Debt Recovery
Pricing Transparency
Our debt recovery team operates under the name of Acclaim Credit Management and Recovery. Acclaim was launched with the vision of creating a market-leading fast, efficient and flexible commercial debt recovery service, which would provide clients with the opportunity to recover outstanding debts cost neutrally.
Our model works on a contingency basis. If we do not recover a debt on your behalf, we do not get paid. If we do recover a debt on your behalf, we charge for the service that we have provided.
How do we aim to provide a cost neutral service for Commercial Debt Recovery?
In accordance with the Late Payment of Commercial Debts (Interest) Act 1998 (the Act), where a debt is a ‘qualifying debt’, there is an implied term which entitles you to add to the Principal Debt the following:
- Statutory Interest (8% above base rate);
- Additional Compensation made up of;
a. A Fixed Sum which varies depending on the size of the debt in addition to the Statutory
Interest; AND
b. The right to recover Reasonable Costs to the extent that they are not covered by the Fixed Sum.
Subject to your instructions, the above sums are added to the Principal Debt as a contractual term and are payable as compensation to maximise your opportunity for recovery.
Why do we rely on the Act?
By way of example, in the absence of an express or implied contractual provision, the default position would be that you would be entitled to claim interest at a rate of 8% pursuant to the County Court Act 1969 (although this is subject to judicial discretion). You would not be entitled to recover the Additional Compensation.
A claim which is valued at less than £10,000, would ordinarily be allocated to the small claims track, where the usual rule would be that you would not be entitled to recover your legal costs (other than the court fees paid).
Where a claim is valued at more than £10,000, you would ordinarily expect a court to order that the debtor should pay a proportion of the legal costs incurred.
In both of the above situations, costs would only be recoverable after the issue of court proceedings.
There would be no contractual entitlement to recover the higher rate of Statutory Interest and Additional Compensation provided under the Act (and recovering interest would be more difficult) at the pre-action stage.
It is for that reason, for commercial B2B debt recovery, we seek to protect your position by applying the contractual right to Statutory Interest, Fixed Sum and Reasonable Costs.
If court proceedings are issued, Court Fees paid out are included within the amount claimed of Reasonable Costs.
Acclaim charges
Our business model was created with the aim of making the recovery process of B2B debts ‘cost neutral’ to clients. The aim is to ensure that you recover the Principal Debt, together with any court fees or disbursements that you pay out. Our charges are recovered as part of the Additional Compensation under the Act.
Our charges are based on an agreed percentage of any Financial Benefit received if the case is concluded with an award to you of Financial Benefit, damages or settled upon terms which include the payment to you of that Financial Benefit.
Together, the:
- Principal Debt;
- Statutory Interest;
- Fixed Sum; and
- Reasonable Costs.
Represent the Financial Benefit received by you, if they are recovered.
As we work on a contingency basis, if we do not make a recovery on your behalf we do not raise any charges.
Pricing Scale
Our charges will depend on which stage of the process a recovery is made. Stage 1 – Pre-action, or Stage 2 – Issue of court proceedings. Our standard charges are scaled depending on the size of a debt. VAT will be added to the charges set out below at 20%.
STAGE 1 – PRE-ACTION
| Amount | Contingency Fee | ||
|---|---|---|---|
Range of Debt | % of amount recovered | ||
Up to £500.00 | 25.00% | ||
£500.01 to £1000 | 20.00% | ||
£3000.01 to £5000 | 15.00% | ||
£5000.01 to £7000 | 12.00% | ||
£7000.01 to £10,000 | 10.00% | ||
£10,000.01 to £20,000 | 8.00% | ||
£20,000.01 to £30,000 | 7.00% | ||
£30,000.01 to £40,000 | 5.00% | ||
£40,000.01 to £50,000 | 4.00% | ||
£50,000.01 to £60,000 | 4.00% | ||
£60,000.01 to £70,000 | 4.00% | ||
£70,000.01 to £80,000 | 3.50% | ||
£80,000.01 to £90,000 | 3.25% | ||
£90,000.01 to £100,000 | 3.00% | ||
STAGE 2 – ISSUE COURT PROCEEDINGS
| Amount | Issue Court Fee* | Contingency Fee | ||
|---|---|---|---|---|
Range of Debt | % of amount recovered | |||
£500.01 to £1000 | £70.00 | 30.00% | ||
£1000.01 to £1500 | £80.00 | 25.00% | ||
£1500.01 to £3000 | £115.00 | 20.00% | ||
£3000.01 to £5000 | £205.00 | 17.00% | ||
£5000.01 to £7000 | £455.00 | 17.00% | ||
£7000.01 to 10,000 | £455.00 | 15.00% | ||
£10,000.01 to £20,000 | 5% value of Claim | 11.00% | ||
£10,000.01 to £20,000 | 5% value of Claim | 9.00% | ||
£30,000.01 to £40,000 | 5% value of Claim | 9.00% | ||
£40,000.01 to £50,000 | 5% value of Claim | 9.00% | ||
£50,000.01 to £60,000 | 5% value of Claim | 8.50% | ||
£60,000.01 to £70,000 | 5% value of Claim | 8.25% | ||
£70,000.01 to £80,000 | 5% value of Claim | 8.00% | ||
£80,000.01 to £90,000 | 5% value of Claim | 8.25% | ||
£90,000.01 to £100,000 | 5% value of Claim | 5.00% | ||
*Please note: Interest and compensation may take the debt into a higher banding, with a higher court fee and higher cost.
If you have any questions about our pricing model or how out credit management and recovery service could work for your business please do not hesitate to speak to a member of the team.
Who will work on your file?
We have a team of experienced legal professionals who may work on your file. Details of who will have conduct of your matter will be provided to you at the outset of your instruction.
Our Team
| Team Member | Role | Experience of debt recovery work and qualifications | ||
|---|---|---|---|---|
Matt Perry | Recoveries Manager | Over 10 years’ experience, Studied CiLEx Level 2, CPD certification Leadership. | ||
Sean Thornhill-Adey | Recoveries Executive | Over 2 years’ experience, BA | ||
Dan Hirst | Partner | Over 10 years’ experience, Solicitor. | ||
Kaye Willis | Partner | Over 10 years’ experience, Solicitor. | ||
Zoe Allen | Associate | Over 6 years’ experience, completed studies for CiLEx. | ||
Jamie Howard | Paralegal | 2 years’ experience with a law degree and has also completed the Legal Practice Course (LPC). | ||
Katy Mullarkey | Recoveries Executive | Over 1.5 years’ debt recovery experience. | ||
Ella McMaster | Trainee Recoveries Executive | Over 6 months’ debt recovery experience and is studying for her level 2 CICM Diploma. | ||
The debt recovery service offered by Acclaim Credit Management and Recovery is designed to deal with commercial B2B uncontested debt recovery. We can assist you with B2C claims, but it is unlikely that you would be able to recover the higher rate of Statutory Interest and Additional Compensation provided under the Act.
We are part of the Chadwick Lawrence family and we have the benefit of the support from our colleagues in the commercial litigation team. Unlike other debt recovery professionals, if the matter becomes contested and a Defence is filed, the Litigation, Resolution and Recovery team at Chadwick Lawrence are available to provide support for contested commercial litigation matters. Pricing of that service is agreed on a case by case basis. Factors to be taken into account will be the nature of that dispute, the complexity of the dispute, the value of the claim, and an assessment of the work which will need to be undertaken by that team.
