Debt Collection Fees UK
Charges for debt collection in the UK will be laid out clearly by the debt collector you choose to engage with. With a wide variety of debts to collect - commercial, personal, CCJ enforcement and rent arrears to name a few, a variety of commercial agreements are required. The type of debt collection services required by a creditor can also impact the charges i.e debtor tracing, litigation, Possession Order enforcement or even selling a debt.
The 3 key ways a debt collection fee may be structured are explained in detail below. If you have any questions about the cost to you or the debtor your agency will be happy to explain “how much does debt recovery cost?”.
Table Of Debt Collection Charges
This is an itemised list of actions with corresponding costs. Actions undertaken by the debt collection agency can include - debtor communication, issuing a court claim, payment processing, Letter Before Action, Final Notice issuance, Late Payment reminders and debtor tracing are some of the actions required. Any questions around which charges apply to the process required for your debt collection should be asked such as “do I pay for bailiff fees?”.
Percentage Of Debt
This can be a percentage of the total debt including additional court fees, interest and admin fees. Confirm with your debt collection agencies which costs are negotiable. Payment terms need to be confirmed as some charges may be required before the debt is fully recovered.
No Win No Fee Debt Collection
This is the most popular option and is widely used by creditors because of the catchy tagline! However, you must review the terms and conditions. Admin fees, court fees and other charges may be applicable. Certain events that lead to an unrecovered debt may nullify this agreement and lead to charges i.e incorrect information provided by the creditor.
How much does debt collection cost?
Debt collection charges are applied to 3 different types of debt collection services:
Pre-Court
Post Court
Enforcement
This debt collection comparison service is QUICK, CLEAR and FREE. You could be comparing quotes from a trusted debt collection agency and recovery experts from across the UK in minutes. Speak to a debt collector today.
