Debt and Money Advice

Debt and Money Advice:

All debt and money advice matters are handled by our principal – Rafique Ahmed. Having qualified in 2012, he has since dealt with a number of cases over the years with varying complexity.

Pursuing unpaid debts can be an exhausting and frustrating ordeal, often threatening the financial stability of you or your business. Swift and effective recovery is essential. At Raiyad Solicitors, we provide services for debt recovery on a fixed fee based on the value of the debt to recover.

SEEK AN AMICABLE RESOLUTION FIRST
Obviously, talking to your customer or client first of all to understand why payment has been delayed is a good idea as this is an opportunity to reach an amicable agreement and find an acceptable schedule of payment, without the need for further action. This is particularly important if you’re dealing with an important customer you hope to retain.

But if the relationship breaks down and you’re unable to reach a satisfactory agreement, we can step in to help you. You may want to consider mediation as a possible next step to avoid the hassle and expense of going to court to collect the debt.

HOW OUR DEBT RECOVERY SOLICITORS CAN SUPPORT YOU

Our expert debt recovery solicitors are equipped with the knowledge and experience to explore all available options, helping to resolve disputes and recover owed funds efficiently. We can assist by:

  • Sending formal solicitors’ letters to prompt payment.
  • Drafting or refining your terms and conditions of trade to prevent future issues.
  • Reviewing your current processes for dealing with late or non-payers.
  • Pursuing legal action when necessary.
  • Enforcing court judgments.
  • Issuing bankruptcy and winding-up orders.

With a proven track record of recovering bulk debt portfolios across various industries, we enable you to focus on running your business while we handle the challenging task of chasing payments.

By engaging us, you gain distinct advantages, such as increasing pressure on debtors when direct contact may be difficult or inappropriate for you. We also help diffuse uncomfortable situations, preserving your professional relationships and maintaining goodwill with your customers.

LEGAL COSTS
We are happy to discuss the potential costs of our services and will always provide clear guidance on the balance between the cost of debt recovery and the amount owed to you.

We will never take any action that incurs a cost to you without your prior approval, and we strive to keep expenses as low as possible. Additionally, certain costs can be recovered from the debtor, provided they settle the debt in full.

PERSONAL DEBT RECOVERY FOR INDIVIDUALS

If you’re owed money, Raiyad Solicitors’ expert debt collection team in London is here to help by:

  • Sending a letter before action.
  • Facilitating negotiation.
  • Offering mediation services.

We have a strong track record of securing payments for our clients without the need for court intervention. However, if the debt is contested and we’re unable to reach a resolution outside of court, we are fully prepared to take swift legal action, including:

  • Filing county court claims.
  • Enforcing judgments in county and high courts.
  • Initiating insolvency proceedings.
  • The earlier you contact us about your debt issue, the better the chances of recovering or collecting the money owed.

Court Claims
If the other party disputes the claim at any stage, we will review the situation, discuss any additional steps needed, and provide updated advice on costs. These may be based on a fixed fee or an hourly rate if more extensive work is required.

Fees
The fees for debt recovery is based on several factors, including the complexity of the case, the amount of debt involved, and the actions required. Please not e that we are not VAT registered and therefore, we do not charge any VAT. Our common fee structures include:

  1. Fixed Fees: For straightforward debt recovery cases, such as sending a letter before action or other standard actions, we charge a fixed fee of £350 – £500.
  2. Hourly Rates: For more complex cases, we charge by the hour. Hourly rates typically range from £139 to £312 per hour, depending on the solicitor’s experience.
  3. No Win, No Fee: We offer a “no win, no fee” arrangement, meaning you don’t pay unless we recover the debt. However, this typically applies to specific cases, and a percentage of the recovered debt may be taken as their fee subject to agreement.
  4. Percentage of the Debt Recovered: In some cases, we charge a percentage of the debt recovered. This can range from 5% to 15%, depending on the complexity of the case and how much work is involved.

It’s important to get a clear understanding of the fees upfront and ensure any additional costs, such as court fees or enforcement costs, are also discussed.

Our fee includes:

  • Taking your instructions and reviewing documentation.
  • Undertaking appropriate searches.
  • Sending a letter before action.
  • Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim.
  • Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default.
  • When Judgement in default in received, write to the other side to request payment.
  • If payment is not received within 14 days, providing you with advice on next steps and likely costs.

Matters usually take 4 weeks – 26 weeks depend on the claim from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.