Individuals
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- Elderly Client
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Commercial
- Business Start-up
- Commercial Disputes
- Commercial Property
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- Debt Recovery
- Employment
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- Planning
Planning & Development
Property & Construction
Letters Before Action
Letters Before Action (late payment demands) are a cost-effective means of chasing any monies owed to you by any debtors, for example an unpaid invoice. They offer a method of securing debts before making a claim and initiating court proceedings, which may be lengthy and expensive in some cases.
Fixed-fee service costs:
The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses to recover fixed sums in respect of their debt recovery costs. These are designed to reimburse businesses for the cost of instructing a solicitor, sending letters or making phone calls in an attempt to pursue the outstanding debt.
Our fixed-fee letters before action service is set to match the amounts recoverable from the debtor:
| Value of Invoice | Recovery Fee Chargeable to Commercial Customer (debtor) | Holmes & Hills initial costs for letter before action |
|---|---|---|
| Up to £999.99 | £40.00 | £40 plus VAT |
| £1,000 – £9,999.99 | £70.00 | £70 plus VAT |
| £10,000 or more | £100.00 | £100 plus VAT |
As part of this service your solicitor will:
- Calculate any interest and recovery fees due under the Act
- Send a Letter Before Action to your debtor requesting payment of the outstanding sum (plus any interest and recovery fees) within 7 days
- Speak with your debtor over the telephone if they do not respond and attempt to secure payment this way
What if the Letter Before Action does not secure the debt?
If we cannot secure payment at this stage, we will explain any further options that are available to you and discuss their merits before advising you on the best way to proceed.









