What's the difference?
PreLegal debt recovery involves Lovetts senior Collection Managers pursuing your debtors by letters and telephone calls. This service based around a commission, apart from a small registration fee on overseas debts.
Your alternative is to "go legal" straight away. Before we can issue a Claim it is advisable to issue a Letter Before Action or a Late Payment Demand threatening legal proceedings so that court costs are unlikely to be challenged. Your own Final Demand may be sufficient notice to the debtor to satisfy the court. If the debt is not paid, with your agreement we comment court proceedings 7 days later. Our solicitors fees and disbursements are payable win or lse, and are mostly recoverable from the debtor when he pays. Legal claims give you the opportunity to recover interest, either contractual or statutory, and compensation where allowable. This can often lead to a profit by recovering more than the costs of running the case when successful.
Which should you use?
Legal collections are usually the most cost-effective method of recovery when you have debtors in the UK who you know have the assets to pay, and are either "late payers" or are not taking you seriously when you ask for payment.
PreLegal is best where:
- You prefer not to take the risk on legal costs, perhaps because of the size of the debt, lack of knowledge about the debtor, you no longer know where they are, or there is a known dispute.
- You are collecting debts abroad
- You regard the chances of recovery as uncertain
- Where an LBA has not been responded to and you don't wish to issue proceedings.
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