Dear Client,
Welcome to our Spring newsletter, we want to take a moment to extend a warm welcome to our new clients who have recently joined us. We are thrilled to have the opportunity to work with you.
Today we focus on “Knowing Your Customer” (KYC) and we highlight the importance of this as one of the main keys to successful debt recovery. We also look at the importance of pleading your claims fully and the HCEA process, read on for further details and please note the new hourly rate and LBC fees .
Increase to hourly rates and LBC fees from 01/05/25
We are currently undertaking our annual review of fees. The following standard increases will apply from next month:
- The pre legal rate will be increasing from£150/hr to £160/hr
- The defended rate will be increasing from£278/hr to £288/hr
- The Letter Before Claim (LBC) will increase from£10.50 to £11.50
Once the full review of fees has been completed, your updated fee scale will be sent out to you, which will include these changes and the new Court fees.
Know Your Customer! (KYC)
Whether you are chasing overdue payments from individuals or businesses, KYC is paramount to effective recovery solutions.
It’s important to capture as much information as possible about your customers and that you know who you are contracting with and who is responsible for the debt.
It is especially important if your debt case progresses to Court so that we are taking legal action against the right entity. Pursuing the wrong person or company can be both costly and timely to rectify and can damage your reputation in the process.
Taking legal action against the correct entity demonstrates professionalism and diligence, reinforcing your reputation as a responsible creditor.
Please always provide us with the following information…
Consumers;
- Full name – including title, not just an initial.
- Their date of birth – especially crucial when undertaking traces.
- Full Postal address.
- Land Line and Mobile Phone numbers.
- Email address.
- Employment details if possible.
For Business’;
- The Full company name.
- If Ltd company, the company registration number.
- The trading and registered office address.
- Email address and phone numbers.
Personal Guarantors (PGs)
A PG is an individual who agrees to take responsibility for a debt should the business or person default on its obligations. This helps to mitigate risks especially associated with new start-up companies or individuals with limited credit history. Incorporating PG’s can be a prudent strategy to help achieve your financial goals while safeguarding interests.
If you have PGs, please let us know at the time of referring the debt along with their full details.
Ultimately, taking the time to know your customer will pay dividends in the long run, not only in terms of successful debt recovery but also in maintaining strong business relationships and a solid reputation.
Claim Forms
Please always ensure we are given full details of the debt owing for cases progressing to Court.
Once we have established who you have contracted with, to strengthen your case at Court it’s also important to have an audit trail of how the debt has arisen. This preparation will support your claim if it is challenged.
For consumer debts: To correctly follow the Pre-action protocol for debt recovery we will need to know:
- Was there an agreement?
- Was it written or verbal?
- If written, do you have a copy of it?
- What was the date of the agreement?
- What is the debt for?
WE WILL ALWAYS NEED A COPY INVOICE TO PROGRESS THE CASE TO CLAIM FORM STAGE. IT IS ALSO IMPORTANT THAT WE CLAIM PROCEEDINGS CORRECTLY AT COURT AND THEREFORE IT IS IMPERATIVE THAT WE KNOW WHAT THE DEBT IS ACTUALLY FOR.
The information that you provide in order to comply with the Pre-Action Protocol for Debt Claims is also utilised for Claim Forms.
For HR debts we understand that it may not always be possible to obtain the date of the contract of employment and if this is not available then ideally we need the client to provide:
- The to/from dates of employment.
- The job title of the Defendant.
For business debts we need a copy invoice and to know what the debt was for.
If your case becomes disputed or defended at Court or you are considering a Statutory Demand, it’s very helpful to have:
- Copy invoices, purchase orders, proof of delivery, delivery notes, copy of contract and communications.
For further help and advice with any of your cases get in touch with us at: clientservices@legalrecoveries.com
HCEA Changes
As part of HMCTS centralisation initiative, from 31st March 2025, all Writs of Control must be submitted to the Civil National Business Centre (CNBC) in Northampton, rather than local courts. While this change is designed to improve efficiency in the long term, it is possible that some applications may take longer to process during the transition period.
What This Means for You:
Possible Delays: Smaller courts have historically processed applications more quickly, so there may be variations in turnaround times that you are currently used to, as CNBC adapts to the increased volume.
We kindly ask for your patience during this transition and recommend submitting applications as early as possible to minimise any potential delays.
Court Fee Increase
Following our recent communication regarding planned court fee increases, we can confirm that the Ministry of Justice will implement these changes from 8th April 2025.
Notably, this includes an increase in the transfer-up fee for sealing a Writ of Control, Possession, or Delivery, which will rise from £78 to £80.
New Information Sheets and Flow Charts available on Debt Manager
We have created some new information sheets and flow charts on the debt recovery process. You will find them on the welcome page once you have logged in to our online portal, Debt Manager under the “How we work” section. Hopefully, these will be of use to you and your teams.
Outstanding Instructions
Please review your workflow on Debt Manager and provide us with any outstanding instructions as soon as you can and on a regular basis. Delays in providing us with them can have an impact on your liquidation rates.
New Debt Cases
It’s helpful to review your ledgers on a regular basis and refer your debt cases on a regular basis. The sooner we start work the higher the recoveries should be for you.
Training/Review Meetings
If you need any help or advice with your cases in order to progress matters, or would like some training or to review matters, please email clientservices@legalrecoveries.com
Thank you for trusting us with your debt recovery.
Kind regards,
Legal Recoveries & Collections
