Debt Collection in the UK
When dealing with debt collection in the UK, customers in the UK are generally better payers compared to other European countries. However, unpaid invoices still occur. A regular debt collection agency in the UK cannot do much more than what you can do. That’s why you can count on Bierens for a successful business debt recovery in the UK. When collecting in the UK, our debt recovery lawyers and debt collectors can assist clients with business debt recovery starting from the amicable phase to complex legally disputed claims. Because we start on a No Win No Fee basis, we are the most cost-effective solution for cross-border cases.
Allow our debt collectors in the UK to recover your invoices
- Step 1: Uploading your case can be done within two minutes. All you have to do is enter your details, your debtor’s details and information regarding your unpaid invoice in the UK. You can also include any relevant documents here.
- Step 2: We start our investigation by checking international credit reports and local databases such as Companies House. This way we can understand why the invoice was not paid and define our strategy.
- Step 3: Your caseworker will send a demand letter, in which your debtor will be made aware of the outstanding amount and will be requested to pay.
- Step 4: Your caseworker will reach out to you to discuss the approach you wish to have. Moreover, you can track the status of your case 24/7 through our online portal.
- Step 5: If your debtor in the UK fails to respond to the demand letter, then we will contact your debtor by phone and in writing. We will personally speak with your debtor to avoid any miscommunication.
- Step 6: 95% of our cases are solved in the extrajudicial phase without court intervention. With the expertise of our native in-house specialists and the various resources that we have in store for your debtor, we can collect your claim. If your debtor refuses to pay or disputes the case, we can continue in the legal phase in consultation with you. Before doing so, we extensively discuss your options and costs. If you wish to proceed with taking legal action, we could, for example, send your debtor a letter before action, to formally commence legal proceedings.
Debt collectors in the UK
We have lawyers who are specialised in the laws of England and Wales. They know the legal system inside out and can help you recover your claim in the amicable phase and advise in the legal stage. With our contacts across the UK, we can have claims issued and enforced throughout England and Wales, Scotland, and Northern Ireland.
Free advice from the best debt collection specialists
Cost of debt recovery in the UK: No Win No Fee
The cost of debt recovery in the UK depends on whether your case is solved with or without court intervention. When solving your case in the extrajudicial phase, we work on a No Win No Fee basis. If you wish to proceed with legal intervention, then we will always discuss a fixed fee or hourly rate in advance. You can find a complete overview here.
Taking legal action: how does judicial debt collection in the UK work?
If collecting your claim in the amicable phase is unsuccessful, then we can take legal action in consultation with you. However, before doing so, we will first have to determine which court is applicable for your debt collection in the UK. It is worth noting that the UK consists of three different jurisdictions that have their own laws and procedures. As a result, there are different options for claims in England and Wales, Scotland and Northern Ireland
Debt collection procedures in England and Wales
Debt collection laws in England and Wales may differ compared to the laws in your country. There are specific procedures that can be initiated when dealing with debt collection in the UK. When initiating legal proceedings, the request must be submitted to the appropriate court depending on the value and complexity of your claim and where your debtor is located. There are several legal procedures that can be initiated, such as the Small Claims Procedure, Fast Track Procedure and Multi-track Procedure. If your case is successful following the procedure, then you will be granted judgement by the Court. After that, you will be able to enforce your judgment with the following options discussed below.
Debt collection enforcement in the UK
A bailiff in the UK, debt collection agent, sheriff or debt recovery solicitor?
Within the debt collection industry in the UK, there are several key players and differences in the actions they can perform. For example, there are two different bailiffs who have different degrees of power. These are known as County Court bailiffs and High Court enforcement officers. Once we have obtained a court order, the verdict will still have to be executed. With our contacts in the UK, the appropriate bailiff can be appointed and recover your payment by using one of the following enforcement procedures.
Third-party debt order
If you are in possession of a judgment, the third-party debt order can be used to freeze the debtor’s bank account and/or assets. The third party will be ordered to pay the debtor's money that is in their possession to satisfy the outstanding judgment.
A charging order allows a creditor to secure the judgment debt by imposing a charge over the debtor’s property, securities and other assets. This requires a Court application to be issued and for a Judge to make an order. This is a particularly useful form of debt collection enforcement when there is a substantial equity position in the asset.
The winding-up petition is a procedure that is also known as compulsory liquidation and can take up to 8 weeks. If your debtor refuses to pay, the court can order the compulsory liquidation of the company. Liquidators will then be appointed to distribute any surplus across creditors.
Why hire Bierens rather than a regular debt collection agency in the UK?
- Highest collection rate throughout the UK
- Extensive measures to recover your debt in the extrajudicial and judicial phase
- No Win No Fee debt collection in the UK
- Immediate action after uploading your claim
- 24/7 tracking of your case in our online portal
“Did you know that when dealing with debt collection in the UK, three different jurisdictions are involved? These include the laws in England and Wales, Scotland and Northern Ireland. The appropriate jurisdiction depends on where your debtor is located.”
Limitation period in the UK
Under the laws of England and Wales, money claims based on breach of contract have a limitation period of 6 years while claims under the law in Scotland have a limitation period of 5 years. This applies as soon as the invoice is due and payable, meaning that you can no longer take legal action against your debtor as it will become ‘time barred’.
There are some exceptions whereby different limitation periods apply. For example, for cases in the transport sector, 1 year is applicable instead. In some countries, limitation periods can be interrupted by sending a demand letter. Under the laws of England and Wales, the limitation period of invoices can be extended by a formal recognition of the outstanding amount or partial payment by the debtor.
Debt collection agencies in the UK
Whether you are dealing with simple debt recovery in the UK or a complex legal matter, our experts can help you throughout the UK in England and Wales, Scotland and Northern Ireland. You can visit our full overview here.
International debt collection in the UK
No matter where your debtor is located, our experts can help you with your international debt collection cases too. With over 115 experts from Europe’s leading economies, we have experts who can overcome language and cultural barriers and can explain the differences in debt collection regulations.
Start your debt collection in the UK today
Start your debt collection case in the UK today! While our UK Desk gets started on your case, you can resume your regular business operations. Upload your case for immediate action or contact our experts today.