What is the difference between a debt collection service and the debt collection service?
It is commonly believed the two terms debt collection and debt collection are one and the same. They are similar, don’t they? They are similar to each other. English Oxford Dictionary defines ‘recovery” and “collection” as:
Recovery means Retrieval, Possession Recovery = Retrieving, Repossession, and Redemption.
Collection/Collect = Group To Assemble to Fetch, and to accumulate.
Similar, but not exactly the identical.
A large portion of debt recovery issues are handled by solicitors following the debt collection process has been tried but unsuccessfully, and the debt is still due.
A debt collection agency in London may offer a quick and affordable service available that can be started online.
According to our experience, companies that collect debt typically send regular 7-day payment demand letters that provide basic details about the debt. But, as the old saying is, “you get what you pay for”. If no response or payment be made to the demand for payment the letter will not suffice if you required to move the matter to court proceedings since it is not in compliance with the Court’s pre-action requirements.
Do debt collection companies be able to make your claim or issue an Statutory Demand on the reverse of this 7 day demand? It’s possible however, there could be serious consequences for doing this. First of all, a reasonable period (in the view of the Court) for the debtor’s response can be 14 days (longer in more complicated situations). There are certain details to be included in the Letter before Action or a Letter of Claim that these seven days demand letters for payment often do not include. The result could be consequences like the Court issuing costs sanctions or the case may be stopped in the Court (halted for a specific time) as the reason for not adhering to the proper procedures are investigated.
A crucial aspect to think about is whether a debt collection company is able to negotiate and communicate with the debtor in the event the debt is contested and help move your issue to a successful conclusion. From my experience, the debt collection companies do not typically handle disputes.
It’s not to say that a letter of collection could not be effective, but it could be effective when the situation is simple and the payment is returned and the case is concluded. In the event that there is no response or payment or if the debt is disputable, the debt collection process is exhausted and could lead to additional costs that are incurred prior to the instructions of solicitors and the formal process of debt recovery.
Debt Recovery
If the debt is due in the course of business or between people the process of recovering debt begins in accordance with the objectives set out in the Pre-Action Practice Direction Procedures and Conduct. If the debt is due to a company from an sole trader or an individual the process for recovering it must be in line with the 2017 Pre-Action Procedure for Debt Claims , which was recently adopted through the Ministry of Justice. If a case has to be taken to Court it is essential that the compliance with these guidelines is clearly demonstrated. If not in compliance, penalties could be in place, especially as in relation to costs. These protocols guarantee that parties share a sufficient amount of information prior to the beginning and demonstrate a willingness to resolve any disputes without needing court procedures.
We understand that every case is unique – it is extremely rare that the circumstances that lead to the non-payment of invoices or the accumulation of debts are identical. If necessary, we will suggest you instruct us to conduct pre-action checks regarding the creditworthiness that the borrower has.
We are proud to offer complete, efficient and, more importantly, fully legally compliant debt recovery solutions which are tailored to your specific circumstances and needs to ensure an efficient, quick and satisfying result.
We can also give advice on the possibilities of debt recovery actions should you decide to proceed through Court proceedings and take steps to enforce any judgments obtained and provide advice on the best method of enforcement in the specific circumstances.
