One method used to resolve outstanding issues between a client and their debtor is pre-litigation. Here at ACE Debt Recovery we actively support this pre-legal and pre-litigation approach as it often avoids the need for escalation to court proceedings which can prove both costly and time consuming for all involved, and possibly damaging to the commercial relationship. Pre-Litigation cases can be problematic and we are experts in acting as the third party with the aim of reaching resolution which is mutually acceptable to all parties. Our network of Sheriff Officers and Bailiffs allows us to physically serve notices of intent to the debtor with the added advantage of providing us an insight to the debtor’s premises which can prove useful during the debt recovery process.

To combat those difficult to reach debtors, we provide a Tracing service to locate the debtors whereabouts to aid in the recovery process. Land Registry checks also prove to be a useful tool detailing what property or land is owned by the debtor which could act as an asset to enforce a personal guarantee.

During our pre litigation service, we follow up our initial legal letter with regular, polite calls to the debtor to find out the status of their side of the claim. This allows us to update our clients on the status of their case daily if necessary. We will do everything in our power to avoid your case escalating to court proceedings.

Pre litigation Service in UK legislation

Thanks to the Late Payment of Commercial Debt Interest Act 1998, your debtors must pay interest on the amount that they owe and reimburse reasonable recovery costs to you. That means, whatever it costs for you to recover the money, including the cost of our pre litigation services, becomes their expense too. This means that if one of your customers does not pay for goods or services within 60 days (30 days for public authorities) you can exercise your right to request interest and a fee on top of the debt. The rate of this interest is the Bank of England base rate plus 8% per annum.

We have found that when a debtor becomes aware of this extra cost, and of how it will grow if the case is taken to litigation stage, they can become very keen to settle the debt as soon as possible within our pre litigation service. If you would like to find out more about your rights to compensation and our pre litigation service, get in touch with today.

When Pre Litigation Does Not Work

If a dispute cannot be settled in the pre litigation stages, our Litigation Team takes over. Their extensive and diverse experience combined with a pro-active and professional approach to dispute resolution ensures a swift close to the matter. We understand that litigation is usually a very unwelcome end to a lengthy dispute, so we work diligently to ensure that it affects your business and daily life as little as possible. Contact us today to find out more.