When recovering a debt through the courts, you have to pay a fee to the court to issue your claim. This fee can be added to the debt, but it is still an upfront cost that must be paid.
On 9 March 2015 these issue fees are increasing for all debts of £10,000 or over to a flat rate of 5% of the debt (capped at £10,000 maximum fee). Legal organisations representing solicitors, barristers and other debt recovery professionals have fought against the changes on the grounds that they reduce access to justice for individuals and small businesses, but so far without success.
The fees in detail
|Value of Claim (£)||Old Fees||New Fees|
|Up to 300||35||35|
|300.01 – 500||50||50|
|500.01 – 1,000||70||70|
|1,000.01 – 1,500||80||80|
|1,500.01 – 3,000||115||115|
|3,000.01 – 5,000||205||205|
|5,000.01 – 9,999||455||455|
Fees are reduced by approximately 10% if claims are issued online.
If you have a debt to chase, particularly one over £10,000 then please contact us for a free 30 minute consultation. If you wait until 9 March you will miss the lower fees and pay more for the same recovery.
5 March 2015