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OFT - Debt Collection Guidance
1 – OBTAINING YOUR MONEY WITHOUT RECOURSE TO LEGAL ACTION
WHAT IS A `LETTER BEFORE ACTION?’
DO I HAVE TO SEND A LETTER BEFORE ACTION? CAN I JUST GO STRAIGHT TO COURT
ACTION (CLAIM) WITHOUT SENDING ONE?
DO I NEED TO NOTIFY YOU IF I HAVE BEEN PAID ON A LETTER BEFORE ACTION?
WHAT IF PRMS LTD RECEIVES A RESPONSE TO THE LETTER BEFORE ACTION?
DO I HAVE TO NOTIFY YOU TO CLOSE YOUR FILE IF THE MATTER IS FINALIZED
AT THE LETTER BEFORE ACTION STAGE?
IS IT POSSIBLE THAT YOU COULD ISSUE PROCEEDINGS WITHOUT CONSULTING ME?
I DO NOT YET HAVE A CLIENT REFERENCE NUMBER. CAN I STILL INSTRUCT YOU
TO ISSUE A LETTER BEFORE ACTION?
I AM ACTING ON BEHALF OF MORE THAN ONE COMPANY. DO I NEED A CLIENT REFERENCE
NUMBER FOR EACH COMPANY I REPRESENT?
2 – ISSUING A CLAIM (LEGAL ACTION)
WHAT IF I AM NOT HAPPY WITH THE RESULT AND I WANT TO TAKE COURT ACTION?
ONLINE ACTION FORM
1. THE STATUS OF THE DEFENDANT
2. A BREAKDOWN OF THE DEBT
NOTES FOR GUIDANCE WHEN ISSUING COURT ACTION (CLAIM) 7
1. WRITTEN INSTRUCTIONS
2. CHECK YOUR FILES
3. SUING THE CORRECT DEFENDANT
4. INVOICE DETAILS
5. LIMITED COMPANIES REGISTERED NO.
6. PROVIDING INITIALS OF INDIVIDUALS
7. DISHONOURED CHEQUES
8. WHEN YOUR CASE IS NOT STRAIGHTFORWARD
9. WHAT IS YOUR COMPANY’S CORRECT NAME?
10. CANCELLING INSTRUCTIONS FOR COURT ACTION
11. THE ARBITRATION ACT 1996
12. STATEMENT OF TRUTH
13. SCOTLAND & NORTHERN IRELAND
WHAT IS A STATEMENT OF TRUTH AND HOW DOES IT AFFECT MY CASE?
FALSE STATEMENTS
WHAT IF A DEFENCE IS FILED?
THE IMPORTANCE OF THE SMALL CLAIMS TRACK
WHAT HAPPENS AFTER WE HAVE ISSUED COURT ACTION FOR YOU?
WHAT IF THE DEFENDANT IS PLAYING FOR TIME?
HOW WE KEEP YOU FULLY INFORMED
PAYMENTS TO YOU AFTER ISSUE
CHEQUES MADE PAYABLE TO US
FULL AND FINAL SETTLEMENT
WHAT HAPPENS NEXT?
IF YOU HAVE ANY QUERIES
3 – ENFORCING JUDGEMENT
VERY IMPORTANT INFORMATION CONCERNING CLAIMS, JUDGMENTS & EXECUTION
ENTERING JUDGMENT AND METHODS OF EXECUTION
THE IMPORTANT THINGS TO REMEMBER AT THIS STAGE:
COUNTY COURT JUDGMENTS
THE DEFENDANT HAS CONTACTED ME WITH AN OFFER OF PAYMENT, ALTHOUGH I HAVE
INSTRUCTED THE HIGH COURT ENFORCEMENT OFFICER TO RECOVER MY DEBTS. SHOULD
I ACCEPT THE PAYMENT?
ACTIONS WHERE THE HIGH COURT ENFORCEMENT OFFICER IS INSTRUCTED
ACTIONS WHERE THE COUNTY COURT BAILIFF IS INSTRUCTED
HOW LONG DOES IT TAKE?
THE RISKS OF EXECUTION
4 – HELP AND ADVICE
HELP US TO HELP YOU
IF YOU HAVE ANY QUERIES
1 – OBTAINING YOUR MONEY WITHOUT RECOURSE TO LEGAL ACTION
WHAT IS A `LETTER BEFORE ACTION?’
A `Letter Before Action’ is exactly what it says. It is a letter
sent by us on your behalf, notifying the other party of the intention
to take legal action. It is made very clear that unless the issue is resolved,
court proceedings will result.
An important part of the Letter Before Action is to ensure that costs
are not awarded against you. It’s very easy to get stuck with unexpected
legal bills when your ‘debtor’ points out to the judge that
they would have paid up if only they had been formally warned that a court
case might result. A Letter Before Action is also a lot less expensive
than solicitors and court costs.
Another reason to issue a Letter Before Action is that in more than 80%
of cases, it is often effective at convincing the other party to come
to an agreement.
DO I HAVE TO SEND A LETTER BEFORE ACTION? CAN I JUST GO STRAIGHT TO COURT
ACTION (CLAIM) WITHOUT SENDING ONE?
If you do not send a Letter Before Action you put yourself at a serious
disadvantage if the Defendant takes issue with you on the question of
costs. The Court takes the view that in most cases the proper course of
action is to give a warning before issuing proceedings. If the Defendant
claims that they would have paid if they had received a Solicitors letter,
then in 99 cases out of 100 they will escape having to pay the costs and
you will have to bear them.
No matter how many letters or reminders and even threats of legal action you may have sent, the Court takes the view that the Defendant is entitled to a Solicitors letter giving them notice of intention to start legal proceedings. The Court’s viewpoint is there is then clearly no doubt in the Defendants mind as to what the next step will be. If one of your letters, or a letter from a Debt Collection Agency, threatens legal proceedings, the Court does not consider this the same if the matter of costs becomes an issue.
A seven-day letter is by far the best Letter Before Action to send. We can send a three day letter for you, but you run the risk here of difficulties if the Defendant’s cheque crosses with the letter in the post (even if the Defendant sends it second class) and proceedings are issued and costs become an issue.
As stated previously, it is far better to send a Letter Before Action as in almost every case; it has a success rate in excess of 8O%.
There are clearly occasions when time is critical and the decision to issue proceedings far outweighs any consideration with reference to the recovery of costs. If, for example, you are owed several thousand pounds and you have concerns over the financial status of the defendant, or you are concerned that you want to get priority of a Warrant of Execution (i.e. an order requesting that the High Court Enforcement Officer visit the debtors premises in order to seize goods to the value of the debt) ahead of other creditors, then in such circumstances speed and not the issue of costs, would dictate what decision to make with regard to whether or not you send a Letter Before Action.DO I NEED TO NOTIFY YOU IF I HAVE BEEN PAID ON A LETTER BEFORE ACTION?
Yes. Please inform us if you have been paid after we have sent the Letter Before Action - we need to know. There is always a need to come back to us about a Letter Before Action, so that we can update our files.
WHAT IF PRMS LTD RECEIVES A RESPONSE TO THE LETTER BEFORE ACTION?
Any cheques, correspondence or telephone messages received by us will be notified to you online the same day, and sent onto you by first class post the next working day after we receive them. You will receive a copy of everything that we obtain in response to the Letter Before Action.
DO I HAVE TO NOTIFY YOU TO CLOSE YOUR FILE IF THE MATTER IS FINALIZED AT THE LETTER BEFORE ACTION STAGE?
Yes. We will await instructions from you with regards to closing the file. If there is nothing further to do and you are happy with the result, then simply tell us in writing.
IS IT POSSIBLE THAT YOU COULD ISSUE PROCEEDINGS WITHOUT CONSULTING ME?
No. We will only issue proceedings upon receipt of the Action Sheet, completed and signed by you or your nominated representative. We will never issue Court Action (Claim) without your written instructions. We do not take any telephone instructions for the issue of Court proceedings. All instructions for the issue of Court proceedings must be on the Action Sheet, duly completed and signed by you. If you are busy, on holiday or away from the office you can rest assured in the knowledge that no Court proceedings will be instituted without your signature on the Action Sheet or online instructions.
I DO NOT YET HAVE A CLIENT REFERENCE NUMBER. CAN I STILL INSTRUCT YOU TO ISSUE A LETTER BEFORE ACTION?
Yes. You will receive your own unique Client Reference Number once you have provided us with your Company name and address, telephone number and contact name. Please always quote this unique reference on all your correspondence.
If your debt is not a straightforward Business-to-Business transaction i.e. it is against an individual as opposed to a company, please do make sure to let us know before you instruct us.
I AM ACTING ON BEHALF OF MORE THAN ONE COMPANY. DO I NEED A CLIENT REFERENCE NUMBER FOR EACH COMPANY I REPRESENT?
Yes. If you are instructing us on behalf of more than one Company, please always make sure that the correct Client Reference Number is quoted for each Company - this is absolutely vital.
2 – ISSUING A CLAIM (LEGAL ACTION)
WHAT IF I AM NOT HAPPY WITH THE RESULT AND I WANT TO TAKE COURT ACTION?
When the defendant’s time, as stated in the Letter Before Action, has expired, you will receive an “Action Sheet” from us. You may already have been paid; in which case you should do nothing with the Action Sheet, just let us know if the matter has been settled and we can close the file. If there are some matters upon which you have not been paid and you wish to issue Court Action (Claim) then you simply fill in the appropriate details on the Action Sheet for the defendant or debtor(s), sign it and fax or post it back to us
ONLINE ACTION FORM
As stated above, we will not issue Court proceedings (Claims) without your written/online instructions. When we are issuing Court proceedings, we will already have the name and address of the defendant and the amount of the debt, which you will have provided at the Letter Before Action stage. At the “Action” stage we require further information as noted below:
1. 1. THE STATUS OF THE DEFENDANT
That is whether the defendant is a Limited Company, a firm or partnership, or an individual trading as a business name. In the case of an individual, we need to know whether the individual is male or female and we must have the individual’s initial, even if you do not know their full name. We cannot issue on just the surname when we are suing an individual.
2. 2. A BREAKDOWN OF THE DEBT
We need to know the invoice numbers and invoice dates for all amounts that make up the total debt. If there are any credits these need to be shown and you need to indicate the date that each invoice was due.
It is absolutely vital at this stage that the information you give us is totally accurate.
Even a misspelling of the defendants name or address, or the lack of the full proper name or status can frustrate the entire proceedings and it can cause a waste of time and money and can often give the defendant a right to claim costs against you. It cannot be stressed highly enough how important it is to get all the information accurate at the time when proceedings are issued.
There are notes for guidance listed below .You should consult these if you are in any doubt as to what you should do and if you have any further queries please do not hesitate to contact our offices.
Two things in particular you should take great care of:
A. If you are suing on a dishonoured cheque please read the `Notes for Guidance’ below.
B. If you are suing for something unusual, which is not covered by the statement: “Goods and services sold and delivered” then you must inform us of what it is you are suing for. This is vital and failure to inform us could completely de-rail your action and cause you considerable prejudice in recovering your money. Please note, when we issue Court Actions (Claims), we claim interest at the current statutory rate on all monies owed to you. On rare occasions, the total of the debt and interest can move your Claim into the next band. However, on successful recovery of the debt, it is the defendant who pays these fees. County Court Fees
NOTES FOR GUIDANCE WHEN ISSUING COURT ACTION (CLAIM)
We need your written instructions for Court Actions (Claims) by 3:30pm (GMT) each day as they are issued online each afternoon.
1. 1. WRITTEN INSTRUCTIONS
As protection for you, we only take Court Action when we receive written confirmation from you by email or post.
2. CHECK YOUR FILES
The “Action Sheet” is sent to you automatically as a reminder concerning a defendant to whom a solicitor’s letter has been sent. If you intend to proceed to Court Action, you must check your file to ascertain if there has been any correspondence, telephone messages or payments, which have been sent from us (or the defendant directly), which would require your consideration before deciding whether or not to commence proceedings.
3. SUING THE CORRECT DEFENDANT
You must check your files for the correct details of who to sue and the following pointers should assist:
• Who ordered the goods or services from you?
• Did you receive a written order?
• Who did you invoice?
• Do you have a copy of the defendant’s stationery or any other documentation from the defendant? You must establish the exact name of the defendant and whether the defendant is an individual, a partnership i.e. “a firm” or Limited Company. The distinction is absolutely vital to the success of the proceedings and a mistake will not only mean you cannot recover any fixed costs from the defendant but also that you may be ordered by the Court to pay the defendants legal costs which may be substantial.
4. 4. INVOICE DETAILS
We must provide the date of the invoice(s) and the correct amount. It is an enormous advantage for you as well to quote the invoice numbers as this can help prevent delaying tactics by the defendant. If these are numerous and there are credit notes involved as well, you can draw up a schedule to fax with the Court Action form and we will then incorporate the whole of the schedule in a specially adapted Claim Form.
5. 5. LIMITED COMPANIES REGISTERED NO.
If you have the registered number or registered office of a Limited Company, it is of great assistance if you can forward these to us. It is not unknown for some Limited Companies to simply show their trading name on their letterhead. By searching against the registered number, this should help to establish their full/correct name.
6. 6. PROVIDING INITIALS OF INDIVIDUALS
When you are suing an individual, a man or a woman as opposed to a firm or a Limited Company, it is essential that you provide their initials, surname and gender. The Court will not issue the proceedings without the initials and surname of the individual.
7. 7. DISHONOURED CHEQUES
If you have received a cheque that has been dishonoured for the whole or part of the debt, it will assist your case greatly if you photocopy the front and back of the cheque(s) when it’s received back from the bank. If the bounced cheque does not represent the whole of the debt, you must indicate to us which invoices the cheque was intended to discharge. Under no circumstances, should you ever send the original cheque to us, only a photocopy and be sure to photocopy the back of the cheque as there is information on the back of the cheque that we require. Please also state the date of presentation of your cheque(s) at your bank.
8. 8. WHEN YOUR CASE IS NOT STRAIGHTFORWARD
You must advise us in writing if the debt is not straightforward. We do not always undertake the recovery of all debts, however we will be happy to advise you on whether the details of your debt are straightforward or not.
9. 9. WHAT IS YOUR COMPANY’S CORRECT NAME?
Please inform us in writing if you make any changes with regard to the name or trading style of your Company. If you are instructing us on behalf of one of your associated Companies, then your associated Company will have its own unique Client Reference Number. It is essential when you instruct us that your instructions are absolutely clear as to whom the debt is owed to.
10. 10. CANCELLING INSTRUCTIONS FOR COURT ACTION
If, for any reason, you wish to cancel your instructions for Court Action you can email us at info@prmsltd.co.uk, or you can send a fax to 0870 160 6748 to cancel the action, provided you can do so by 3:30pm (GMT) on the eighth day of expiration of the Letter Before Action. After that time, it is not possible to cancel your instructions, because the documents will have been dispatched to the Court. If your debt is over £100,000 it will be issued in the Mayor’s & City Of London County Court and the latest time you can notify us to cancel an action here is 12 noon (GMT) on the eighth day of expiration of the Letter Before Action
11. 11. THE ARBITRATION ACT 1996
This Act has changed the Law to the detriment of the subcontractor and the small business. Proceedings cannot be taken if there is an Arbitration Agreement in your contract with the defendant. It does not matter if the defendant has no defence on the merits to your claim. Court proceedings will be stopped if they invoke the Arbitration Clause and you could be left to pay all the costs. If you are in any doubt, please fax us, on 0870 160 6748 or email, info@prmsltd.co.uk for advice.
12. 12. STATEMENT OF TRUTH
To enable any Court Action (Claim) to be issued it must contain a signed Statement of Truth (Please refer to information below). As your representatives, we can sign the Statement of Truth on your behalf. However, we are legally obliged, to inform you of the meaning and consequences of a Statement of Truth and we explain this on every Court Action form which is sent to you. The signing of the Statement of Truth is our statement to the Court, confirming your belief that the facts stated in the document(s) are true and that you have an honest belief in the truth of those facts. If, for any reason, the proceedings contain a False Statement, then proceedings for Contempt of Court may be brought against you, if you have made, or caused us to make, a False Statement in the proceedings, which you know to be untrue. The person from your Company signing the Court Action form must be certain that all the details provided to us are correct. You also accept the Statement of Truth if you send us online instructions.
13. 13. SCOTLAND & NORTHERN IRELAND
If you are based in England or Wales and your debtors are in Scotland or Northern Ireland, we can also issue Claims for you.
WHAT IS A STATEMENT OF TRUTH AND HOW DOES IT AFFECT MY CASE?
From the 26th April 1999, the Civil Procedure Rules provide that a Statement of Truth must be endorsed on documents when proceedings are issued. Documents to be verified by a Statement of Truth include any proceedings issued in the High Court or County Court, some applications made to the Court and all Witness Statements. (Witness Statements in effect replace Affidavits). Statements of Truth will either be signed by a representative of this firm on your behalf or in certain circumstances, for example a Witness Statement will be signed by a representative of your Company. The signing of a Statement of Truth has serious consequences.
Where this Company signs a Statement of Truth on your behalf our signature will be taken by the Court as our statement that
• The Client on whose behalf we have signed, has authorised us to do so
• That before signing, we have explained to the Client that in signing the Statement of Truth, we are confirming the Clients belief that the facts stated in the document are true.
• That before signing, we have informed the Client of the possible consequences if it should subsequently appear that the Client did not have an honest belief in the truth of those facts.
FALSE STATEMENTS
Proceedings for Contempt of Court may be brought against any person or company if they make or cause to be made a false statement in a document, which is verified by a Statement of Truth, without an honest belief in its truth. Such proceedings for Contempt of Court may be brought by the Attorney General or with the permission of the Court. Contempt of Court can be punished by a prison sentence - the maximum penalty being a fixed term not exceeding 2 years and the Claim being thrown out.
WHAT IF A DEFENCE IS FILED?
When a defendant files a defence, it is vital that a thorough investigation is carried out immediately to establish whether the complaints in the defence are justified. If the complaints or part of them are justified, you should take immediate steps to rectify the situation and communicate with us to sort out the problem as quickly as possible. We will then negotiate on your behalf with the defendant. The defendant may have a genuine complaint. Alternatively, the defendant may not fully understand the position. Also, the defendant may genuinely believe you are in the wrong, even if this is not the case.
THE IMPORTANCE OF THE SMALL CLAIMS TRACK
In all cases under £5000, if a defence is filed and the case is to be defended all the way to a Hearing then the case will be dealt with by means of the Small Claims Track.
The Court will give directions for the Small Claims Procedure automatically and so will a date for the Hearing. The procedure is very important because it will affect any case under £5000.
When one of your cases becomes contested, there are many factors you have to consider. You now have to formally prove that you delivered the goods and/or services; that they were not defective; that they performed correctly and thus you are entitled to payment. You should have invoices and be able to prove that the defendant has previously made no complaint (until they received the Court proceedings).
Another factor to consider is sending a representative from your Company along to a Hearing, to provide oral evidence in support of your Claim.
The Small Claims Procedure is deliberately designed for laymen. If you send someone from your Company, they should have full knowledge of the facts and a full understanding of all the issues regarding the Claim. They should be able to express themselves clearly and articulately.
WHAT HAPPENS AFTER WE HAVE ISSUED COURT ACTION FOR YOU?
From the date of issue, the defendant has approximately three weeks in which time they must either pay the debt or enter a defence, or you will be entitled to enter Judgment against them and, if necessary, send in the High Court Enforcement Officer. When we have issued a Letter Before Action, we do not need to know anything that goes on between you and the defendant. However, when proceedings have been issued it is imperative that you keep us fully informed of everything that happens. Before Judgment, should the defendant wish to come to an arrangement with you, you should ask them to contact us directly. We will then negotiate on your behalf and keep you fully informed as to the outcome.
WHAT IF THE DEFENDANT IS PLAYING FOR TIME?
After giving the matter full consideration, you may come to the conclusion that the defendant is just playing for time. In appropriate cases, we can make an application for Summary Judgment for you and will send you full advice on how that is dealt with when the occasion arises.
In some really serious cases, where summary judgment is either not appropriate or cannot be obtained and the dispute cannot be resolved between the parties, it is inevitable that the matter will go to a full, expensive and time consuming trial.
Of the small minority of cases that are contested, by far most are settled before the Hearing. In most situations, the defendant is trying to buy time, but inevitably every now and then the odd case can crop up where a fully fought trial cannot be avoided. If this situation arises, then we would advise you on how to make arrangements for the future conduct of the case. If your case were to get to the stage of being contested, it would be absolutely imperative that the case be managed properly. This is because there is an enormous amount at stake when a case goes to full trial. The costs can be immense, and if you are taking a case to full trial you must give yourself the best chance of winning.
However, the majority of the cases that we handle are not contested. Debt Recovery is a matter of money and debtors hanging onto it for longer than they should. Usually, the threat of legal action is enough to bring the defendant to the negotiation table. Debt Recovery is not about expensive litigious disputes between rival parties.
HOW WE KEEP YOU FULLY INFORMED
It is our practice to keep you fully informed on the recovery of your debt at all stages and we notify you on the same day of all correspondence, telephone calls, as well as payments received by us They are sent onto you the next working day after we receive them.
.
PAYMENTS TO YOU AFTER ISSUE
If you receive payment after the Claim has been issued you should fax us with the amount and date you received the payment. We will then either write to the defendant for any costs and/or interest still outstanding. If the payment you receive covers the costs and interest and full amount of the debt please advice us and we will close our file for you.
Please do not state “Paid in full, close the file” unless the amount received by you is the full amount of the debt, costs and interest, as we cannot ask the defendant for the costs and interest at a later date once we have closed the file.
CHEQUES MADE PAYABLE TO US
We notify you of cheques paid to us the same day and forward them to you the next working day, provided they are made payable to you. If cheques are made payable to PRMS Ltd, we notify you the same day that we receive them and release our own cheque to you once the debtors cheque has been cleared through the banking system.
FULL AND FINAL SETTLEMENT
Please remember that at this stage, we can accept payment on your behalf, but you must be very careful about any payment that is stated to be ‘in full and final settlement” as this means exactly what it states i.e. the amount that is offered is paid in full satisfaction of the debt. We cannot recover any missing part of the debt or costs and interest, if we accept a cheque on your behalf in full and final settlement that is not for the full amount.
WHAT HAPPENS NEXT?
Approximately three weeks after the issue of the Claim, if no defence has been received you will be in a position to proceed to have Judgment entered against the defendant and instruct the High Court Enforcement Officer or County Court Bailiff. Further details will be sent to you at that time on our Enforcement Reminder Form.
IF YOU HAVE ANY QUERIES
If you have any queries or need any further information relating to taking Court Action then please contact us on:
Telephone: 020 8291 1177
Fax: 0870 160 6748
Email: info@prmsltd.co.uk
3 – Enforcing Judgment
VERY IMPORTANT INFORMATION CONCERNING CLAIMS, JUDGMENTS & EXECUTION
You may not be the only creditor pursuing a particular defendant, especially if the defendant is about to become insolvent. The sooner you issue a Claim and proceed to Judgment and Execution, the higher up in the queue to recover your debt you will be.
ENTERING JUDGMENT AND METHODS OF EXECUTION
Approximately three weeks after the Claim has been issued, you will receive an email advising you that you can now proceed to enter Judgment against the defendant and instruct the High Court Enforcement Officer or County Court Bailiff to issue a Warrant of Execution.
THE IMPORTANT THINGS TO REMEMBER AT THIS STAGE:
• You must inform us of the exact amount that we are to enter Judgment and Execution for and whether there have been any payments to you since the issue of the Court Action (Claim). Do not rely on any earlier notification between us. It is vital, that when you are instructing us to proceed to Judgment and Execution, that you demonstrate in the clearest possible terms the exact amount of the debt that remains outstanding to you so that we do not issue Judgment and Execution for too much or too little.
• We will need your written instructions to proceed. This is part of our policy of always leaving you in control of the pace of your Court Action (Claim).
• It is always worth double-checking that you have given us the correct instructions with regard to the defendant’s exact name. It could cost a huge amount of money if there is a technical defect in the Judgment whereby the defendants name is not exactly correct. If it is not exactly correct, even by one letter then even that alone, without any merit on their side, will enable the defendant to apply to the Court to set aside the Judgment. It will inevitably follow, that you will be ordered to pay the High Court Enforcement Officers costs if the Judgment is set aside for this reason and these can be substantial, It cannot be emphasised too much the care that must be taken in establishing the exact name of each defendant at both the Claim stage and at the Judgment and Execution stage. You will see from the notification of issue of Claim and from the Judgment Form the exact name the defendant has been sued in. If that does not exactly correspond with your records then alarm bells should ring and you should inform us immediately AND NOT sign a request for the issue of Judgment and Execution.
• Checking your records for the correct address at this stage is also very important. The address will be the one to which the High Court Enforcement Officer or County Court Bailiff will attend to recover payment. There is no point in sending the High Court Enforcement Officer or County Court Bailiff to an empty business premises, or to a Limited Company’s registered office address if this is simply the address of their solicitor or accountant. We cannot send the High Court Enforcement Officer or Bailiff to a P.O. Box address. If you only have a Post Office address you have the legal right to apply to the Post Office for the name and address of the person who is responsible for the P.O. Box, such information will be essential before the Writ of Execution can be obtained.
• You must provide us with an address where the defendant has assets, which belong to him or her (please bear in mind that a High Court Enforcement Officer or County Court Bailiff cannot force entry to a private residence - although he can remove any assets belonging to the defendant from outside e g. - a vehicle).
• We cannot increase the amount claimed on the Claim form or Judgment once Court Action has been taken. If at this stage, you are proceeding to Judgment and you have further invoices that are outstanding since the Action (Claim) was issued, you must instruct us on that as a separate matter. If this happens please make sure that you make us clearly aware that this is a second and separate action.
COUNTY COURT JUDGMENTS
County Court Judgments and Executions are processed the same day we receive your written instructions provided we receive them by 3:30 pm (GMT).
We also confirm to you the same day that Judgment and Execution have been issued. If your debt is over £600 the Judgment can be transferred to the High Court for enforcement through the High Court Enforcement Officer.
THE DEFENDANT HAS CONTACTED ME WITH AN OFFER OF PAYMENT, ALTHOUGH I HAVE INSTRUCTED THE HIGH COURT ENFORCEMENT OFFICER TO RECOVER MY DEBTS. SHOULD I ACCEPT THE PAYMENT?
After the High Court Enforcement Officer has been instructed, you should not accept any payment direct from the defendant without speaking to us first.
Please do not telephone the High Court Enforcement Officer direct. We forward copies of the High Court Enforcement Officer’s correspondence for information which shows the telephone number, it has been mistakenly thought that it is in order for clients to telephone the High Court Enforcement Officer direct. This is not so and and all enquiries should come through us.
ACTIONS WHERE THE HIGH COURT ENFORCEMENT OFFICER IS INSTRUCTED
Now that the High Court Enforcement Officer has been instructed you must not accept any payment direct from the defendant. Telephone us immediately if you receive a cheque after we have issued Judgment and Execution. We will contact the High Court Enforcement Officer and then advise you of what to do regarding the cheque that you have received. YOU MUST REMEMBER THAT IF YOU ACCEPT PAYMENT WHILST THE HIGH COURT ENFORCEMENT OFFICER IS INSTRUCTED, YOU CAN BE LIABLE FOR ANY CHARGES INCURRED BY THEM WHICH CAN BE SUBSTANTIAL- UP TO 10% OF THE AMOUNT OF THE DEBT OR EVEN MORE IN SOME CASES!
ACTIONS WHERE THE COUNTY COURT BAILIFF IS INSTRUCTED
Accepting payments for matters where the County Court Bailiff is acting (and not the High Court Enforcement Officer) can be different because there is a fixed fee to instruct the Bailiff. You should not accept payment after the Bailiff has been instructed, if the Bailiff had made arrangements for hiring vans for removal and sale and instructing an auctioneer. This is the point at which extra cost in addition to the fixed fee would be added to the Bailiff’s fees. To be sure in each case, telephone us first if you are in any doubt. Please do not confuse the position between the High Court Enforcement Officer and the County Court Bailiff, where the High Court Enforcement Officer is instructed you should NEVER accept a payment without consulting us.
In the case of the County Court Bailiff YOU MUST ADVISE US IMMEDIATELY if you receive a payment as we will need to notify the Bailiff so that he does not attempt to recover the debt from the defendant.
HOW LONG DOES IT TAKE?
Once the High Court Enforcement Officer or Bailiff has been instructed we usually receive their confirmation and/or initial report within 10/14 days.
If you have not heard from us and are concerned about your case please e-mail us at info@prmsltd.co.uk with your concern.
With regard to the final result of the Execution, the High Court Enforcement Officer usually takes on average 3 - 4 weeks to inform us of the result. The Bailiff takes on average 4 to 6 weeks.
We will send you a copy of the result and any other correspondence that we receive in the meantime. It is necessary to be patient with the High Court Enforcement Officer or Bailiff as they have to work through their warrants in the proper order and no amount of prompting from us will change that.
THE RISKS OF EXECUTION
There are inherent risks in proceeding to Execution and this must always be borne in mind. You could run up extensive legal costs with the High Court Enforcement Officer and if your defendant goes into liquidation or is made bankrupt, you may be left with substantial costs. The sooner you start proceedings and enter Judgment and Execution the more chance the High Court Enforcement Officer has of getting your money for you before an intervening insolvency.
4 – HELP AND ADVICE
HELP US TO HELP YOU...
• We invoice all our Clients on the 28th of each month for all work undertaken during that month regardless of whether the debt has been paid at that stage.
• All invoices are payable immediately. We do not work on standard trade terms of 30 or 60 days for payment.
• Any queries on our invoices should be made promptly in order that they can be clarified and/or a credit note raised where necessary.
• All invoice numbers or Client Reference Numbers should be quoted when payment of an invoice is made, in order to minimize errors being made in posting cheques to wrong Client accounts. Please ensure you quote the Client Reference Number and the Invoice Numbers on the reverse of your cheques.
• We do not pay court fees on your behalf when a Court Action is requested. All Court Action fees are payable in advance.
• If paying by Bank Giro credit, details will be supplied on request.
IF YOU HAVE ANY QUERIES
If you have any queries or need any further information relating to recovery of outstanding debts then please call:-
Telephone: 020 8291 1177
Fax: 0870 160 6748
Email: info@prmsltd.co.uk
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as to the accuracy or content of the above information and specific legal
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