Call us today0800 160 1298
 
 

Advantage Litigation

Welcome to Advantage Litigation Services. We provide affordable access to commercial litigation.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login
    Login Login form

Dealing with Debtors – choosing a Debt Collection agency

Posted by on in Uncategorized
  • Font size: Larger Smaller
  • Hits: 613
  • Subscribe to this entry
  • Print

It’s an unfortunate fact of business life that at some point, you may need to take formal legal action to recover monies owed to you or your business. There are two main approaches to collecting such debts; direct legal action through the courts, or appointing an external debt collection agency.

The advantage with using a good debt collection agency is that as well as this being their area of expertise, it also keeps the debt problem at ‘arm’s length’ from your own business and may be the best way forward should you also want to maintain good commercial relationships with the debtor. It is important that you take time to choose your debt collection agency carefully to ensure you receive the appropriate level of service you require to solve your business debt problems.

Our top tips when choosing a debt collection agency are:

1. Are they registered? - make sure the agency you use is FCA registered. The FCA (Financial Conduct Authority) registration should give you additional protections should things not work out, and every debt collection agency must obtain permission from the FCA in order to be legally permitted to collect debt. An agencies FCA registration number should be clearly visible on its website and letterhead, but its always worth double checking this on the FCA’s website to ensure that it is genuine.

2. Get references - ask an agency to provide you with references from former or existing clients. Also find out how long they have been trading and what areas they specialise in. Any agency worth its salt should be happy to provide such information.

3. Don’t pay up front - reputable debt collection agencies will not charge you any upfront costs and will work on a contingent, "no collection-no fee" basis. Be very wary of agencies that require up-front fees unless there are clear and specific reasons why this may be required – there have been many stories where a customer has paid a large up-front fee for no good reason, only to see the debt collection process fail.

4. Read the small print - ask to see the agencies terms and conditions before you instruct them to carry out a collection on your behalf or before signing any contracts. In the terms and conditions, the rates for the services should be clearly stated and there should be no hidden charges.

Contact our Litigation Funding Solicitors UK

At Advantage Litigation we work in partnership with our clients to ensure that we understand and meet their expectations. Our team of highly experienced debt recovery solicitors understand how securing funds that are owed can detract from a business’s success. We are very familiar with the law in this area and will be able to handle every aspect of the process for you. We will also discuss the various finance options available and help you find a way of funding that best reflects your needs. Click here to contact us today or call 0800 160 1298.

Get in touch

  1. Your Name(*)
    Please let us know your name.
  2. Your Email(*)
    Please let us know your email address.
  3. Company Name(*)
    Please write a subject for your message.
  4. Your Phone Number
    Invalid Input
  5. Message(*)
    Please let us know your message.
  6. Anti-Spam, please enter the characters shown
    Anti-Spam, please enter the characters shown
    Invalid Input

Latest News

  • Following the nations formal exit from the EU, a recent move by the Council of European Bars and Law Societies (CCBE) has been widely welcomed by UK-based law firms, barristers and lawyers. With the end of the Brexit transition period now passed, there were widespread concerns amongst the UK’s delegation to the CCBE that they would be demoted to 'associate' or 'observer' status, which would have severely affected its ability to take part. However, in a move welcomed by the Law Society and Bar Council, the CCBE has confirmed that it has created a new a category of 'affiliate' membership specifically for the UK.Originally founded in 1960, the CCBE represents over 1 million lawyers in the law societies and bars of 45 countries from the EU, the European Economic Area, and wider Europe. A CCBE spokeswoman said the 'affiliate' membership status... Read More

  • Japanese tyre and automotive parts manufacturer Bridgestone has threatened to take legal action against a one-man-band flooring company in Herefordshire over use of the ‘Bridgestone’ company name. The multinational corporation, the world’s second largest tyre manufacturer is headquartered in Kyobashi in Japan, and has production facilities in 24 countries. In contrast, tradesman Andy Bridgewater set up ‘Bridgestone Designs’ in his garden shed having been furloughed during the Covid-19 pandemic. Mr Bridgewater says he retrained to become a resin floor installer and invested all of his savings into setting up Bridgestone Designs two months ago. As a result, and despite the different nature and size of the two businesses, the tyre manufacturer has requested that he change the name of his company or face formal legal proceedings. Mr Bridgewater said that the similarity was pure coincidence. When setting up his business, he used... Read More

  •   Unpaid debts are an unwelcome hazard of operating in the commercial world. The reality of working life is that operating in the private sphere exposes a business to the risk that their fees will not be paid, or that the terms of an agreement are not honoured. In other words, the business will become a creditor and must attempt to recover commercial debt. It is common practice that in exchange for the delivery of a particular service or product, there is payment of a fee. This happens in a variety of contexts: the delivery of goods by a private courier; or the provision of specialist services by an individual of a particular profession or trade. Regardless of the facts, when a product or service has been provided there will be requirement for payment to be given in exchange. However when payment... Read More