers who will help you to recover your money by making the debtor pay. On the other hand, they will try to collect money on your behalf and give it back to you. 

Here, we will provide the necessary details of how you can collect money by following the advice and help with debt collection agencies. You will also understand what to do when customers are not paying your money in time.

What to do when your Customer is not Paying off Debt?

If a certain number of customers are not repaying you, then you can immediately contact them. You can ask him or her the reason for the non-payment of their debts. 

If you don’t receive any response, send a demand letter as soon as possible. Your debtor might be waiting until you are taking help from the lawyer. These incidents are very common in the UK.

If they still don’t respond to your demand letter, contact a debt collection agency and send them a final demand letter. This letter must contain all the details of the claim, payment period (starting from 7 to 21 days), and the terms and conditions if your customer doesn’t pay your money. 

Take Help with Debt Collection Agencies 

As discussed above, sometimes, it might be necessary to contact a debt collection agency that has the bailiffs from the high court. Also, it will be better that you choose an agency that has nearly 35 years of experience in dealing with debt recovery solutions. 

They will help you to collect the money from your debtors. In some cases, the people in the agency as well as the bailiffs, both will be responsible for collecting your money. 

You can take help from the lawyers, as they will put more pressure, compared to the agencies or bailiffs. Moreover, they will also help you during your extrajudicial and normal judicial phase. So, receiving some help with collection agency debt will make you save time as well as money.

How Debt Collection Work?

You can divide the entire process of debt collection into two stages. When you are going through the extrajudicial phase, a certain type of collection takes place without the interference of the court. 

As you start contacting the lawyer, they will be able to help you with both these cases. Now, follow the points below to get help with collection debt in detail. 

Collecting the Extrajudicial Debts

The process of debt collection generally regulates itself with the help of the extrajudicial phase. While this phase is ongoing, the lawyers will try their best to prevent interference from the court. The lawyers will then try to establish contact with your debtors who haven’t paid their money yet. 

They will follow some important points as follows. 

Demands and Telephone calls

The lawyers in the agency will send a demand letter to your debtors or try to contact them via phone calls. Here, the main intention is to tell them to pay your claim as soon as possible. 

Make the Settlement 

The lawyers will utilize all of their knowledge to make a settlement with the debtors. After reaching the final stage of the settlements, they will encourage your customers to pay the amount that is due. 

This encouragement process is very popular in the United Kingdom. They also use this strategy during any kind of legal proceedings. 

Alternative Dispute Resolution (ADR)

This procedure is one of the cheapest, fast and easiest ways to calm down the disputes without the interference of the court. “Mediation” is one of the resolutions that they offer to you and the debtors for a short span of time. 

The resolutions are basically very much encouraged by the court. Sometimes, the court might not even like it when you or the debtors refuse to agree with the resolutions. 

So, if you are considering announcing legal proceedings, this will force your debtor to pay his debts with ease. 

Collecting Judicial Debts

If the debtors don’t pay you the money in the given period of time, the lawyers can consult with you and proceed to commence some legal procedures. Also, they will provide you with the necessary information on all the potential costs. But, they will only proceed after getting permission from you. 

Here are the following points that can help to proceed against your debtor. 

Reminding Debtor to pay the money

Just like the other European countries, there are no such rules by which they can order the debtors to pay the money. In this case, they will perform simple and ordinary procedures to recover it. 

Simple Civil proceedings 

The civil proceedings are mainly divided into three main categories. They are the small claims, multi-track, and winding-up or bankruptcy petitions. The details of the three categories are as follows. 

Small Claims

In this category, the claims are unlikely to be smaller than £10,000. So, the hearings are not as long as the claims of high-values. Sometimes, hearings don’t happen at all. There is also one disadvantage of this proceeding. Such proceedings are usually not charged to the party that lost the case. 

In this category, there is also a subcategory named “Fast track”. These are the types of proceedings that the court generally uses for recovering high values as well as non-complex claims. The value of “Fast Track” is about £25,000. 

These types of proceedings take more time than that of small claims. The court sometimes orders that the smallest part of the proceedings must be paid by the party who has lost the case. 

Multi-Track

In this category, you can see that the claims are much higher than £25,000. Some of the complex cases deal with this procedure and on an average basis. So, it takes longer than usual. 

But, the final hearing generally takes more than one day. The court might impose higher interest on the losing party and order them to pay the amount of the proceedings. 

Winding up or Bankruptcy Petitions

Leaving aside the Netherlands, the petition for bankruptcy is much slower and costly than that in the United Kingdom. The court in the United Kingdom generally considers the petition for bankruptcy as the “last resort” in the debt recovery process. 

So, if you live in England and Wales, then it will take more than one month to execute the process and it will be expensive too. Hence, it will be a better decision to discuss this matter with your solicitor if it is right for you or not.