Information supplied by Asif Timol.
Its a question often asked in Business, should you use a Debt Collection Agency when recovering a bad debt or a Solicitor? Quantum Legal explain the differences and what is the best route for you as a business.
When you’re faced with debtors who simply refuse to pay, you inevitably find yourself asking the question – what next?!
Not being paid money that is rightfully yours is frustrating enough without having to decide on the best course of action to add to your woes.
At this juncture, the first decision is whether to refer the matter to a Debt Collection Agency (DCA) or a firm of solicitors and you’ll no doubt be wondering who to turn to.
In short, solicitors are authorised and regulated by the Solicitors Regulation Authority (SRA). Any complaints against the solicitors must be dealt with directly in the first instance but if you fail to reach a satisfactory resolution, you can involve the Legal Ombudsman. The SRA also requires solicitors to maintain properly audited accounts and have professional indemnity insurance in place.
DCAs are now required to be authorised by the Financial Conduct Authority and it is important to check that the DCA is registered.
However, The FCA is also looking to regulate solicitors firms dealing with this work so you could benefit from your advisor being subject to double regulation in due course.
The key difference however is the fact that solicitors are trained, experienced and specialists in the field of conducting court proceedings. This means that where pre-action communications prove to be unsuccessful, the transition to issuing proceedings in the county court will be seamless.
DCAs on the other hand will often be faced with the need to refer the matter on to a legal team to take over conduct of the matter which would mean costly delays in processing your claim.
When you instruct solicitors, you can be rest assured that the individual who takes your initial instructions will be have conduct of the matter through to settlement and as well as the specialist service you will be receiving, you will be benefit from knowing that your matter is in the hands of a regulated and authorised body.
Contact Quantum Legal’s Debt Recovery department.
They can issue you with a simple new client pack and thereafter discuss the options available to you. Please contact their Debt Recovery Department on debtrecovery@quantumlegal.co.uk.
