Case Studies
Recent debt recovery case studies
A selection of recent Recovia cases. To protect everyone involved, client and debtor details have been removed and figures are described only in general terms.
Paid in full the day after a Letter Before Action
The situation: A business client was owed a five-figure sum on an invoice that had been overdue for well over a year. The debtor had been holding payment pending paperwork.
What we did: Before contacting the debtor, we checked the client's evidence and confirmed the correct invoice and the right company. We then calculated the statutory interest and fixed compensation due under the Late Payment of Commercial Debts (Interest) Act 1998 and issued a formal 14-day Letter Before Action.
The outcome: The debtor paid in full the next day, including the principal, statutory interest and compensation, directly to our client. No court action or legal costs were needed.
A disputed account settled within four days
The situation: A business client was owed a large five-figure sum. The debtor had disputed the invoice and asked for it to be cancelled, and an earlier promise to pay part of it had not been kept.
What we did: We served formal notice of our appointment, responding to the points the debtor had raised. We reserved statutory interest rather than demanding it, leaving room for settlement, and agreed every step with the client first.
The outcome: Four days later, the debtor paid a substantial lump sum directly to our client. The client chose to accept it in settlement, preferring a prompt, certain recovery to the cost and delay of pursuing the full balance.
Reconciling a multi-invoice trade account
The situation: A client had several unpaid invoices of different ages on a customer account.
What we did: We worked through each invoice with the debtor's finance team. We took a cooperative approach throughout and did not pursue interest or compensation.
The outcome: Every invoice was either paid or settled on agreed terms, apart from one older item the debtor queried. We recommended requesting payment of that item, but the client chose to credit it as goodwill. The client received a full closing statement.
Managing a Scottish debt portfolio
The situation: A business client needed ongoing help with a portfolio of mostly lower-value unpaid trade accounts, the majority of them in Scotland.
What we did: We act on a monthly retainer. Our letters follow Scottish procedure and terminology (Simple Procedure for debts of £5,000 or less, Ordinary Cause above), and where court action would not be worth the cost we offer affordable monthly instalment plans. Where a debtor company has entered insolvency, we deal with the office-holder on the client's behalf. Read more about debt recovery in Scotland.
The outcome: The client has a single point of contact for the whole portfolio. In one case, a customer who had ignored the client for months replied within minutes of receiving our Letter Before Action, and the balance was recovered in full.
Recovered in full in under four weeks
The situation: A professional services client was owed a four-figure sum that was 21 months overdue. Correspondence with the debtor's accounts team had not produced payment.
What we did: We checked the debtor's financial position, which showed a solvent business with a habit of paying late. We then wrote directly to the person able to authorise payment and agreed a firm deadline, with interest and costs waived if the full balance was paid by that date.
The outcome: The debtor paid the full balance by the deadline, 26 days after we were instructed. No court proceedings, court fees or solicitors were needed.
A practical outcome for a self-employed contractor
The situation: A self-employed contractor was owed just under £2,000 by a limited company, which refused to pay in full and cited a series of deductions.
What we did: We rebutted each deduction in writing and prepared the case for court.
The outcome: The company paid a substantial part of the debt. The client chose to accept it and close the matter rather than issue court proceedings for the balance.
Talk to us about your case
Every case is reviewed before we contact the debtor, and we recommend an approach for your approval. See how our process works, instruct us online or call 01527 369593. No-win, no-fee options are available on suitable cases.
Client and debtor details have been withheld. Every case is different, and outcomes depend on the facts, the debtor's circumstances and the evidence available.
