The creditor specialises in housing disrepair assessment surveys. They work on behalf of claims companies and visit their potential clients to undertake assessments of neglect by the landlords of the property to establish the potential for claims.
Six invoices were issued to a North West-based claims company after the creditor completed six surveys over four weeks. Once the invoices began to fall overdue for payment, the creditor carried out their usual procedures sending copy invoices and statements and making telephone calls requesting payment. Calls and emails were always answered, and the debtor always apologised for the delay and promised that payment was imminent. This went on for three months before our client’s patience was exhausted, and we received their instruction to recover the debt.
Two Earlier Successful Debt Collections
This was the third time in four months that we had been instructed by the client. On the previous two occasions, also involving claims companies, we successfully recovered payment of the full debt and our fess within just a few days.
After checking the debtor company’s credit history and profile, we could see no reason why they continued to withhold payment of our client’s invoices of £3,432.00. The company was profitable, with an excellent credit rating and a healthy cash balance.
This was a similar situation to the two previous cases when we had successfully recovered payment on behalf of the client. The debtor had a good credit rating and could pay; they just didn’t want to pay. Neither would they want a County Court Judgment to be registered against them that would affect their credit rating. We were very confident that the threat of Court action would again result in payment within days.
The Threat of Court Action
We issued the debtor with a Notice by post to its registered and trading addresses along with sending copies to four email addresses. When we telephoned the debtor on day three of action, the accounts department advised that they were fully aware of our action and that payment of our client’s invoice was being dealt with as a matter of urgency.
On day four of our action, we received a same-day faster payment for the total invoice sums, plus late payment interest and the debt recovery costs claimed. Within 45 minutes of receiving the payment, the total invoice sums were transferred to our client, again via a same-day faster payment.
This case is a typical example of the majority of instructions we receive. The debtors could pay if they wanted to, but they simply would not. These situations can go on month after month if the creditor does not take action. The threat of legal action from a third party is usually enough to resolve the situation and prompt payment.
Free Debt Collection
The reason that many creditors put off taking action and instructing a debt collection is the cost. Many are unaware of their entitlement under late payment legislation to claim the debt collection costs from the debtor. When you instruct Advocate, we will claim the costs on your behalf, and you receive 100% of the money you are owed.