Debt collection – how to make it easier
It is a common tale from business that they have tried all courses of action to recover debts, the credit controller is pulling their hair out and going through the courts is a waste of time and money. I have recently met up with an agency that is dispelling this myth. Once you have obtained Judgement, and if your debt is over £600 they will collect it for you, and in 2008 they collected 96p in every £1 of enforceable debts. The steps are as follows, and for the latter part of the article credit goes to guest blogger The Sheriffs Office:
- Small claims can be made on line using HM Court Service website, moneyclaim.gov.uk. There is useful guidance on the HMCS website.
- There is an excellent flowchart on p11 of the HMCS Guide for debt recovery for Small Businesses
- Once Judgement has been registered by the court the customer is obliged to pay you, however this is where so many businesses stall and where The Sheriffs Office can come in useful, the following is the process as shown on their website:
If you have a County Court Judgment or Order over £600 (including court costs) or a High Court Judgment or Order up to 6 years old then you have come to the right place. For a court fee of just £50, we will ‘transfer-up’ your judgment to the High Court for Enforcement free of charge.
Our Nationwide team of experienced High Court Enforcement Officers offer the highest collection rates in the country which are monitored by the Ministry of Justice. In 2008 we averaged 96p in £1 on enforceable debts.
Unlike others, we do not send letters warning of our intended visit. A warning often prompts the defendant to abscond or hide/sell any assets they may have.
Our first point of contact is a prompt visit by our High Court Enforcement Officers to the defendant’s premises to seize goods, chattels and other property. These can be removed and sold at auction if the defendant fails to pay the sums due. Our extensive powers include the ability to force entry to commercial premises (including shops, warehouses and barns) for the purposes of this seizure.
We are to collect the judgment amount, your court costs, your ‘transfer-up’ fee, interest at 8% and our fees, costs and charges from the defendant. We do not take a percentage of the money that you’re owed as many debt collectors do.
Unlike many of our competitors, all of our High Court Enforcement Officers carry portable Credit/Debit Card Machines allowing easy secure Chip and PIN payment by the defendant. At present, this accounts for 70% all of all payments collected.
We will keep you updated at every stage of the enforcement process, requesting your further instructions if necessary.
Thanks go to the Sheriffs Office for allowing us to use this information, and we hope that this will help you to collect outstanding debts but accept no responsibility if the action is unsuccessful. Alastair Wood, AW Accounting – Accountants who “speak your language”
