When debt collection fails

Posted on January 31st, 2017 by Alun

When debt collection fails

Prompt Payer Logo Ethical Debt CollectionMark Flower from ethical debt collection recovery service Prompt Payer talks to us about the options for businesses to recover debts owed. Prompt Payer is a free benefit of HETAS registration.

Prompt Payer assesses debts carefully and where appropriate tries very hard to collect the money you are owed, but when they fail Court action might be the only route. The process for making a claim is very straight forward and can be done online. Here, Mark outlines the process:

Their options include:

  • Admitting the claim if they agree they owe the money you are claiming. They will also need to fill in a form giving the Court details of their financial circumstances and they will be asked to make an offer of payment
  • Filing a defence, if they disagree with the amount they owe.
  • Submitting an acknowledgement of service if they intend to defend the claim but need longer than 14 days to prepare a defence

If you receive judgement

The court can issue:

a judgment by instalments, where the debt is paid off over time, or

a judgment forthwith, where the whole amount  owed is due immediately

If they have admitted the claim and made a monthly offer of payment, it is likely that they will receive a judgment by instalments.

The monthly repayment rate will be set by the court using the information provided in the admission form.

If they don’t respond to the claim the Court can’t take their circumstances into account, they will enter a judgment against them. This is called a judgment in default.

They can ask the Court to look at this again if the repayments are more than they can reasonably afford. This is called a redetermination.

If they don’t keep to the terms of a CCJ

If you receive a CCJ in your favour and they don’t keep to the terms it sets out, you can ask the court to enforce the debt. There are several ways that they can do this:

  • Bailiff action
  • Attachment of earnings
  • Charging order

Through your registration with HETAS, you have access to Prompt Payer. For further advice or to discuss an issue you have, please contact us at info@promptpayer.com or call 0845 069 7000. Additionally, via Prompt Payer, you have access to a legal helpline. Click here to find out more.

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