Debt Collection United Kingdom

Debt Collection United Kingdom

Is your company looking for a debt collection agency in the UK because you have a debtor who refuses to pay your invoice? Our international debt recovery collection specialists and lawyers will be happy to help you. We ensure that your outstanding invoices are paid quickly. Read here what we can do for you when you want to hire a collection agency for successful debt recovery in the UK.

"Debt collection in the UK differs from the collection in other European countries. Following Brexit, it remains unclear as to what impact this will have on trade between European countries and the UK. Debt recovery in the UK will also change, however, this will not have any effect until 2021″.

Submit your case before 16.00 pm and we will act today!

International debt collection in the UK

When doing dealing with international debt recovery in the UK, you will be confronted with different trading traditions and customs than those you are used to. In addition, different debt recovery procedures in the UK apply. This often makes debt collection in the UK complicated and time-consuming. That is why you can rely on our debt recovery agency in the UK.

Payment behaviour of British companies

  • Most companies have a payment term of 30 days
  • The payment behaviour in the UK is relatively good
  • A payment term of 14 days is customary in the case of reminders

Debt collection in the UK

Most companies in the UK pay within 30 days. Approximately 1/3rd of companies do not pay their invoices on time. Only 2.5% of companies in the UK pay after 90 days. In most cases, small businesses are better payers than multinationals. Furthermore, debtors in the UK are more likely to pay when a debt collection lawyer is involved than a debt collection agency. When your client is approached by a lawyer, they will feel pressurised to pay, which will increase the chances of payment considerably. Our debt recovery lawyers in the UK will do everything in their power to ensure that you retrieve your claim.

Advantages of debt collection in the UK

  • British collection lawyers in your country
  • English-speaking lawyers
  • Highest success rates
  • Collection throughout the UK
  • Always a single point of contact
  • 24/7 online access to our portal
  • No Cure No Pay debt collection

Debt recovery lawyer in your country

It is best to contact a British lawyer or debt collection specialist for successful debt recovery in the UK. Our debt collection lawyers have extensive knowledge and experience with debt recovery procedures in the UK. This way we can make your debtor pay quickly.

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  • Information about a large variety of EU countries
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  • Covering European order for Payment Proceedings

Debt recovery procedure in the UK

The debt recovery procedure in the UK can be divided into two phases. In the extrajudicial phase, we collect without the intervention of the court, in the judicial phase we do involve the court to get your UK debtor to pay. Because we are a law firm, we can assist you in both phases.

Extrajudicial debt collection in the UK

Prelegal debt collection
Our starting point is to always start the collection procedure in the extrajudicial phase. In this phase, we try to avoid the intervention of the court. We contact your debtor in the UK to ensure that your debtor still pays. In the extrajudicial phase we have the following options in the UK:

Written demand letters and phone calls

We send the debtor a written demand letter and contact them by telephone, requesting that they pay your claim within a few days, together with interest and costs. In specific cases, we may also talk to your debtor face to face.

Reaching a settlement

Our lawyers will use their knowledge of the local business culture and regulations to reach a settlement with your debtor. Reaching a settlement is a very popular means of getting your client to pay in the UK. It can also be used during or after legal proceedings.

Announcing legal proceedings

Often, with the announcement of legal proceedings, we will convince your UK debtor to pay. This can be done by, for example, announcing a bankruptcy petition. However, filing for bankruptcy in the UK is not very fast or cheap. In England and Wales, it takes at least three weeks and it can easily last several months. We therefore only recommend this means of collection for specific cases.

If your debtor refuses to pay in the extrajudicial phase, we can go to court in consultation with you. We will perform a credit check and analyse your debtor's financial situation. This enables us to better assess your debtor's finances and determine whether legal proceedings are worthwhile. In addition, we will always let you know in advance what the possible costs are, and we will only start working after receiving your permission.

Debt recovery legislation in the UK

justice

Would you like to initiate legal debt recovery procedures? If so, then the first question is in which country should you litigate, in your country or in the UK? This depends on the competent court, i.e. the court that is competent to rule on your debt collection case.

In your general terms and conditions, you can make agreements about the competent court in the event of a (payment) conflict. This is also known as choice of forum. Have no agreements been made? Then the court in the country of the defendant has jurisdiction. In this case the British court. You will then have to follow legal proceedings in the UK.

Furthermore, the main rule is that the law of the country of the seller or service provider applies. In this case, the law of your country applies. We then get this difficult situation where the court in the UK must judge the case based on the law of your country. A legal system he is unfamiliar with. This is not a desirable situation, which is why our advice is to make agreements about this in your general terms and conditions. In addition, you can also agree that you can litigate in your own country in the case of a conflict.

Debt collection laws in the UK

When we take legal action to solve your debt collection in the UK, our lawyers deploy specific debt recovery procedures in the UK. The best debt collection procedure varies per situation. Our lawyers always look for the best option for your debt collection case. Below you will find the most important legal procedures of the legal system of England and Wales:

Small claims track

In England and Wales, claims below £10,000.00 are processed under the small claim procedure. This procedure is one of the most cost-effective solutions. However, the costs of these proceedings are almost never fully imposed on the losing party.

Fast track

The fast track procedure deals with undisputed cases with a value between £10,000.00 and £25,000.00. As these proceedings often take more time to process than the small claims track, the costs of this procedure are often (partly) passed on to the losing party. This is decided by the court.

Multi- track

For complex or disputed claims above £25,000.00, the multi track procedure should be followed. On average, these procedures take longer than small claims and fast track procedures. In this procedure, the judge can also decide that the losing party must pay all legal costs.

Winding Up petition

The winding up petition can be initiated for claims with a value of more than  £750. This procedure is also known as compulsory liquidation. If your debtor refuses to pay, then the court can order your debtor's assets to be collected and distributed among the stakeholders.

International collection laws

international collection laws

In addition to the debt recovery procedure in the UK, there are also a few European measures that can be used if you have a debt collection in the UK. It is important for the European Union that trade between European countries is stimulated. Therefore, complicated procedures are unwanted. That is why there are two alternative procedures that can be used for foreign claims between two EU countries: the European Payment Order Procedure and the Small Claims Procedure.

Both procedures are relatively fast and inexpensive. A standard form must be filled in, which is then sent to the competent court. If no agreements have been made, then this is the British court. The court then solves the debt recovery case.

The Small Claims procedure is only suitable for claims up to €5,000. The European Payment Order only applies to undisputed claims.

Because the concrete consequences of Brexit are unknown, it is unclear whether these European laws will remain valid in the UK. Our lawyers will be happy to tell you more about the possibilities as they change.

Debt collection procedure in the UK

  • Upload claim
    Upload your debt recovery case online
  • Start case
    We will process your case immediately
  • Send a demand letter
    We will immediately send a payment reminder to your debtor
  • How to approach debtor?
    Together we will determine our approach
  • Online portal 24/7
    View your case 24/7 through our online portal
  • Ask questions
    Questions? Your contact is always available to assist you
  • Get invoice paid
    Your unpaid invoice will be paid

Litigation in your own country

Have you agreed in the general terms and conditions that the court in your country has jurisdiction? Then legal proceedings can also be started in your country. Depending on your specific situation, our lawyers will look at what is most beneficial for your organisation. If we start legal proceedings in your country against your British debtor, we can start ordinary civil proceedings. Both parties will be heard, after which the court will make a judgment.

Executing judgments in the UK

If a verdict has been obtained in your country against a British debtor, it has yet to be executed in the UK. Within the EU, it is established that all verdicts obtained in the EU member states are also recognised in other EU countries. Now that the UK has left the EU, it is unclear what this means for the execution of foreign judgments. Please contact us for the most up to date information on this subject.

Limitation period in the UK

limitation period

In England and Wales, business claims are generally subject to a limitation period of 6 years. This period starts from the moment the claim arises. The invoice date is not relevant here, but the date on which you became aware of the claim.

Imagine you are building a structure for a customer. The building was completed and delivered on 1 February. The limitation period is then 1 February. If you subsequently send an invoice on 1 March with an end date of 31 March, this does not affect the limitation period. The limitation period starts on 1 February and not on 31 March, as is the case in many European countries.

Exceptions to the limitation period

The limitation period of 6 years applies to normal claims. Please note that the limitation period is different for some claims. For example, in the case of personal injury there is a limitation period of 3 years and for some property claims a limitation period of up to 12 years applies.

Preventing the statute of limitations

You can avoid your invoice becoming time-barred by interrupting the limitation period. By interruption, the limitation period is stopped and starts to run again. In the United Kingdom the limitation period can be interrupted when a standstill agreement is concluded between the two parties. In addition, a payment or acknowledgement of the debt by the debtor can cause the limitation period to be reinstated. It is important that this acknowledgement is in writing and signed by the responsible party.

Once the limitation period has expired, you can no longer take action. It is therefore worth keeping a close eye on the limitation period and interruption before it expires.

Legal areas for debt collection in the UK

Our debt collection agency in the Uk has been active for several years. During this time, we have helped many companies all over the world with their debt collection business in the UK with all kinds of debt collection cases in various jurisdictions:

  • Transport
  • Buying and Selling
  • Construction law
  • Rental and leasing
  • Agency and distribution agreements
  • Damages and unlawful acts

“Bierens is a highly effective and professional partner. Not only do they have a good debt collection procedure, they also give solid advice.”

Manuel Maas, Eneco

National coverage

Is your debtor in London, Glasgow, or Birmingham? For our specialists, it doesn't matter where your customer is located. We can assist you throughout the United Kingdom. You can simply transfer your case online to our debt collection agency in the UK. Our debt collection specialists will then get straight to work.

More than a debt collection agency in the UK

If you are looking for a debt collection agency in the UK, you are in a much stronger position with a debt collection lawyer. Our British debt collection lawyers have more resources than a regular collection agency. Moreover, they work faster and are also more successful.

Submit your case before 16.00 pm and we will act today!

No Win No Fee debt collection

no cure no pay

During the extrajudicial phase in our debt recovery in the UK, we work based on the No Win, No Fee principle. If we do not collect, then you pay no legal fee. You only pay €150 for administrative costs. After all, an unpaid invoice causes enough frustration. We think it would be unfair if you were to be faced with all sorts of additional fees.

You only pay a fee if we can collect the claim. We try to recover this fee from the debtor as much as possible. Therefore, a successful collection case will cost you almost nothing!

Debt collection costs

If the collection is successful, we try to recover the collection costs from the debtor as much as possible. In that case, your British customer will pay the outstanding invoice and the collection costs. This way, you will pay little to no collection fees to our organisation.

Our British specialists

Do you have an outstanding invoice and are you looking for a debt collection agency in the UK? Or do you have another payment conflict with your client? Our collection specialists and lawyers will be happy to help you solve your payment conflict.

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