15 Feb2016
Debt to collect or not?
Here is an article published by our very own Kerry Bland, with advice on preventing bad debt.
Your Business Feb 2016
10 Mar2015
Court fees rise up to 600%
Civil court fees for money claims over £10,000 have risen to five per cent of the value of the claim.
The controversial fee increase, of up to 600 per cent in some cases, affects both specified and unspecified claims. They will be capped however at £10,000 for claims of £200,000 or more.
There will also now be a fee of 4.5 per cent of the claim’s value for claims over £10,000 issued in the County Court Business Centre. A 10 per cent discount remains on all money claims made online.
The changes come after a series of objections from parties including The Law Society, which claimed the new fees are tantamount to “selling justice.”
Despite widespread opposition, a final House of Lords vote approved the changes last week.
The Law Society is now mounting a legal challenge in a bid to kick-start a judicial review. It has sent a pre-action protocol letter and is waiting for the government’s response.
The society’s president Andrew Caplen said: “The government appears to be on a mission to turn the courts into a profit centre, amounting to a flat tax on those seeking justice.
“The increases may leave small and medium-sized businesses saddled with debts they are due but unable to afford to recover.”
But justice minister Shailesh Vara said: “Access to justice is a fundamental principle of our legal system and this is not threatened. 90 per cent of the claims will be unaffected by these changes and waivers will also be available for those who cannot afford to pay.”
Critics say some claims will now attract fee increases of almost 600 per cent. For example, if a claim is for £150,000, under the previous system, the fee would have been £1,115. From today (March 9) the court fee will be £7,500.
The Civil Justice Council, which represents court users and judges, said claimants will simply pass on the increased costs. It argued that lenders and landlords will review rates and rents and recover them from mortgage payers and tenants.
Its statement on the changes added: “No account has been taken of the impact of the large fee increases imposed only eight months before these proposals were published.
“Another major concern is the disproportionate cost effects of this set of fee rises. The current measures have an adverse effect on lower value claimants. For example, any application made in claims of £1,500 or less will cost more than the fee for commencing proceedings.”
The Ministry of Justice (MoJ) is yet to respond to a separate consultation on changes to fees for eviction and possession claims.
The department has proposed that the cost of bringing a claim for eviction will go up from £280 to £355. Its consultation also states that for those who use the Possession Claims Online service, the fee will rise from £250 to £325.
Fees for claims in the Small Claims Court, for claims worth up to £9,999, remain unchanged.
Source: www.credittoday.co.uk/article/17654/online-news/court-fees-rise-up-to-600-today
10 Apr2013
Legislation Update : The Late Payment of Commercial Debts Regulations 2013
Legislation Update:
The Late Payment of Commercial Debts Regulations 2013
United Kingdom: Late Payments: EU Directive Implemented
08 April 2013
Article by Brian Cain
Taylor Wessing
5 New Street Square
London EC4A 3TW
In relation to contracts concluded after 16 March 2013 the rights conferred
on creditors by the Late Payments of Commercial Debts (Interest) Act 1998
have been given a boost by The Late Payment of Commercial Debts Regulations
2013 which came into force on that date. The new regulations implement
Directive 2011/7/EU of the European Parliament and of the Council of 16
February 2011 on combating late payment in commercial transactions. Broadly
speaking the Regulations specify payment periods for contracts for goods or
services, by providing that interest on outstanding payments starts to run
after certain time periods depending upon when the goods or services are
delivered or the relevant invoices received. In the case of contracts with
public authorities interest will begin to run after 30 days and for
contracts with other entities the relevant period is 60 days. Knowing the
detail of these new regulations will help any suppliers who have not
expressly provided for default interest in their terms and conditions.
The content of this article is intended to provide a general guide to the
subject matter.
Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to
the author.
Posted by: Ian (D. Withers)
Past Chairman & GC Member
29 Oct2012
Jack Russell Autumn Winter 2012 Networking Schedule
Come and join us at one of the following events this Autumn/Winter. Our Managing Director, Kerry Bland will be on hand to discuss how we can help you recover the money you are owed. If you wish to come to any of the following events, please contact us at sales@debtcollect.co.uk or the specified venue directly.
November 2012.
6th – 7th November, Conference at Belton Woods, Grantham.
13th November, High Peak Network at the Palace Hotel, Buxton. Evening event.
14th November, Sheffield Curry Club at Aagrah Restaurant Sheffield. Lunchtime event.
15th November, Business Network South Lakes at Castle Green Hotel, Kendal. Lunchtime event.
19th, 20th, 21st November, Business Exhibition in Edinburgh. (Venue to be confirmed.)
27th November, Institute of Directors at Media City, Salford Quays. Starts 4.30pm.
28th November, Manchester Curry Club at the Rajdoot Restaurant, Manchester.
December 2012.
7th December, Institute of Directors at Albert Square Chop House, Manchester. Lunchtime event.
12th December, Manchester Curry Club at the Rajdoot Restaurant, Manchester.
13th December, Business Network South Lakes at Lancaster House Hotel, Lancaster.
17th December, Macclesfield Chamber of Commerce Network at Adlington Hall. Lunchtime event.
January 2013
8th January 2013 – 10th January 2013, Conference at Devere Habern House Hotel, Milton Keynes.
Hope to see you there!
20 Aug2012
Jack Russell Debt Collection and professional memberships.
Jack Russell is an accredited member of the following Professional Organisations; Cumbria, Macclesfield, Lancaster and London Chambers of Commerce. The Association of Credit Professionals and the Federation of Small Businesses. Such organisations ensure we always have access to quality advice and support and enable our voice to be heard by local councils and the Government. They also provide regular networking events which we always attend. Come and join us any many other businesses at the next Chamber of Commerce networking event to see what it could do for your business. Our networking schedule can be found here; www.debtcollect.co.uk/2012/06/jack-russell-networking-schedule-summerautumn-2012/
08 Aug2012
How to enforce County Court Judgments including execution!
- Once you have your County Court Judgment registered and your debtor blacklisted, you have many Enforcement Order options if you still don’t receive payment.
- If they are in employment, you know where the debtor lives and you have details of where the debtor is working you can enforce an Attachment of Earnings Order. This Order works to deduct instalments of what you are owed from the debtor’s monthly wage. However if your debtor moves jobs this can make things difficult as you will have to start the enforcement process again.
- Third Party Orders allow you to collect money directly from the debtor’s bank account. A third party is an individual or company that holds money for the debtor, typically a bank or building society. However this Order is only effective on the day that it is served so you will only receive payment if the debtor has money in their account on that day.
- An Order for Financial Questioning is useful if little is known about the debtor and their assets. The debtor or a Director of the debtor’s company is served an order to attend court at a certain time on a certain date to give details under oath about their finances and assets. If the defendant fails to turn up they can be threatened with prison although this threat is rarely followed through.
“This is the stage that no-one forgets.
Well would you if someone had removed your assets!”
– Kerry Bland.
- To serve a Charging Order the debtor needs to have some equity in a property. This can be tricky as it is difficult to force a sale and you could be waiting a long time before you see any payment.
- County Court Bailiffs can be instructed to seize goods to the value of the debt plus costs. County Court Bailiffs are Civil Servants and get paid the same amount regardless of success so most creditors do not find them as effective as other types of Bailiff such as High Court Sheriffs. High Court Sheriffs will deal with debts of £600 or over. They will transfer the debt to the High Court for you and obtain then execute a Writ (a formal written Order) suited to your needs. The Sheriffs are allowed to add fees to the debt, which the debtor will have to pay in addition.
- As a last resort and only where it is known that the debtor or debtor company do have the means to pay, you can issue a Bankruptcy or Winding Up Petition. Bankruptcy is for individuals and Winding Up is for companies. This can be costly as it is essentially the first steps in liquidating a company or declaring an individual as Bankrupt. Both of these procedures are very serious.
02 Aug2012
Jack Russell Debt Collection at the Macclesfield Chamber of Commerce Summer BBQ
Jack Russell attended the Macclesfield Chamber of Commerce Summer Networking event and BBQ at the Bridge Hotel in Prestbury on the 19th July. A lovely evening was had by all with great weather, food from the barbeque and many networking opportunities. The next event we will be attending is the Bowdon Business Club Network and BBQ on the evening of 23rd August, we hope to see you there!
19 Jul2012
3 Debt Collection Terms Explained
3 Legal Terms Explained.
Liquidation. – Liquidation is the process of the ending of a company. This can follow a Winding Up Petition from the court. When a company is in Liquidation, all the assets are distributed to cover outstanding debts. After this, the company ceases to exist.
Insolvency. – Insolvency means you are unable to pay your debts. You will become insolvent when your losses consume your surplus assets.
Solvent. – Whether a company is solvent or not depends on the liquidation status. A company in liquidation is not solvent unless the directors can declare they can pay all creditors within a year.
19 Jul2012
How Credit Controllers should control
“Our credit control, that’s dealt with by Mrs Stanage
She only comes in once a month, that’s all she can manage.”
- Effective phone calls. Have you got the right person making the right calls? A Credit Controller should be firm but fair. Credit Controllers need to be able to take the rough with the smooth and to expect to be shouted at – debt is an emotional subject. Aid consistency by assigning Credit Controllers to customers so they can monitor the payment process effectively and personally as it develops.
- Ensure you keep proper history notes of the best day and time to call. Voicemails can go ignored or be avoided. Avoided calls equal avoided payment.
- Have a proper structure and procedure. Call your customer once the invoice has been sent to make sure it has been received. This will be seen as courteous and is also smart practise as you will know if they are choosing to ignore it if payment doesn’t happen following confirmation of receipt.
- Deal with queries quickly and don’t allow customers to withhold the whole debt if a small credit note could resolve the problem.
- Issue regular, clear statements followed by at least one reminder and a final demand.
- Put the customer on stop if you are supplying an ongoing service or goods to encourage them to make payment, save your resources and prevent further owings.
- If you agree to any instalment arrangement, ensure that you put this agreement in an e-mail or letter of confirmation. Make sure you keep a copy of any cheque payment made by a customer paying in instalments.
28 Jun2012
3 Legal/Debt Collection Terms Explained
1) County Court Judgment (CCJ.) – A CCJ is a legal document that is obtained against the debtor after legal action has been taken. This document enables enforcement to be carried out.
2) Sheriff Fee. – A Sheriff Fee is an enforcement fee taken by a Bailiff, following a Judgement to obtain goods to the value of the Judgment debt.
3) Affidavit. – An Affidavit of Service is carried out in court and under oath. The Server of legal process testifies their service.
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