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. << back to top
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