What is the different between a debt recovery service and a debt collection service?
It is commonly believed it is the same for debt collection as debt recuperation. debt collection are two different things. They sound alike, don’t they? According to the English Oxford Dictionary defines ‘recovery” and “collection” as:
Recovery = Retrieval, Getting back and Redemption.
Collection/Collect = Group To Assemble to Fetch, and to accumulate.
Similar, but not exactly the exact.
A significant portion of debt recovery issues are dealt with by solicitors following debt collection has been attempted without success and the debt remains due.
Debt collection companies offer a cheap and fast online service on the internet.
We have observed that collections agencies for debt usually send regular 7-day payment demand letters that give basic information about the amount owed. However, as the old adage goes, “you get what you pay for”. If no response or payment be made to a payment demand letter it will not be sufficient if you required to move the matter towards Court proceedings as it is not in compliance with the Court’s pre-action obligations.
Do debt collection companies be able to make your claim or issue a Statutory Demand of the back of this 7 day demand? Yes possibly, but there could be grave consequences if you do this. First of all, a reasonable period (in the eyes of the Court) for a debtor’s reply is 14 days (longer in more complicated situations). There are certain details that should be included in the Letter before Action or a Letter of Claim and these 7 day payment demand letters frequently fail to contain. This can lead to negative consequences, such as the Court issuing costs sanctions or the case may be adjourned in the Court (halted for a certain period) as the reason for not adhering to the proper protocols are investigated.
The most important thing to consider is whether a debt collection Leeds company can enter into negotiations and contact the debtor in the event that there is a dispute over a debt, and help move your problem to a resolution that is satisfactory. In my experience, agencies that collect debt do not usually deal with contested matters.
However, this isn’t to suggest that a debt collection letter might not be effective, it might be able to be effective for a simple matter with the intention of having payment received in return and the case is concluded. In the event of no response or no payment or if a debt is contestable, the collection process has been exhausted and could result in additional costs accruing prior to the instruction of solicitors and the formal process of debt recovery.
Debt Recovery
If an obligation is due in the course of business or between people the debt recovery process begins in accordance with the objectives set out in the Pre-Action Practice Direction conduct and protocols. If the debt is due to a business from an sole trader or an individual The recovery process must be in line with the 2017 Pre-Action Procedure for Debt Claims which was recently adopted in the Ministry of Justice. If a situation has to go to court it is crucial that compliance with the protocols is clearly demonstrated. If not met, then sanctions could be imposed, particularly as far as costs are concerned. The protocols make sure that the parties exchange a sufficient amount of information in the initial meeting and show a willingness to deal with any issue without having to resort to court procedures.
We recognize that every situation is completely unique. It is not often that the circumstances that lead to the non-payment of invoices or the accrual of debts will be the same. Where appropriate, we may suggest you instruct us to conduct pre-action checks to determine the credit worthiness of the debtor.
We take pride in providing effective, thorough and, the most important, fully conforming debt recovery services that are tailored to your specific circumstances and needs to ensure a fast, cost effective and satisfactory result.
We can also give you advice on the prospects of the debt recovery process should you decide to proceed with Court action and take steps to enforce any Judgments that are obtained and provide advice on the most appropriate method for enforcement for the particular circumstances.
