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Time for a financial check up?

Categories: Latest News, VP News, Civil Litigation Updates

Time for a financial check up?

In recent news we heard the announcement on 2 October 2014 that the Pay Day Lender, Wonga, was forced by the Financial Conduct Authorty to write off £220,000,000 of loans to 375,000 borrowers after the firm admitted those people should never had been given loans.  Wonga was required to write off the debts because the FCA found that it had granted the loans without checking people could afford the repayments. 

In light of this is your business suffering from debts owed to you?  Is this causing any cash flow problems?  If so, do you need your Terms and Conditions updated or do you need to take your debtor to Court?

Here are some tips to reduce the risk of debt:

  • Change your Terms and Conditions to include a clause claim interest on outstanding owing debts;
  • request payment up front or instalments;
  • issue Court proceedings against the debtor.

That said, life is not perfect so some debt may be inevitable.

If you are owed a sum of money you can take your claim to the Courts either the Small Claims Court if the sum owed is less than £10,000 or County Court Money Claims Centre if over £10,000.  

We can act on your behalf to recover the sums owed and in every instance a letter before action should be sent confirming the sum owed, requesting payment and that Court proceedings will be issued if not paid within a certain time. 

If the debtor refuses to pay or fails to respond we would prepare court documents to "issue" the claim.  If your claim is less that £10,000 you may wish to issue your claim through Money Claims Online.  Once the Claim Form has been sent to the Court they will then "serve" your opponent - the Defendant.  The fee payable will depend on the level of your claim for example if the sum owed is less than £5,000 it will be in the region of £100.

The Defendant will have the opportunity to respond to your claim and their failure to do so means that you can enter judgement.  In any event we or the Courts will guide you through the next steps. 

For more detailed advice regarding debt recovery procedures, issuing claims and/or updating your terms and conditions for a free, no obligation chat please contact us on 01392 344800, or use the contact us page. 

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