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Should I use a Debt Collector or Money Claim online?

Last modified: January 31, 2024

Should I use a Debt Collector or Money Claim online? Frontline Collections

Debt Collector or Money claim online?

Most people at some point in their life will be owed money. It can be as an individual who is owed money for a personal loan, work done or for goods not paid for. It is often a Business that is owed money by an individual for a variety of reasons. Whatever the scenario, the best route to recover what is owed is pondered. In this article we attempt to help answer the question of ‘should I use a debt collector or money claim online?’

Both have their pros and cons. For minimal duress, the obvious choice is to use a Professional Debt Collector with legal capabilities but from a different perspective, money claim online can help ratify a debt in the eyes of the law. This is particular helpful when there is a serious dispute on the matter.

Money claim online

If you are owed money, you can apply to a county court to have the debt ratified by a County court in England and Wales. For making claims of £100,000 or less you will need to send a letter before claim. This letter before action needs to be factually correct in all aspects. It should give a summary of the debt owing and when it was due. This is part of the pre-action protocols required as part of the claim process.

MCOL was designed to be an easier way to start a county court claim for a fixed amount of money. It maybe easy for some but it comes with its own pitfalls. For instance, failure to follow civil procedure guidance can cause delays in legal proceedings and cost you time and money.

Also, it is advisable to note that if there is any administrative error when a claim is issued then you will be unable to obtain a refund of any court fee paid. Using money claim online can be an expensive exercise. Please see current court fees just to issue a claim

Claim amount Fees
Up to £300 £35
£300.01 to £500 £50
£500.01 to £1,000 £70
£1,000.01 to £1,500 £80
£1,500.01 to £3,000 £115
£3,000.01 to £5,000 £205
£5,000.01 to £10,000 £455
£10,000.01 to £200,000 5% of the claim
More than £200,000 £10,000

So issuing a claim for £6,000 will start off with an initial payment of £455. If the debt is disputed or there is a counterclaim then you need to be aware there will be further fees to pay. Such as hearing fees etc Please visit this site here for further information on additional fees  This will be in addition to potential appearances in court to mediate any dispute.

3 Key points to note when using Money Claim Online are:

    • Your claim must be for a fixed amount of money less than £100,000;
    • There cannot be any more than two defendants (people or organisations);
    • The Defendant/debtor must be served to an address in England or Wales;

Having commenced a money claim online

Having commenced a money claim, if the Defendant files a defence to the claim, then the legal proceedings will be transferred to the local County Court for Directions. it is likely that it will then be listed for an appropriate hearing date at further cost to the claimant.

If the Defendant is an individual, then the legal proceedings will automatically be transferred to their local County Court. Once the claim has been transferred, the claimant will then need to contact the local court where the legal proceedings have been transferred to for any information on the claim’s progress.

What if the Defendant fails to respond to the claim?

If the Defendant fails to respond to the claim within the allowed time you can apply to have a default judgment entered. If the debtor completes an admission form, they may make an offer of repayment to which the claimant can accept or refuse.

Enforcement of a CCJ

If you obtain a judgment and it is not paid then you will need to consider enforcing a CCJ. This comes with its own challenges and there are different options. Dependent on the debtors circumstances, the most appropriate method of CCJ enforcement should be chosen. Read more about enforcing a CCJ here.

Should I use a Debt Collector or Money Claim online? Frontline Collections

Using a Professional Debt Collector

Using a Debt Collector is a very appropriate method to recover monies where there is no dispute. It is essential that only a Professional Debt Collection Agency is used. One with knowledge or expertise of your particular problem or niche of work.

It is important to know your options when you are owed money. We live in a modern world of the ‘blame’ culture and the less scrupulous in society look for a way not to pay. It is essential that all debt collection activities are conducted in a lawful manner. Working with a Professional Debt Collector ensures this is done.

Cost effective

A decent debt collection service will save you time. money and keep your stress levels in tact. The time and stress spent chasing unpaid debts should be measured. Your time is precious and constant phone calls and emails are very time consuming not to mention stressful.

Any decent debt collection service provider will have a transparent costs structure. Be ware that not all Debt Collection Agencies do this. Some have hidden pricing structures or ‘drip pricing’ as it is also known. A reputable Debt Collection Agency will be results driven and very clear about what it will cost you. Typically the commission payable can vary from 10% to 50% dependent on the value, age of debt, type of debt and location.

Swift action and faster payment

A results driven debt collection agency (DCA) will be keen to recover unpaid debts as quickly as possible. This can be very much to the instructing party’s benefit. Working with a proficient DCA this must be done is a lawful and compliant manner.

Valuable expertise

Long standing and reputable debt collection agencies will be highly experienced is most aspects of being owed money. As with anything in life, experience is everything. It is very likely that a professional debt collector will have experienced your scenario before. This experience should not be underestimated and it will help your get your debt paid.

A premier DCA can also instigate legal proceedings if necessary on your behalf. This also will be much more cost effective than using a law firm.

Conclusion and thoughts

Pound for pound, working with a Professional Debt Collection Agency will help you save time, costs and liabilities. Also, it is worth mentioning that it will mitigate the stress unpaid debts and invoices can cause.

By going straight to a competent and comprehensive Debt Collection Agency can help save time, cost and exorbitant court fees.

It is also worth nothing that simply by using money claim online to ratify a debt, you will still need a debt collector to collect the debt regardless. Enforcing a CCJ can be a tricky exercise on its own. Working with a proficient and highly experienced Debt Collection Agency can bring untold benefits from start to finish.

It is prudent however to point out that if your debt is in dispute, the Money Claims online maybe more appropriate. There are different types of disputes. There are legitimate ones and then there are the excuses. Using the small claims court process can bear fruit sometimes. Especially if a company is precious about their credit rating.

The debt collection agency or small claims court question is very valid. When taking into consideration the time, effort and funds invested in the collection of a debt, is it worth it overall? Working with a professional debt collection service can bring a multitude of benefits.

Leading Solution

At Frontline Collections, we are well versed in all aspects of Debt Collection. Less than 1% of the cases we take on require court action. For a free appraisal of your case, speak to our experts today for an immediate and frank assessment of your situation. So if you are wondering should i use a debt collector or money claim online, give us a call today.

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