Fixed price Solicitors Demand Letters

Low fixed cost - the most effective way to recover debts fast.

We expect to recover 80% of accounts passed to us without taking further action.

Which Demand Letter should you use?

Demand Letter (“LBA”) - Consumer or Commercial Debts

Simple and effective – a demand letter requiring payment from a debtor within a fixed period of time, which you decide e.g. 3 -5 -7 or 10, days according to your instruction.

When to use: For commercial or consumer accounts. Only basic information is needed which is more suited for consumer recoveries or delinquent commercial accounts where debtor response is encouraged to handle payments, query resolution and instalment plans. More….

If the debtor does not make payment and Court action is required, a Letter Before Claim (“LBC”) may be required before Court action is subsequently taken (see below).

Letter Before Claim (“LBC”) - Consumer or Commercial debts

A Final Demand before Court action for payment against a consumer or commercial debtor which complies with the Pre-Action Protocol for Debt Recovery.

More…..The Pre-Action Protocol requires the LBC to supply specific information about the debt which a creditor is required to provide to a debtor before Court proceedings are issued.

When to use: For commercial or consumer accounts. This is a 14 day final demand before Court Action, which includes claims for interest, and Late Payment Compensation and Interest if recoverable. More….

We will need to be supplied with sufficient information to enable us to issue the demand. This is a firm and formal style of letter and is the last step before Court proceedings are issued. If the debtor has admitted the debt then it may not be necessary for the demand to be sent before issuing proceedings.

Late Payment Demand (“LPD”) - Commercial Debts

For Business to Business debts, a Final Demand claiming in addition to the debt compensation and interest under the Late Payment Act Legislation before starting court action.

When to use: For Business to Business debts, this is a “final demand” for payment before Court Action creditors are entitled to claim late payment compensation of £40, £70 or £100 (according to the amount of the debt) plus late payment interest of 8% above base rate. More…..

Available for business debts for the supply of goods/services from one business to another, where the terms of the contract do not have an interest clause for late payment. The Demand

Dishonoured Cheques – Consumer or Commercial

For Commercial or Consumer debts this letter is designed to handle bounced cheque recovery, where formal notice of dishonour of the cheque needs to be given to the debtor prior to issuing Court action. More….

Dishonoured cheques are treated as admissions of debts, and in most cases it is difficult for a debtor to raise disputes or cross claims without paying for the goods or services supplied.

When to use: when Court action for recovery of a debt is to be based on a bounced cheque and formal notice of dishonour has to be given to the debtor. A copy of details of the dishonoured cheque will need to be supplied to us.

Guarantor Letter Before Action

Commercial or consumer debts based on a Guarantee a formal demand letter needs to be sent to the Guarantor to start recovery action if the debtor has failed to pay the guaranteed debt to the creditor. More…

To be enforceable a Guarantee must be in writing signed by the guarantor(s). We will need to be sent a copy the Guarantee together with details of the debt. If there are multiple guarantors a creditor may pick and choose which guarantor to pursue.

When to use: commercial or consumer accounts where liability for the debts is guaranteed by a written Guarantee signed by the guarantor and the creditor wishes to recover the debt from the guarantor(s) .

Statutory Demands & Winding Up Demand Letters

An extremely effective strategy for recovering debts above £750. As an alternative to taking Court action the threat to a debtor of issuing Winding Up or commencing Bankruptcy proceedings will very often result in settlement. More…..

Companies & Partnerships - Winding Up Demand Letters may be issued against companies & partnerships for payment within a fixed timescales. Alternatively more formal Statutory Demands may be served on individuals and company debtors in accordance with the Insolvency Act 1986, demanding payment within 21 days.

When to use: These Demands are “heavy duty” and appropriate in situations where debtors are simply ignoring all reasonable requests for payment and there is no known dispute. The effect of insolvency proceedings against debtors has far reaching consequences. Failure to respond to such a demand entitles the creditor to issue a Winding Up Petition against companies/partnerships or a Bankruptcy Petition against individuals.

Bespoke Letter Before Action & Workflows

For particular types of debts or debtors or specific situations for commercial or consumer accounts we can draft individual letters and workflows for clients to maximise debtor engagement and recovery More….

Depending on the nature of the debts and the strategy required, we will work closely with you to ensure our letters are drafted to ensure they are appropriate. Even if there are complex facts or issues concerning particular accounts or specific information needs to be provided; we are able to draft letters to deal with any situation.

When to use: For commercial or consumer accounts with specific needs or situations or where complex or difficult facts are involved where specifically drafted letters are necessary.