The financial limit for the small claims track is £5,000, but lower limits apply for personal injury and housing disrepair claims, but as a debt collection agency I want to deal with financial claims for service and goods supplied which fall under the “Small Claims Court”
As I have said the limit for such claims is limited to £5,000. In the case of a defended successful claim, it is possible to claim for court fees, and interest (provided that this is worded correctly in the claim), but not costs such as legal fees. Consequently, if a claimant is concerned about appearing for themselves or Company in court, they must be aware that if they win a claim, they could still be out of pocket if a solicitor is representing them.
However, in April 2013, the limit in the Small Claims Court will be increased to £10,000, this will undoubtably lead to many more claims and as a further consequence, put the legal system under extra strain. Is this good or bad? For those who are confident, they will now be able to pursue debts under £10,000 and it will allow them to file claims without incurring solicitors costs in defended cases, as they will be able to represent themselves.
At S J Collections, we are able to draft claims for a minimal fee, and advice and “hold a client’s hand” in disputed and defended claims, take a look at www.sjcollections.co.uk for further information