FAQs
FAQ
Is it really free to instuct?
Yes it is! Thanks to the Government’s Late Payment of Commercial Debts Act creditors are allowed to claim the cost of recovering a debt. Our costs are covered by a modest 8 percent success fee, once we have collected your debt, that is deducted from that principle figure.
What about any hidden charges or extra costs?
There are none, our service works on the basis that we will successfully recover the full amount of the outstanding debt from the debtor. In the unlikely event that we are unsuccessful in recovering a debt our services are completely free of charge. However, you would be liable for a 8% success fee of the original debt plus VAT to FDR if you accept payment from the debtor directly.
What extra charges does the debtor have to pay?
The extra charges are laid out in law and depend on the size of the debt, how long it takes for them to pay, and whether legal action has to be taken to recover the debt.
However the vast majority of debtors settle in full on receipt of our first letter, so in these cases late payment interest and compensation will be retained by us. If due to the time it takes to recover the debt because of its size, nature and complexity, late payment interest and compensation doesn’t cover our fees then those extra costs will be added to the debtor’s bill. Typically the recovery costs charged to the debtor are
10%
of the debt owed.
What if the debtor just pays the original invoice, but not the other charges?
Interest, compensation and, where applicable, recovery costs are payable by the debtor under the provisions of Late Payment legislation. The debtor would be advised that the full amount remains outstanding. If the creditor wishes they may agree to accept payment of the original amount less a sum equivalent to the late payment charges, due to us.
There are no hidden charges, however, you would be liable for a 8% success fee of the original debt plus VAT to FDR if you accept payment from the debtor directly.
What sorts of debts with FreeDebt Recovery Work on?
Consumer Debt?
No. We only deal with business debts in accordance with Late Payment legislation.
Small Debts?
Yes. We work with any commercial debts over £500.
Disputed Debts?
Yes, one of our great strengths is our experienced team of debt recovery negotiators, who will work with both sides to achieve a mutually satisfactory result.
Old Debts?
Yes. We will consider debts of up to 3 years old, but the older the debt, the harder it is to recover.
What information do you need to start recovering a debt?
We will need a copy of the original invoice showing the debtor’s details, including trading name, business address, telephone number, the contact name and any correspondence between your company and the debtor, especially any reasons given for non-payment.
How would you like this information sent?
Please use the Account Referral form on our
Instruct Us page which calls for most of the information we require; return that to us with a copy of the original invoice and any correspondence to
enquiries@freedebtrecovery.org
How long does it take?
It very much depends on the debtor. In most cases we will hear from the debtor within 7 days. The majority of cases are paid in full within 2 weeks, with the few remaining cases either in litigation or written off within 4 weeks. FreeDebt Recovery will then transfer the monies received on the same day that the cleared funds are available in our account.
What if the debtor disputes the debt?
We will discuss the debtor’s reasons for non-payment, with the aim of resolving any issues with the aim of recovering the full amount. We may need more information from you at this point to clarify the situation. We usually find, however, that once a dialogue has been opened swift settlement in full usually follows.
What if the debtor can’t pay?
While we will make every attempt to recover the debt in full, if we find that the debtor does not have the means to pay, we will negotiate an instalment plan. Providing you agree the terms we will undertake to collect each instalment when due. As soon as each payment clears into our account we transfer the monies to you. You will not have to wait until the whole amount has been settled.
How successful are you?
We recover 86% of the cases we accept.
Are FreeDebt Recovery solicitors?
No. We are Commercial Debt recovery specialists and work with solicitors who will issue legal proceedings on your behalf.
Who decides to take legal action?
You do! If your debtor is particularly intransigent and legal action remains the only option available, the final decision to proceed is yours. We will of course advise you and would only ever recommend legal proceedings in cases where there is a reasonable possibility of securing a judgment, and more importantly of actually being paid.
Will legal action always be successful?
Not always, by the time things reach that stage we should have enough information to make a realistic assessment of your chances of success, and importantly actually getting paid. If we believe that legal action will not be in your best interests, we would advise you to write the debt off.
Who pays the costs of pay legal action?
If the client decides to progress to litigation any legal costs will be their responsibility. Court fees and most legal costs can be added to the claim and are paid by the debtor if the action is successful.
If you would like us to deal with large quantities of small or large debts, we would be very pleased to discuss this with you and agree a mutually beneficial cost structure.