Yes that old chestnut! But if recent media stories are to teach us anything, then sometimes when you need something (and of course I’m talking about the use of a Law Firm for your final collections stage), you’re best to actually engage one who really knows what they are doing.

Trying to blag it with made up names or dodgy solicitor headed paper printed in house will only get you in trouble, and nobody wants that! If your internal collection strategy has proved, historically, that a solicitor’s letter will yield more revenue, then what’s stopping you instructing a real one with demonstrable experience and knowledge of debt collection? Many Law Firms have an established and successful process to not only issue proceedings through to an appropriate enforcement, but to conduct a thorough assessment of your debts to properly explore debtor’s affordability, agree terms and monitor or report back on recommended next steps.

Imagine what you could get back if that Law Firm was able to identify legal cases where a customers ability to pay has been explored and confirmed. You‘ll know what you can and cannot do next and minimise your risk of falling foul of Treating Customers Fairly Guidance! Law Firms stick to the same codes of practice as other Debt Collectors in order to remain authorised and regulated by the FCA. Data Protection, vulnerable customers, TCF to name but a few! But in addition, we also have to adhere to the Solicitors Regulatory Authority giving an extra level of auditable quality and compliance for any clients looking to be sure they can trust their collectors with their reputation.

If you are writing to your customers advising them they risk legal action you have to actually be suing some, or sorry …...the FCA will be all over you like a rash and they are unlikely to be very happy!  After all they clearly say “It is unfair to communicate, in whatever form, with Consumers in an unclear, inaccurate or misleading manner” and one of the examples they give is not using letters intended to mislead the customer or make threats you will not carry out. Those days are long gone, much like bell bottom trousers. So is it helpful to recover your outstanding debts by keeping the debt for too long or eventually outsourcing it to a provider who does not litigate?  

Well you’ll get some initial results generated by the stronger tone and the re-brand but when both of you have reached the end of your processes, when non or late paying creditors are seriously starting to affect your cash flow and causing your business problems, why keep the debt or send it to some one who’s simply going to trot out a few hackneyed letters and make the odd call via a dialler programmed to ring for less than 20 seconds? Going straight to a Law Firm shows that you are serious about recouping your debt, that your company is not to be taken advantage of or thought to be a pushover, in these social media savvy days, word spreads, let one debtor off and the chances are others will chance their arm! So take the initiative and look for a complete solution not a partial one. 

If solicitors cannot persuade your debtor pay when we have ascertained that they clearly can, then allow us introduce them to our friend the District Judge, if uncontested, gaining judgment and legal recognition that you are in fact owed this money is not as expensive as you may think and you then decide if and how to enforce keeping control of your costs of which 75% minimum should be recoverable anyway, seriously where’s the downside? -ends-This article is provided for general information only. Please do not make any decision on the basis of this article alone without taking specific advice from us. stevensdrake will only be responsible for the advice we give which is specific to you.