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What is your success rate?
Our success rate is excellent. Each individual debt is different and most debts are resolved with our initial approaches by letter and phone. Unless the following apply we will normally ensure you will be paid within a few days:
• The debt is disputed
• The debtor absconds or goes into Receivership/Liquidation/Administration
• The debtor actually has no money
• The correct identity cannot be established
In our experience it pays to take action as soon as possible, otherwise you may find that you are too late. If a debtor only has £2000 to pay £20,000 worth of bills, they will usually pay the people who employ the Debt Collectors first. Don't wait until the money runs out. Very often the reason you have not been paid is because your debtor has cash flow problems and will not admit to it. They may also be waiting to see what steps you are going to take. Once you employ our services they will realise that it is in their own interest to resolve the matter and also that you are serious about recovering your money.
What do you actually do?
Upon receiving your instruction your debtor’s details are entered onto our in-house system (Persistence V3). This will generate a letter to your debtor advising them that you have appointed our services and that we are enforcing your right to charge both interest and compensation under the Late Payment of Commercial Debts Act (1998). The letter advises your debtor that the outstanding debt needs to be addressed immediately and requires the debtor to send funds to discharge the debt or to contact one of our collectors to discuss the situation.
This is then followed up by an automated scheduled call 3 – 4 days after our the letter is sent when one of our collection team will contact the debtor by telephone to discuss the outstanding debt with the aim of prompt settlement. Where we go from here depends on the individual case but you can be assured that we will work on your account with a proactive approach. Our initial aim is to achieve settlement of your debt.
While we are doing this we are also trying to both evaluate and strengthen your case so that should legal action have to be contemplated we can advise you on the likelihood of recovering your money should you get a judgment against your debtor. Our aim is always to prevent our clients throwing good money after bad. We will communicate with your debtor using whichever means are appropriate including letter, phone, fax, sms and e-mail.
What information do you need to enable us to proceed?
We try to keep the information required to a minimum. All you need to provide us with to proceed is a copy of your invoice(s); if this exceeds 5 then a statement summarising the outstanding amount and the relevant contact details can be faxed, emailed or posted. Please note that sending an instruction using this method will be deemed as acceptance of our terms and conditions.
Are you really No Win No Fee?
If your debtor is based in the UK then we are strictly no win no fee. In the event that with the information you have provided we are unable to recover your debt then we do not charge. There are no set up costs. Costs will be charged should legal action be required or should we need to trace your debtor but this is only because we incur costs ourselves. Please be assured that we will always request your authorisation before any fee generating work is carried out. Additionally we will justify why we think the fee work will enable us to successfully recover your outstanding debt. Please see term 6.7 of our terms and conditions for further information.
What is the Late Payment of Commercial Debts Act?
This Act was introduced in two stages in 1998 and 2000 and allows us to charge your debtor compensation (which is dependant on the value of your debt as shown in the below table) and interest at 8% above base. This assists the collection process as the outstanding debt is constantly increasing and therefore requires immediate attention to prevent further costs being incurred. This also allows our clients to off set part of our fee to your debtor.
The compensation scale rates:
Unpaid Debt Amount Allowed
Less than £1000 £40.00
£1000 - £9999.99 £70.00
£10,000+ £100.00
How long does your collection process normally take?
Our collection process normally takes between 21 – 28 days although this is dependent on your debtor’s ability to discharge the outstanding debt.
If legal action is required can you continue with the case?
Yes. We will produce a pack for our solicitors that will enable them to quickly start the judicial process. We have arrangements with two firms of solicitors and have secured favorable rates for our clients due to our bulk requirements. We will offer you our reasons as to why we think that legal action should be taken and likewise will give you our reasons when we do not think that legal action will result in payment.
The system with our solicitors puts you directly in contact with them as we have found that this is the quickest way to enable us to meet the time deadlines set by the court. We will always be here should you have any questions and are constantly kept abreast of all the activity by the solicitors. Please also note that our commission fee will be charged once you are in funds of any successful legal action.
Why do I just not go direct to a firm of solicitors?
Solicitors earn an hourly rate and the amount of fees per case is not easy to quantify from the start, therefore it may not be the most cost effective option. Also very few Firms will offer a proactive service. Most send a letter to your debtor advising that they will issue proceedings unless a response is received from your debtor in 7 days and when there is no response they issue proceedings. There is no evaluation of your debtor’s ability to pay, no proactive collection process, no review that your sales person has your debtor’s correct trading name or trading style. Just ‘let’s issue proceedings and this is our hourly rate’.
With our collection process you know the cost if you’re unsuccessful and that’s nothing. We are also quicker that the judicial system which, if everything goes smoothly, will take in excess of 2 months without a hearing and 4 if the debtor attempts to defend your action. Finally, after you go through the whole judicial process, it may be that your debtor still does not pay – over 75% of judgments remain unsatisfied in the UK.
If the Debt is disputed can you help?
Yes. If you have a disputed debt we will request that your debtor forwards the relevant information that we then forward to you by e-mail. This enables us to communicate your debtor’s comments in their own words. Should the dispute require negotiation then we are extremely experienced in agreeing an amicable settlement on our client’s behalf. Any offers of settlement that we receive are always requested in writing. In doing so, your debtor accepts the debt, which may be useful should settlement require legal action.
What if the company is in Receivership/Liquidation, can you help?
Nobody can make a debtor pay if they are in Liquidation or receivership. However we can check to make sure that this is the case. We will check to make sure it is legitimate and that you are informed of meetings and who the other creditors are. Some company's send out notices that they are going into receivership but don't actually cease trading: it pays to check. We will also provide you with the administrator / liquidators contact details.
There are so many collection companies to choose from, why should we choose Financial Recoveries Ltd?
Financial Recoveries was created by two ICM Qualified credit managers who were disgruntled with the quality of service offered by collection agencies. We knew that our experience of credit management would enable us to provide a better service. Our collection team provides a seamless service that compliments your collection team should your debt requirement be in the UK or Overseas.
We are fully flexible with your Companies needs. All of our correspondence quotes your account number so that you can locate the account and the majority of our communication is made via email so that your collection team can respond at a convenient time. We understand that a credit controller needs to be on the phone and that if we call them we are slowing down their ability to do their job.
We will also offer advice if we think that your credit policy could benefit from a few tweaks. We understand that this could be cutting our corporate nose off to spite our face but we know that if these changes work and reduce the number of accounts where debt recovery is required, then you are more likely to recommend us. Lastly we understand that we will not be able to provide the best service in the market unless we listen to our clients. So we are moving the bar up in the debt collection arena and aim to continually raise the bar, so that our client will always know that their debts are being handled by the best in the industry.
Can you provide Legal Advice?
No. Only a solicitor is allowed to give legal advice. We are debt collectors and not solicitors. Debts are usually straightforward but if they are more complicated we will tell you when you should seek professional legal advice.
Does our debtor pay you directly?
We aim at all times to get your funds paid directly to you, it’s your money that is overdue so we think that this should be back in your account ASAP. There are occasions that funds are received payable to Financial Recoveries and in this instance we bank the cheque and forward your payment within 7 – 10 days once we have the banks confirmation that the funds have cleared.
When do we have to pay you?
You will be invoiced:
1. When the debt has been resolved by acceptance of money or the return of stock
2. Where the debt is settled in any way whatsoever directly with you
3. Where Judgment has been awarded and funds are received or that judgment is lodged against an asset of your debtor.
4. In the event that a credit note is raised
5. Where you request that action is halted or suspended without reasonable explanation (See term 6.7 of our terms: premature closure of account).
6. In the event that assets or stock are secured from your debtor. |
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Consumer Credit License No:
538106 |
Data Protection Registered
Number:
Z8121398 |
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