What is the difference between a debt collection service and a debt collection company?
It is frequently believed it is the same for debt collection Leeds as debt recuperation. collection are the same thing. They sound similar don’t they? They are similar to each other. English Oxford Dictionary defines ‘recovery’ and ‘collection’ as:
Recovery = Retrieval and Possession getting back, Redemption.
Collection/Collect = Group for Assemblement for Fetch and Accumulate.
Similar, but not the same.
A significant portion of debt collection issues are dealt with by solicitors following debt collection has been attempted unsuccessfully , but the debt remains due.
Companies that collect debt offer a cheap and fast online service online.
According to our experience, debt collection agencies usually generate standard 7 day payment demand letters that provide basic details about the amount owed. But, as the old adage is, “you get what you pay for”. If there is no response or no payment be received to a payment demand letter it will not be sufficient if you needed to progress the matter to court proceedings since it wouldn’t meet the Court’s pre-action requirements.
Would a debt collection company be able issue your claim, or even serve a Statutory Demand of the back of this seven day demand? Yes possibly however, there could be important consequences to doing this. First of all, a reasonable period (in the view of the Court) for the debtor’s answer is 14 days (longer in more complex cases). There are certain details that should be provided in the Letter before Action or Letter of Claim that the 7 day demand letters often fail to contain. This can lead to consequences like the Court issuing costs sanctions or the case could be suspended in the Court (halted for a set time) while the reasons for not adhering to the proper protocols are investigated.
An important factor to consider is whether a debt collection agency will engage in negotiations and contact the debtor in case a debt becomes contested, and assist with moving your problem to a resolution that is satisfactory. From my experience, the debt collection companies do not typically handle disputes.
This is not to say that a letter to collect debt could not be effective, but it might work when the situation is simple, in that payment is received in return and the case is concluded. However, in the case that there is no response or payment or if the debt is contestable, the collection process has run its course and may result in additional expenses which are incurred prior the instruction of Solicitors as well as the formal process of debt recovery.
Debt Recovery
When the debt is due during the course of business, or between individuals the process of recovering debt is commenced in line with goals set out in the Practice Direction for Pre-Action Procedures and Conduct. If a debt is owed to a business from an individual or sole trader, the recovery process also has to comply with the 2017 Pre-Action protocol for Debt Claims , which was recently approved through the Ministry of Justice. If a case needs to proceed towards Court action It is vital that compliance with these procedures is clearly demonstrated. If they’re not met, then sanctions could be issued, particularly so the cost of litigation. These protocols guarantee that parties exchange sufficient amounts of information from the beginning and indicate a willingness settle any issues without the need for court procedures.
We understand that every case is entirely bespoke – it is very rare that the reasons concerning the non-payments of invoices and/or the accumulation of debts are identical. In the event of a need, we could advise you to request us to conduct pre-action tests on the credit worthiness for the person who is in debt.
We pride ourselves on providing efficient, comprehensive and, most importantly, fully legal debt recovery services that are customized to your specific circumstances and needs to ensure the fastest, most cost-effective and satisfactory result.
We are also able to provide advice as to the likelihood of pursuing debt recovery if you need to proceed with Court action and take steps to enforce any Judgments that are obtained and provide advice on the best method of enforcement for the particular circumstances.
