Letter Before Action
Our seven day letter before action
to the debtor and follow up telephone calls service is completely
FREE and you will only pay if we are successful in recovering
your debt.
The way in which we can do this is quite
simple. We will make a claim for late payment interest and
compensation as laid out in the Late Payment of Commercial
Debts (Interest) Act 1998 over and above the value of your
debt.
If the debtor pays the total claimed, then
we will simply account to you after the funds have cleared
with our receipted account. That way you have recovered your
debt, interest and reasonable debt recovery charges all at
NO COST to you.
If the debtor pays the debt, but not the
interest and compensation, then you may either authorise us
to pursue the outstanding interest and compensation at NO
COST to you.
Alternatively the maximum you will be liable
to us for is the amount of the compensation that would be
awarded under the Act
and we will always exercise our discretion to negotiate a
lower fee dependent on the quantum involved and complexity
of the matter.
If the debtor does not pay the debt, then
our file is closed (if that is what you want) and you owe
us nothing. However, as part of our seamless debt recovery
procedure, we can issue legal proceedings on your behalf and
our charges will still only be the equivalent of the statutory
compensation due to you under the Act, which will only be
billed to you once Judgment has been awarded.
By way of example, you are owed £750
and an invoice dated 1 January 2006 is 60 days overdue. You
instruct Veritas Legal on 1 April 2006 to collect the debt
on your behalf, allowing you to concentrate on your core activities.
We will ask your debtor for payment of :-
| The
Debt |
£750.00 |
| Interest under the Late Payment
legislation at 8 % above the base rate, which will be
4.5% (between 1 Jan – 30 June 2006), thus a total
of 12.5% over 60 days – accruing daily at 26 pence |
£ 15.41 |
| Compensation for a debt below
£1,000 |
£ 40.00 |
| Total Due |
£805.41 |
| Your debtor pays us £805.41
by cheque on 6 April 2006 |
|
| We account to you on 13 April
2006 with cleared effects and our receipted VAT account
for £47.00 |
£758.41 |
The whole service has cost you NOTHING
and you have "made" £8.41 in the process.
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