Forbes Collect

A debt collection agency is a company that pursues unpaid invoices or outstanding debts on behalf of the creditor. Whilst not being a debt collection agency, Forbes Collect is a unique, solicitor-led service that will aid you in the collection of your unpaid invoices.

Debt recovery agencies will put a large amount of pressure on the Debtor's that may sometimes damage commercial relationships. These agencies are also not able to issue County Court proceedings, should you need to do so.

While every debt collection agency in the UK is subject to the same legislation and regulations, each one will have their own set of procedures that they will follow, within that framework. Forbes Collect is a solicitor led debt collection service, so are well placed to take legal action against a debtor, if needs be.

Our Forbes Collect team are experts in debt collection and as we are solicitors this brings the following added benefits:

1. We are experts in what we do and specialists in debt recovery
2. We provide straightforward, practical legal advice that is adapted to the needs of your business
3. We can progress your claim by issuing court proceedings should the circumstances require it, something that debt recovery agents cannot do
4. If the claim is defended, we have a team of solicitors who can properly advise on next steps and ensure that the best course of action is taken whilst ensuring costs are kept to a minimum
5. We pride ourselves in delivering the highest standard of client care and service, ensuring that our client's come first and that their requirements are central to everything we do:
   • Our client portal is available 24/7 and helps us deliver this enhanced service
   • Efficient and streamlined collections makes debt recovery as easy and cost-effective as possible for our clients
6. We work on a no win, no fee basis. So, if we don't recover your debt you won't have to pay us a penny
7. Many alternative ways of enforcing a county court judgment
8. The use of a cutting edge cloud technology, so you are always in control

Forbes Collect has a service that is designed to guide you throughout the whole process, from the initial letter stage to enforcement stages. We are able to give you the correct advice and as it is a 'no recovery, no fee' service, we only get paid when you do!

In England, in accordance with the Limitation Act 1980 you have six years to pursue an unpaid debt. This time period runs from the date payment comes due.

After this timeframe has elapsed the debt becomes Statute Barred. This means that if you pursue the debt and issue a County Court Claim after the six years have expired the debtor has a complete Defence to the claim. This means that the debtor could use the expiry of the limitation period as a reason for not paying the debt. The burden would then be on you to prove that the time frame hasn't expired.

However, if you have been in contact with the debtor but believe the time frame to have lapsed it is always worth checking with our Forbes Collect team. The debtor may well have acknowledged the debt and so you may be entitled to pursue the unpaid invoices in any event.

Once you have issued a County Court Claim and have been successful in gaining a County Court Judgment (CCJ) against the debtor; it means you the court has ordered the Debtor to pay a sum of money over to you. This will be the amount of the claim plus interest from the Date of Issue of the Claim to the Date of the Judgment. The order will either provide for payment forthwith, which means immediately or will provide a deadline for payment.

The CCJ will be registered on the Register of Judgments and unless the Judgment is paid in full within 30 days of the deadline it will have a detrimental impact on the debtor's credit rating. This will affect their ability to get credit. If the debt is paid after the 30 day deadline, the Judgment will not be removed from the Register it will only be marked as satisfied.

However, a Judgment does not in itself guarantee payment of the debt. Our Forbes Collect team may have to take further enforcement action should the debtor not be forthcoming with payment. It is this enforcement action, which is the additional step leading to payment.

If you are trying to collect a debt from someone and do not wish to issue County Court Proceedings one alternative way is to commence Insolvency Proceedings. The first step in Insolvency proceedings is to serve a statutory demand, which is a formal demand for the payment of a debt. This demand gives the debtor 21 days to make payment of the debt in full. The debtor is warned that failure to make payment will mean that a Bankruptcy or Winding-Up Petition will be presented.

If the debtor is an individual - the debt has to be over £5000 to take insolvency action. A Statutory Demand would be sent and then a Bankruptcy Petition presented.

If the debtor is a company - the debt has to be over £750 to take insolvency action. A Statutory Demand would be sent and then a Winding-up Petition presented.

Advantages:

• The threat of Bankruptcy or Winding-Up proceedings can be a powerful incentive for a debtor to pay given the serious nature of insolvency proceedings
• Preparing a statutory demand is included in our 'No Recovery, No Fee service' - you are only required to pay the disbursements (i.e. court fees) for instructing a process server in advance
• The preparation and service of a Statutory Demand are quick and inexpensive
• Can either result in prompt payment of a debt or be useful to highlight any disputes over the debt

Disadvantages:

• It is seen as an aggressive step and may have a negative impact on ongoing business relationships
• It may not result in payment and the next steps would be issuing a County Court Claim or proceedings with the threat and presenting a Bankruptcy or Winding-Up Petition. This is very costly
• If a debtor can raise an arguable defence to the obligation to pay, then the demand may be set aside and you would have to proceed by way of County Court proceedings

This step should particularly be considered if the debtor is a company and you know that they are in a position to pay their debts.

If you are pursuing debt from a company in Scotland or Northern Ireland, this is considered out of jurisdiction and thus a different fee structure applies. Out of jurisdiction claims that are resolved during the pre-litigation phase will be charged on a 'No Recovery, No Fee basis'. However, if a County Court Claim needs to be made, taking enforcement will be charged according to our fixed fees, as the process is more complicated.