Bindmans are able to provide bespoke debt recovery services to either new or existing clients.
Before the outset of your claim, we will seek to provide you with an estimate of the likely costs involved in your claim, based on the information known to us at that time. If any additional work is required or further complications arise that may have an impact on that estimate, we will inform you of these additional costs before further charges are incurred.
We usually charge for the work carried out on a case on an hourly rate, and according to the number of hours worked on the case.
The hourly rate charged varies according to the complexity of the case and the seniority of the solicitor handling it. Our hourly rates generally range from £200 – £250 per hour for a solicitor, £275 to £350 per hour for an associate solicitor, to £475 per hour for a partner.
Our fees in these matters typically start from £500 plus VAT upwards depending on the particular aspects of your claim, its value, and the complexities involved.
Conditional Fee Agreements
In some cases, we may be prepared to carry out your claim pursuant to a Conditional Fee Agreement, sometimes known as a ‘no-win, no-fee’ agreement. We will be able to advise you at the start of your matter as to whether such an arrangement is suitable for your claim. It is likely however, that you will still have to pay disbursements, such as barristers fees and court fees, even if we are able to conduct your matter under a Condition Fee Agreement
If we need to issue court proceedings on your behalf, you will have to pay court fees for issuing the claim. Court fees for the issue of debt proceedings will be 4.5% of the total sum claimed (if the claim is issued online) and 5% for a paper application, up to a maximum issue fee of £10,000 for any claim over £200,000. Other relevant court fees may include £255 for interim applications, £355 to issue possession proceedings, and £100 for a consent order. If the matter proceeds to a trial, you will also need to pay a hearing fee depending on the value of your claim.
You may also ask us to instruct a barrister to represent you at court, and the barrister’s fees will be charged in addition to our fees. We will notify you in advance what those fees will be, but much will depend on the nature of the case and the seniority of the barrister. There may also be other charges, such as courier charges, and process server fees to be paid.
Value Added Tax
Value Added Tax (VAT) is required to be added to our fees unless you are exempt. Court fees are not subject to VAT but most other disbursements do attract VAT, including barristers fees.
We will aim to draft our letter before action within seven days of receiving all necessary documents and information from you.
For a fully compliant pre-action protocol letter, the debtor has 30 days in which to respond, which can be extended up to 90 days in more complex matters. However, this may be able to be shortened upon our advice.
At the end of the 30-day period, we will inform you as to whether the debtor has made any payments, made any offers to settle, or has failed to make payment of the debt. At that stage, we can then discuss the next steps with you and the likely costs of the same.