If the sum due is less that £5,000 we can assist using our Midas Debt Recovery Scheme

What is Midas Debt Recovery?

We recognise the damage bad debts can cause to a business and the difficulties in obtaining payment.

Named after the legendary King of Asia Minor who was famed for turning base metal into gold, this service is designed to convert your bad debts into cash at minimal cost to you.

Advantages to you

• You know precisely how much it will cost in advance. 

• You have a cost-efficient way of pursuing bad debts.

• You can rely upon our expertise and capacity to process your claims quickly and efficiently.

THE COSTS                 

Fixed-fee                      

Our charge for pursuing your bad debt up until the point of judgement is 10% of the amount claimed plus VAT.

Please note that this is payable following the claim being issued, regardless of whether the money is actually recovered.

If following the initial letter of claim payment is received without the need for proceedings to be issued or you decide not to proceed following the letter then we will act for a fixed fee of £50 plus VAT. 

This rate is not applicable if the debt is over £5,000 inclusive of VAT and any interest, statutory or otherwise, which you can claim.

If your claim is for over £5,000 or is subsequently defended then we will agree a fee structure with you at that time.

If your claim is defended then advocacy is likely to be required and therefore the cost of our service will be higher.  There will also be extra court costs involved if the matter cannot be settled and it proceeds along the court-scheduled timetable.

What we will do: 

1.  Draft and send a Letter of Claim compliant with the Civil    Procedure Rules.

2.  Draft, issue and arrange for service of a Claim Form.

3.  Apply for default Judgment where appropriate and advise you further with regard to enforcement.

Recovering your costs

You are entitled to reclaim a proportion of the costs that you pay us from the debtor.  The amount will be added to the debt once judgement is obtained and you will receive the costs in addition to the sum owed to you.  The amount is fixed by the court based upon the amount claimed, as shown below:

Amount of Claim                                     Recoverable Fixed-Costs

Up to £500.00                                                    £50.00

Over £500.00                                                     £70.00

Over £1,000.00                                                  £80.00

Over £5,000.00                                                £100.00

If judgment is obtained then a limited extra amount will be added to the recoverable fixed costs (depending on the circumstances). 

Court fees

These are payable in addition to our costs where proceedings are commenced and are recoverable from the debtor (in the same way as the fixed costs detailed above).

To issue a Claim Form where your claim is for money only and the amount is:

up to £300.00                                                  £  30.00

£301.00 - £500.00                                           £  50.00

£501.00 - £1,000.00                                        £  70.00

£1,001.01 - £1,500.00                                     £  80.00

£1,500.01 - £3,000.00                                     £  95.00

£3,000.01 - £5,000.00                                     £120.00

£5,000.01 - £15,000.00                                   £245.00

£15,001.01 - £50,000.00                                 £395.00

Additional Costs

The general rule regarding all claims under £5,000.00 is that there are no costs awarded other than the fixed-costs except in exceptional circumstances.

In claims involving sums over £5,000.00 the Court has wide discretion, but the usual rule is that the loser pays the winner’s costs.

We will advise you in detail regarding the recovery of costs on a case-by-case basis.