What is the Financial Conduct Authority’s view of a Lender taking a Debtor to Court?
As a lender it is vital that you have shown forbearance and that this is the option you use when the customer is not engaging.
I am a HCSTC Lender. How does the rate cap affect me collecting this way?
It doesn’t. The Court fees, Solicitors Costs and Court Interest added to the debt are all Statutory. This means that they are all added to the debt by the Court and therefore fall outside of the rate cap.
Can you guarantee that I will get my money back?
We cannot guarantee that you will get your money back. However, this is an example of some success we have had so far.
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Once the Claim has been issued can the Defendant enter into a payment plan?
Yes, they can. However, we would advise that they do this by way of a Consent Order. We advise this because this protects your position. It keeps the process just as serious for the Defendant. The plan is written down, both parties sign it and it has to be agreed by the Court. Because it is agreed by the Court, there is a fee payable to the Court which the Defendant has to pay. We also charge a fee for drawing up the Consent Order. The consequence of the Defendant failing the Consent Order is that you can proceed to the next stage in proceedings with no recourse to the Defendant and without having to start the proceedings again.
If a Judgment is made against a Defendant can they get this removed?
Yes, they can. If they believe that it has been wrongly entered, they can make an application to court to set aside Judgment. If they believe that it has been wrongly entered they can ask for your consent. For any application they make they have to have a reasonable Defence which would need to include grounds for why they did not make it on time. If it is their intention to pay you in full they can pay the Judgment within the first 30 days that Judgment is entered and request a certificate of satisfaction by paying a small fee and Judgment will automatically be removed.
Once I get Judgment what should I do?
You should enforce. Although Judgments remain on a credit file for 6 years you ultimately want to get paid and the quickest way is to enforce your Judgment. If you know where an individual debtor works you should Request an Attachment of Earnings. This means that you ask the Court to request the Defendant’s employer to pay the Court directly from their salary. We find that this pays pretty quickly. For commercial debts why not transfer your County Court Judgment to the High Court and get a High Court Enforcement Officer to serve it and obtain payment.