Are Debt Recovery Solicitors Worth It? | Expert Advice

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Are Debt Recovery Solicitors Worth It? | Expert Advice

Thousands of businesses and individuals in the United Kingdom experience money being owed every year.

This is sadly an issue that cannot be easily avoided and when this happens, action should be taken.

Failing to take action when recovering debts could damage cash flow and threaten the longevity of your business.

Cash flow is one of the most important assets in any business and needs to remain stable to thrive.

When an individual is owed money, there are generally three choices that can be made:

• Attempting to recover the money by themselves.
• Court action by way of contacting debt recovery solicitors.
• Instructing a professional debt collection agency.

Whilst recovering a debt alone is a common choice, it is the most difficult one of the three.

This is due to the amount of time, money and resources it costs to recover this alone.

Small business owners or the self-employed will be affected by this more, as they will have limited resources.

The time that will be wasted by attempting to recover this alone should be used to benefit and grow the business.

As a result, it is clear that there are two main options left to perform debt recovery services.

Although debt solicitors and law firms provide a service that has been used for hundreds of years, are they worth it?

We have put together this debt advice to assist you in making the right debt choice when it comes to debt collection.

Debt Recovery Solicitors Vs Using A Collection Agency

It is no secret that taking the legal route of debt collection has been extremely popular in the past.

This is due to the large number of Legal 500 law firms that have made their home in Scotland, England and Wales.

Choosing legal action involves taking the debtor to court via a debt collection solicitor.

Firms that are authorised and regulated by the solicitors regulation authority are known to be effective.

Despite the effectiveness of debt recovery lawyers, there are various aspects to take into consideration prior to instruction.

Firstly, debt recovery solicitors are notorious for charging a lot of money to use their debt collection services.

Rather than charging a fixed fee for the service, some can charge up to £200 per hour.

This may seem reasonable considering their time is precious, however, it is not cost effective for most.

Secondly, it can take a very long time to produce a result due to the processing in the court system.

As the length of time increases, so does the cost of using a solicitor to recover the debt.

This could lead the business to ‘write-off’ the debt due to the cost outweighing the debt amount.

In summary, using a debt recovery solicitor to collect your unpaid fees is a costly and timely exercise.

Using a collection agency is by far the most effective debt management service that can provide both legal advice and results.

Choosing A Debt Collection Agency Over A Debt Solicitor

At Debt Collection Nottingham, we provide our clients with the easiest way to find the right agencies.

Regardless of whether you have business debts or personal debts, we can provide you with a solution.

Our partners provide a far more affordable service than that of solicitors, with industry leading results.

They are careful to not jeopardise any existing relationships by providing a professional service.

Our recommended commercial debt collection agency is Federal Management.

They have recovered millions of pounds worth of business debts for their clients yearly since 2004.

Also, they are authorised and regulated by the Financial Conduct Authority (FCA) to recover debts under the Consumer Credit Act.

Alternatively, we recommend Frontline Collections for the recovery of debts owed by individuals.

Across their long history, they have quickly become the UK’s leading private debt collection agency.

Both of the above ensure peace of mind by providing FREE pre-action risk analysis of your debts.

Debt Collection Nottingham – Frequently Asked Questions