Pre Legal Debt Recovery

LRC offers a full range of debt collection services to suit your individual requirements including pre-legal collections, tracing, data gathering and dispute resolution. We can tailor a strategy to best suit your customer base whether it is commercial or consumer or a mixture of both.

LRC offers a full range of debt collection services to suit your individual requirements including pre-legal collections, tracing, data gathering and dispute resolution. We can tailor a strategy to best suit your customer base whether it is commercial or consumer or a mixture of both.

Pre-legal collections refers to the initial phase of debt collection and typically comprises of a combination of letters, emails and telephone calls prior to any legal action being taken against a debtor. During this stage, the creditor or a debt collection specialist attempts to recover outstanding debts from individuals or businesses who have fallen behind in relation to paying their outstanding invoices.

The pre-legal collections process typically involves communication with the debtor through various means, such as phone calls, letters and emails, to remind them about the unpaid debt and request payment. The goal is to encourage the debtor to voluntarily resolve the outstanding debt without resorting to legal action.

In most cases, pre-legal collections involve negotiation to reach a payment arrangement or settlement that is acceptable to both parties. If successful, this process can help avoid the time and costs of proceeding down the County Court route to recover the debt.

However, if the debtor remains uncooperative or unable to make payments during the pre-legal collections phase, the creditor may consider escalating the matter to a debt recovery specialist who is regulated by the Solicitors Regulation Authority to commence Court action by issuing a County Court Claim Form, followed by a County Court Judgment and subsequently using whichever method of enforcement action is most appropriate to recover the debt.

Consumer Debts

These usually follow our 30-day strategy which comprises of three letters send by post and email and supplemented by a combination of effective SMS text messages and telephone calls. All correspondence can be viewed and downloaded from our online Debt Manager system.

Commercial Debts

We can create a strategy most appropriate to your customer base however, the standard initial action usually undertaken when pursuing business to business debts is a letter before action (LBA) supported by telephone calls and internet checks to confirm contact details. We claim either contractual or late payment legislation interest and late payment compensation from the LBA stage and the amount is added to the debt value and is also included on any subsequent claim form should court proceedings be issued.

During the collections process we can also seek to obtain information about your debtors should you so wish including information as to outstanding County Court judgments, insolvency information, home-ownership checks as well as employment information. This information all assists in the decision-making process as to whether it is feasible to go ahead with Court action.

Pre Legal Review / Triage Service

If you have a case where you need to understand your prospects of success in terms of the agreement / contract in place and any known disputes, we can advise you as to the likely costs of Court action, highlight any potential issues and give you advice on the best course of action, which may be to proceed with pre-action communications with a view to the issue of Court proceedings, insolvency proceedings or mediation.

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Featured Customer Reviews

Credit Control Manager – Leading International Law firm

“LRC provide a professional and efficient service, delivering regular updates and effective solutions”

International Credit Insurance Client

We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.

North East Ambulance Service

As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.

The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.

London Metropolitan University

We have worked with Legal Recoveries and Collections for a number of years now and they have provided an outstanding service to us. We have worked closely with the team and have a good working relationship with both Rachel and Andrea. Their online portal is very user friendly. They have collected both pre-legal and post legal debts for us to a high standard and we would recommend their services to anyone considering using them going forward.

Utilita Energy Limited

We contacted LRC when we wanted to strengthen our collections processes and recover debt after we had exhausted our internal processes attempting to collect. From the off, LRC offered exceptional advice and support and helped us shape the way in which we approach collections. The team at LRC have a wealth of knowledge and experience which has enabled them to collect a significant amount of money on our behalf and through their professional approach have helped to change customer behaviour in many cases from infrequent to regular payers. LRC have tailored their collections activities to meet our needs and regularly make suggestions to make sure we spend our money wisely to ensure maximum return from their services . We are currently working with LRC to create a bespoke training package that they will deliver to staff across the business who manage and recover debt. I would not hesitate to recommend LRC for debt recovery.

James Paget University Hospitals

We have worked with LRC for about 9 years now and throughout this time they have provided us with good customer service and are always prepared to go that extra mile. Their recent gaining of ‘law firm’ status enables them to now handle the entire debt recovery process for us from pre-legal collections, through to legal proceedings and enforcement therefore ensuring continuity.

Frequently Asked Questions

1. What is pre-legal debt recovery?

Pre-legal debt recovery refers to the initial phase of debt collection, where attempts are made to recover outstanding debts without resorting to legal action. This process typically involves sending letters, emails, and making phone calls to remind the debtor of the unpaid debt and encourage payment.

2. How does pre-legal debt recovery work?

During this stage, we communicate with debtors through various methods, such as letters, emails, SMS messages, and phone calls, to negotiate a payment arrangement or settlement. The goal is to reach an agreement that is acceptable to both parties and avoid the time and costs associated with legal action.

3. What happens if the debtor doesn’t pay during the pre-legal stage?

If the debtor remains uncooperative or unable to make payments during the pre-legal collections process, we may escalate the matter to legal action. This could involve issuing a County Court Claim Form and, if necessary, obtaining a County Court Judgment (CCJ) to enforce the debt.

4. How long does the pre-legal debt recovery process take?

The timeframe can vary depending on the complexity of the case and the debtor’s willingness to cooperate. For consumer debts, we typically follow a 30-day strategy, which includes three letters supplemented by telephone calls, emails, and SMS messages.

5. How is pre-legal debt recovery different for consumer and commercial debts?

For consumer debts, our 30-day strategy involves sending three letters supported by phone calls and SMS reminders. For commercial debts, we usually begin with a letter before action (LBA) and telephone calls, while claiming interest and compensation under late payment legislation.

6. Can you help gather information about debtors during the pre-legal process?

Yes, we can gather valuable information such as County Court Judgments, insolvency records, homeownership status, and employment details. This helps in assessing whether pursuing legal action is a viable option.

7. Why choose pre-legal collections over immediate legal action?

Pre-legal collections provide an opportunity to recover debts in a cost-effective manner, avoiding the expenses and time delays associated with legal proceedings. This process often leads to successful negotiations without the need to escalate to court action.

8. What if I have a mixture of consumer and commercial debts?

We can tailor a debt recovery strategy that suits your customer base, whether you’re dealing with consumer, commercial, or a combination of both. Our approach is designed to meet your specific requirements and maximise your chances of recovering the debt.

9. Can I track the progress of my cases during the pre-legal stage?

Yes, our online Debt Manager system allows you to view and download all correspondence related to your cases, providing full visibility and control throughout the pre-legal process.

10. How do I get started with pre-legal debt recovery?

If you’re ready to discuss your debt recovery needs or have any further questions, please feel free to contact our Business Development Team on 0330 024 6342. We’ll be happy to assist you in developing a tailored strategy for your business.

Get in Touch with Us

If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342

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