Issuing a County Court Claim In our experience 98% of debts are paid upon receipt of our letters and follow up telephone chasing service, thus avoiding the need to litigate at all. Even if legal proceedings are required, we will still act for you and limit our costs to those of the compensation awarded under the Late Payment of Commercial Debts (Interest) Act 1998. For example You are owed £12,500 on an invoice that was due for payment on 31 January 2006. You instructed us to issue a legal before action on 15 March 2006, but the debtor has made no contact or offered to settle the debt, despite having received our letter and been contacted several times by telephone. We have therefore recommended litigation and you instruct us to issue proceedings on 1 April 2006 for:- | The Debt | £12,500 | | 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 £4.28 | £256.85 | | Court Issue Fee | £250.00 | | Late Payment Compensation | £100.00 | | Total Due | £13,106.85 | | The Debtor settles the full amount seven days following issue of the Claim Form and we account to you on 15 April 2006 with cleared effects and our receipted account for £117.50 | £12,989.35 | The service has cost you NOTHING and you have gained interest of £239.35 in the process.
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