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Costs in Debt Recovery Claims

The Solicitors Regulation Authority requires solicitors to provide detailed information as to the costs of certain services via our website. For businesses this includes debt recovery up to a value of £100,000.

The information we provide is either the average cost of the work or a range of costs, usually based on hourly rates, and any likely third-party payments (known as “disbursements”) for example to HM Courts and Tribunal Services which we re-charge to you in our bill.

We also provide information about the solicitors and other fee earners who will work on this type of matter, their qualifications and experience.

The costs information provided is based on our experience of typical transactions or cases. The actual charges may vary, for example, if your case is more or less complex than the norm. We will give you a cost estimate at the outset, taking into account the actual circumstances of your case. We will also update the estimate if complications arise.

The cost of debt recovery services for cases with a value up to £200,000

Our fees are based on the number of hours we spend on the matter multiplied by the hourly rates for the fee earner doing the work.

All fees are expressed exclusive of VAT which in most cases will be payable in addition at the standard rate of 20%

Our fees and disbursements for this work are based on the number of hours we take multiplied by the hourly rates for the fee earner doing the work.

Taking your instructions, reviewing any relevant documents and advising you about your claim: 3-4 hours at £290 per hour: £870- £1,405;
Carrying out relevant searches, for example at Companies House: 1 – 2 hours at £290 per hour: £290 – £825;
Drafting and sending a letter before action: 2 – 4 hours at £290 per hour: £580 – £1,405;
If the claim is not paid, drafting and issuing a claim form and particulars of claim: 3-4 hours at £290 per hour: £870- £1,405;
Where no acknowledgment of service or defence is received, or where the debtor fully admits the debt, applying to the court to enter judgment : 1 – 2 hours at £290 per hour: £290 – £825;
On receipt of judgment in default or following a full admission, writing to the other side and demanding payment on your behalf: 1 hour at £290 per hour;
If payment is not received, providing you with advice on next steps and the likely cost of those steps: 1 – 2 hours at £275 per hour: £290 – £825.

The above fee estimates are based on the hourly rate for a solicitor with 4-5 year’s post qualification experience. All work is done under the supervision of a partner with an hourly rate of £490, and the higher range figure above includes an estimated 30 minutes of partner time.

In some case it may be necessary to instruct a barrister (“Counsel”). Counsel’s fees vary subject to their experience and the complexity of the matter. Junior Counsel’s fees are likely to be in the region of £1,500 – £5,000. We will always obtain your approval before incurring Counsel’s fees.

Claim Amount	Fees
Up to £300	£35
£300.01 to £500	£50
£500.01 to £1,000	£70
£1,000.01 to £1,500	£80
£1,500.01 to £3,000	£115
£3,000.01 to £5,000	£205
£5,000.01 to £10,000	£455
£10,000.01 to £200,000	5% of the claim

More information about Court and tribunal fees can be found here.

All fees and disbursements are expressed exclusive of VAT which in most cases will be payable in addition at the standard rate of 20%.

There are limits on the amount of costs (and VAT) that you can recover from your debtor which may be less than our fees. In some circumstances you may become liable for the debtor’s legal fees

Who to Contact

NIGEL ADAMS

Head Of Dispute Resolution

Nigel Adams, a Partner at Druces and head of our Dispute Resolution team . Nigel is a solicitor qualified in England & Wales, with over 25 years post qualification experience in dispute resolution and litigation. Nigel’s hourly rate is £490 per hour.

Terri Hattersley

Associate, Dispute Resolution

Terri is an Associate with Druces’ Dispute Resolution team. Terri is a solicitor qualified in England & Wales, with over 4 years post qualification experience in dispute resolution and litigation. Terri’s hourly rate is £290 per hour.