Having found yourself in the position where you’re owed money from an individual or a business, the idea of having to shell out in order to try and get that money back can seem a little unappealing.
But is it worth it?
That’s up to you, but one thing’s for sure...
...you’re a lot more likely to recoup the money when using a company like Court Enforcement Specialists.
There are fees involved, but most of these are recoverable from the debtor.
It’s just a matter of patience.
The [Taking Control of Goods (Fees) Regulations 2014] regulates the fees charged by High Court Enforcement Officers to people on each side of the judgement, so at least you can give yourself a very clear idea of what the charges are going to be.
For the creditor, or judgement creditor to give them their proper name, the initial fee is limited to £75.00 + VAT for each Notice of Enforcement sent to the judgement debtor.
The number of Notices sent to the debtor depends entirely on the quality of information that the enforcement company has on them. The more accurate the detail, the less Notices need to be sent and the lower the cost.
Finding the most appropriate address is crucial.
On top of this, the judgement creditor is also responsible for the £66.00 Court fee in order to issue the Writ of Control.
All told, you’re looking at a fee of £156.00 for any judgement that is sent to a company like ours.
When you’re looking to recover sums of money that amount to considerably more than this, it’s a pretty good investment, especially when you consider that this money is recoupable from the debtor, once their repayment has been agreed.
Interest, costs and commission do apply, but this should only serve to further encourage the debtor to get a move on.
The fees charged by HCEOs are outlined in 4 stages...
1. Compliance - £75 + VAT for any judgement that is passed to a HCEO for enforcement. This comes along with costs, commission and interest, and is added to the judgement debt, payable by the judgement debtor. The only time when the creditor foots the bill in the long run, is when the debt cannot be recovered from the debtor, and that’s our job.
2. First Stage Enforcement – With a fixed fee and a commission fee, this money is added to the judgement debt on our attendance to the judgement debtor’s address under a Writ of Control. Should the debtor pay at this stage, the fees won’t go any further than compliance and Stage 1.
3. Second Stage Enforcement – Should the judgement debtor refuse payment at the time of the visit, or refuse to set up a payment plan, an additional fee is set. This is where the charges can build for the debtor and it really is in their best interests to have paid or agreed to pay before this stage.
4. Sale or Disposal Stage – 15% commission on the judgement debt to be paid to the HCEO can be a large sum of money for a person or business already in debt, but this is what happens when the payment isn’t achieved or agreed. We’re talking about things like forced auction here, as well as the potentially expensive costs of the removal of good such as cars etc. This is when it’s time to pull out all the stops for HCEOs essentially, time to step things up when the judgement debtor isn’t playing ball.
As with most things in life, there are of course exceptions to the rules, but to summarise we would always say...
To creditors – We have your best interests at heart. The vast majority of the money you spend on our services is recoupable from the debtor. Your investment is not just in getting your money back, it is in our expertise, experience and capabilities.
To debtors – Wherever possible, pay as early as you can to keep your costs down. As listed above, with delays and disruption, things can get expensive. Help and support is available.
Please check our website for useful telephone numbers and contact details of charities and support agencies.
Finally, for any further details on the cost of enforcement, or for our exact pricing details, don’t hesitate to get in touch.
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