Debt Recovery – DCA
Debt Collection Agency or Solicitors?
When you are faced with debtors who simply refuse to pay, you inevitably find yourself asking the question – what next?!
Not being paid money that is rightfully yours is frustrating enough without having to decide on the best course of action to add to your woes.
The first decision is whether to refer the matter to a Debt Collection Agency (DCA) or a firm of solicitors.
In short, solicitors are authorised and regulated by the Solicitors Regulation Authority (SRA). Any complaints made against the solicitor must be dealt with directly in the first instance but if you fail to reach a satisfactory resolution, you can involve the Legal Ombudsman. The SRA also requires solicitors to maintain properly audited accounts and have professional indemnity insurance in place.
DCAs are now required to be authorised by the Financial Conduct Authority and it is important to check that the DCA is registered.
The key difference however is the fact that solicitors are trained, experienced specialists in the field of conducting court proceedings. This means that where pre-action communications prove to be unsuccessful, the transition to issuing proceedings in the county court will be seamless.
DCAs on the other hand will often be faced with the need to refer the matter to a legal team to take over the conduct of the matter which would mean costly delays in processing your claim.
When you instruct solicitors, you can rest assured that the individual who takes your initial instructions will have conduct of the matter through to settlement and as well as the specialist service you will be receiving, you will benefit from knowing that your matter is in the hands of a regulated and authorised body.
If you or your business are struggling with debtors, contact Fairmont Legal’s Debt Recovery department for a free initial consultation. We can discuss the options available to you and advise you as to how to proceed. Call 01204 866597, or email firstname.lastname@example.org.