Bad Debt

Ruddock1980 Registered Posts: 24 New contributor 🐸
Hi All

Wondered if you could give me some advice my friends dad is a self employed builder he did some work totalling £3100 about six months ago the company is refusing to pay, he contacted a debt collection agency and paid then approx £600 to collect on his behalf but they have now come back and said that he should go to the small claims court to collect the money should he do this at a cost of £500 as the lady who runs the company apparently has a habit of putting the company into liquidation??


  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    Money Claim Online - take a look at their website. I have used it and it is a relatively cheap way to get your money, or at least a CCJ to the person who hasn't paid!
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    I didn't think small claims court costs £500, is this right?!
  • truecockney
    truecockney Registered Posts: 94 Regular contributor ⭐
    I tend to agree with PGM there. Small Claims Court can't cost as much as that as some claims probably won't even reach that level!

    You could always contact Thomas Higgins. They charge a minimal amount to start debt chasing so even if he gets nothing, he doesn't lose out on too much either.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    It used to be about £30 for a small debt (£150 ish) and then rising with the amount. There are then additional costs if it goes to bailiffs etc, all costs recoverable from the debtor. I used it very successfully against a client who owed me £150 - it ended up costing him £280 with all the costs.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Small Claims is NOT always that effective.
    So you get a CCJ. So what? If the debtor doesn't care, they won't pay, and then you have to pay even more to try and get the CCJ enforced. With some people it just isn't worth it.

    I never know what the right answer is, but stick a question here - there are some very good folks who give good advice.
  • Caspar
    Caspar Registered Posts: 12 New contributor 🐸
    A builder client of mine was in a similar situation, he had even purchased the bathroom suite and this cost was included together with his labour and other materials. As the customer was very convincing at picking fault with an otherwise acceptable job, the amount the court settled on, was only just over the cost of the bathroom suite. My client had already incurred solicitors costs, and the small claims fee, and put this together with lost work on the day he attended, and the travel etc. He felt afterwards that it was a disappointment. The stress it caused him with the to-ing and fro-ing wasn't worth while.
    Hope this is of help
  • keane155
    keane155 Registered Posts: 404 Dedicated contributor 🦉
    Small claims is not likely to cost £500. Some people don't really care about getting a CCJ, but I suppose that getting one against the company may help. May also be worth having a look into high court enforcement of judgments.
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