Invoice Recovery with DRS

Recovering unpaid invoices can be a frustrating and a time consuming affair for any business, having invoices paid in a timely manner plays the most crucial part of keeping your business alive. We understand the needs for our commercial clients to pursue unpaid invoices efficiently, but whilst doing so ensuring that the most cost effective methods are being used. Here at DRS we have a specialist team of Solicitors who are capable of using several methods of recovery in order to produce successful results. We handle debts and invoices of any amount quickly and vigorously, with nominal costs to you. We pride ourselves on our legal recovery services, we deliver as advertised and most importantly we don’t collect excuses, we recover debt!

Letter Before Action

The first step is always to send out the initial "Letter Before Action". This is sent out immediately upon receipt of your instructions and demands the prompt payment of the outstanding invoice(s) within a set time frame and will usually provide 14 days for an acknowledgement.

This may include a claim for interest and costs under the Late Payment of Commercial Debts (Interest) Act legislated in 1998, which makes provision with respect to interest on the late payment of certain debts arising under commercial contracts for the supply of goods or services. We also state that court proceedings will inevitably follow and will be issued without further notice incurring additional costs should payment not be forthcoming within the given time frame.

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Issue Court Proceedings

If no response is received within the given time frame, then a County Court Claim can be issued against the debtor. This will include a claim for the whole debt, including interest and compensation, legal costs and court fees. Interest can be recovered as follows:

  • Statutory Interest – currently 8% from the invoice due date up until the date of Judgment or earlier payment.

    or;

  • Late Payment of Commercial Debts (Interest) Act 1998 – statutory 8% including the Bank of England base rate, plus fixed costs associated with the Act or Contractual Interest in accordance with your terms and conditions.

What can DRS do next?

Unfortunately, certain situations can occur where debts are still unpaid even after actioning the above steps, it is at this point we would explore further avenues. Upon proceedings being issued at the County Court, arrangements will be made for the Claim Form to be served onto the Debtor, including the Notice of Issue. This confirms that proceedings have been issued correctly and commences the appropriate time frame for a response. It is to be noted from this stage onwards the Debtor is liable for the accruing interest, compensation, legal costs and court fees in addition to your unpaid invoice(s).

In the event a response isn’t received; a County Court Judgment (CCJ) can be immediately entered against the Debtor, followed by Enforcement Action. You can find out more about this here. Alternatively, should the claim be disputed and the Debtor files a Defence or Counterclaim, we will advise you accordingly on the appropriate steps available progressing your case forward. Speak to us today regarding your Unpaid Invoices and let DRS handle matters for you.