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Avoiding the pitfalls of debt collection services Avoiding the pitfalls of debt collection services

News / Articles

Sep 19

Avoiding the pitfalls of debt collection services

Written by Ervin Shakaj
Trainee Chartered Legal Executive

DDI: 01423 724623
E: ervin.shakaj@raworths.co.uk

Bespoke debt recovery for both individuals and businesses is a necessary evil in today’s world. Raworths has offered debt recovery services for many years and quite often one of the first questions asked by clients is whether it is best to instruct a firm of solicitors or a debt recovery agency.

Over the years, Raworths has acted for many clients who initially instructed a debt recovery agency but received far less than satisfactory outcomes from them. Clients reported various problems, including unclear charges, lack of communication, a heavy-handed approach which lacked legal clout and insufficient knowledge and experience when matters become contested.

In one particularly troubling example, a client was charged commission on recovered monies in addition to having already paid the debt recovery agency at the outset. In another example, the debt recovery agency refused to return the recovered monies to the client and proceedings had to be issued against them to obtain payment. Both these situations resulted in totally unnecessary costs being incurred by the client accompanied by enormous stress and anxiety.

This is why debt collection agencies regularly come under increased scrutiny. Unorthodox practices combined with a lack of legal expertise can make what appear to be cheap methods of recovering debt, completely the opposite.

So, how can Raworths help?

The first thing to understand is that the process of debt recovery is not straightforward. Generally, a firm of experienced solicitors will be able to assess the situation thoroughly, and using their knowledge of the law and the relevant procedures can advise on the best strategy. In addition, if a debt is disputed at any stage, clients can benefit from immediate access to specialist legal advice from experienced lawyers. This is essential for recovering a debt as efficiently as possible and contrasts starkly with debt recovery agencies which are unregulated and usually have few or even no qualified lawyers.

When the team at Raworths are instructed, they will consider all the evidence and advise the client as to the best possible strategy to recover the debt. They will also provide clients with a step by step approach and always advise on the likely chances of success as the case develops.

So be aware that instructing often unqualified and unregulated debt recovery agencies, who may appear to have the relevant expertise, will not often substitute a reputable firm of solicitors.

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