HomeFWJ TakeawayDebt recoveryLetter before actionHow effective is a solicitor’s demand letter?

Using a properly drafted and hard hitting debt recovery letter means you maximise the chances of getting paid quickly. Our brilliant team can help talk through your options.

The question “how effective is a solicitor’s demand letter” is a good one to ask if you are thinking of retaining a solicitor to help with your debt collection.

The effectiveness of a solicitor’s letter depends on the experience of the solicitors writing the letter; as the wording of the letter is very important in terms of maximising your chances of recovering the outstanding debt.

  • a poorly worded letter before action will simply be ignored.
  • a well drafted letter before action which takes in to account issues such as the debt size, whether an individual or company is receiving it and correctly setting out the sanctions in the event of non payment can make a huge difference to your chances of recovery.

For example,

  • if the debt is undisputed and the late payment letter is sent to an individual, then the solicitor’s letter should make it clear that in the event of non-payment that a statutory demand or bankruptcy proceedings may follow.
  • however, bankruptcy proceedings are only available in certain debt size cases and therefore the solicitor’s letters must reflect that. It is pointless threatening bankruptcy proceedings if the debt size would never allow that.

With regard to company debtors, the threat of a winding up petition in the event of non payment is also highly effective in the letter before action but again, care needs to be taken in threatening such outcomes without understanding of the underlying debt. There is also the impact of the relevant pre-action protocols which need to be taken into account when drafting a demand letter.

Use our experts to get it right

Therefore, a demand letter isn’t as simple as some solicitor’s firms make out. Just simply sending out the same type of solicitor’s letter or letter before action on every type of case is not the most effective way of recovering a debt.

We would highly recommend that you use the debt recovery team at Francis Wilks & Jones to send out your solicitor’s letters.

We can

  • maximise your chances of recovery;
  • avoid mistakes;
  • maximise the recovery of interest and Late Payment Compensation;
  • deal with any alleged disputes; and
  • advise on the best next steps if the debt remains unpaid.

Whilst some solicitors may indicate that a late payment letter is something they can quickly knock up, it is in fact something which needs to be drafted carefully and with thought.

Contact our friendly debt recovery team today for help.

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