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Many people who aren’t involved in the process of recovering debts, as I am, may be confused about the various ways of approaching it. In particular, debt collection and enforcement — what are they, and how do they relate to one another Debt Collection A debt collection agency (DCA) is used when direct attempts to get payment aren’t working. Some will buy the debt from you, often at a knock-down price, and then recov

Court proceedings to recover money you’re owed are not only slow but also expensive. The fee — from £455 to ££10,000, depending on the size of the debt — has to be paid upfront, which can be difficult if the debt has left you short. And this doesn’t mean the process goes any quicker. First you have to obtain a court judgement that you’re entitled to the money. Then, if the debtor still doesn’t pay up, you have to pur

  Personal debt fell sharply in the wake of 2008’s financial crisis, but figures from 2016 show it’s growing again fast. Mortgage borrowing and unsecured loans have risen, with the average household owing a record figure of £12,887 even without mortgages. Record Household Debt Both the British Bankers’ Association and the TUC have highlighted sharp rises in personal debt in the closing months of 2016, with the B

Last month, Master of the Rolls Sir Terence Etherton unveiled his proposals for a radical change in the court system — the Online Solutions Court. This is part of a six-year plan to modernise the courts. In particular, it involves digitising the administration and processes of the judicial system, bringing the courts into the 21st century. It can be accessed from home, but it’s envisioned that physical courtrooms wil

SMEs that rely on large companies as clients have always suffered from a power imbalance when it comes to paying bills, and the situation seems to be getting worse. It’s been estimated £266bn is being withheld from SMEs through late payment, and there are signs this has been increasing since the Brexit vote. Duty to Report All political parties are promising action, and the Duty to Report measures were introduced in

The Ministry of Justice has issued new regulations governing the process for recovering debts. The Pre-action Protocol (PAP) will come into force on 1st October 2017, and it’s vital for anyone involved in debt recovery to be familiar with it by then. What is the Pre-action Protocol? The stated aims of the PAP include to “encourage early engagement and communication between the parties… enable the parties to resolve t

You’d think that getting paid for work or sales would be at the top of the priority list for any company. It seems, though, that many SMEs are only too willing to write off any debt that presents difficulties. SMEs and Bad Debt Although they don’t get media coverage like the giants, SMEs are the lifeblood of UK business. Government research last year showed that more than 99% of the country’s businesses are SMEs, 1.3

Many companies seem to regard credit management as a necessary evil. You obviously have to make sure you get the payments you’re owed, but this could be seen to have the potential for damaging good relations with your customers. In fact, nothing could be further from the truth. Far from causing damage, strong, confident credit management can actually improve relationships. Nurturing Customers No doubt you put a lot o

Obviously I feel strongly that an independent debt collection agency, such as SJ Collections, makes a valuable contribution to the collections sector — I wouldn’t be running this business if I weren’t convinced of that. On the other hand, I don’t consider I’m automatically the answer to everyone’s prayer. So what is important about an agency? Clients Who Don’t Need an Agency Some companies find it more convenient to

Blink and you can miss a telling statistic. In this case, it’s a figure published by Sage Pay in January. The payment service provider found that small and medium sized enterprises in the UK are owed more than £55 billion in unpaid or outstanding invoices. That’s a truly shock statistic alongside the finding that 67% of SMEs use paper invoices and spend the equivalent of two weeks a year chasing unpaid invoices. For