City firm offers “professional” alternative to debt collection agencies

Debt collection: firm charges 10% commission

Debt collection: firm charges 10% commission

Devonshires has claimed to be one of the first City law firms to offer a ‘no win, no fee’ debt recovery service to give “companies of all sizes a professional and affordable alternative to debt collection agencies”.

The services on offer from the separately branded Debt Collection Centre range from telephone and letter collection of debts and High Court enforcement to company litigation and insolvency – “tasks debt collection agencies may struggle to deal with if they don’t have experienced in-house lawyers”, the firm said.

Devonshires will typically charge UK clients about 10% of the debt as commission if it recovers the debt.

Partner Matthew Hennessy-Gibbs said more companies were outsourcing their debt recovery. “Our corporate clients instruct us to do debt collection because they know we won’t damage their reputation or our reputation through the methods we use to collect the debt.”

He argued that receiving a letter from a well-known law firm rather than a small debt collection agency can encourage the debtor to pay the debt quickly, citing one corporate customer who had 75% of its debts paid after an initial letter from the firm.

Late payment and unrecovered debt was particularly bad in the construction, food and recruitment industries, the firm said, while research from the Asset Based Finance Association calculated that SMEs were owed about £67bn in unpaid invoices, up 8% in the last year, and 36% since 2011.

Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.


30 March 2021

Judicial review reform: A risk to the courts’ post-Brexit standing

In addition to questions about the motivations for curbing legal challenges to political decisions, the proposed reforms to judicial review raise concerns about undermining the reputation of the English courts

Read More