A four-step guide to debt collection in the UK
Debt Collection
If you’re struggling to reclaim unpaid debts, it’s easy to get frustrated and feel like there’s no easy solution. However, the truth is that there are many debt collection laws empowering you to demand repayment in a fair, safe and legal way. Simply follow these four steps to recoup what you’re owed.
1. Send demand notices
Debt collection laws require creditors to give their debtor reasonable opportunity to pay. This means the first stage will be to send reminder letters. These should make clear your rights to take the matter further and clearly state if you will begin charging statutory interest on unpaid debts. If the debtor still does not arrange payment or offer a good reason for late payment, you can issue a ‘statutory demand’. This gives the debtor 21 days to pay before you can begin legal action.
2. Use a mediator
If the debtor disputes the payment, you may wish to use a mediator to settle the matter. Having someone independent address the dispute may help solve the impasse, avoid costly court fees and potentially even salvage a business relationship. Dukes offers a mediation service that is both sensitive and efficient, and can be a key first step before taking things further.
3. Apply for a CCJ
When a debtor is wilfully avoiding payment or openly refusing to pay, you may need to begin legal proceedings. The simplest way is usually to apply for a County Court Judgment (CCJ). This can be done online via GOV.UK for a small fee. A hearing date will then be set, you’ll present your case and, if the court rules in your favour, the debtor will be instructed to pay within a fixed time frame.
4. Instruct a debt collection agency
Sometimes, even a court order isn’t enough to make debtors pay. In these instances, you can use court enforcement agents or a private debt collection agency, like Dukes Bailiffs, to enforce the judgment. Private certificated Enforcement Agencies will act quickly and efficiently to recover debt. In some cases, Dukes can also escalate the matter to the High Court in order to recoup your money.
For more information about our services and how we can help you recover unpaid debts, contact Dukes Bailiffs today!
