Contested Debt Recovery

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Dealing with a Disputed Debt

Spratt Endicott has a team of specialist lawyers that handle the debt recovery process professionally, even in the case of defended debt recovery and disputing a debt.

Defended debt recovery refers to the service that deals with debt recovery claims that are disputed by the party that receives the claim.

Wherever possible, we will pursue defended small and fast track claims on a fixed fee debt collection arrangement. However, in cases where this does not apply, we charge a very competitive hourly rate for the work to help keep your costs to a minimum.

You can track the status of your defended debt recovery case online thanks to our 24/7 online service, meaning you can see, at any time, where the case is up to, as well as keeping up to date with its progress. Spratt Endicott understands that disputed debt can be an unsettling and stressful time and so aims to make the process as smooth as possible, keeping you informed at all times.

Occasionally, in the case of disputing a debt, there will be matters that we would advise be referred to our dispute resolution team. At first, this would simply be a recommendation and we would take no further action until we have fully discussed the costs involved and explained clearly how this would benefit you.

Why has my Debt Recovery Claim been disputed?

There are a number of reasons why debtors might have the rights to dispute your attempted debt recovery. The points below might explain a bit more about why the debt you are attempting to recover, has been contested.

• A credit agreement was not signed. As a creditor, you must always ask a credit agreement to be signed as this legally binding document will ensure that the debtor is agreeing to re-pay what they have borrowed. The debt can easily be disputed if there was no credit agreement in the first place.
• If the debtor was under 18 when the credit agreement was signed. You must ensure that whoever is signing the legal credit agreement is over the age of 18, otherwise, it is not legally binding and can easily be disputed.
• If the debtor is claiming that they felt pressured into an agreement. Some debtors may claim that you, or your financial sales representative, pressured them into signing a credit agreement. This might be enough of a reason for them to begin to dispute the debt.
• The debtor didn’t understand what they were signing. The debtor may now be claiming that the information on the credit agreement was not clear and they therefore signed it without full knowledge. Ensuring that you provide clear information on the agreement is key, explaining clearly what the terms of the agreement are, and any sums or interest involved. This lessens the chances of the agreement being disputed.

What happens if my Debt Claim is contested?

If a defence is entered against your debt claim, the case may progress to a hearing or trial at the defendant’s court. However, it is worth noting that even if court action has started, it is not too late to try and reach some form of alternative, pre-legal dispute resolution.

If a debt that you are owed has been contested, your best form of action is to hire a solicitor who is experienced in debt recovery. Using a solicitor will not only help to define your case in legal terms but can also help to identify further action that may be available to you if your debtor is refusing to pay the money that you are owed. Help is at hand from Spratt Endicott Solicitors, so that you do not have to deal with disputes alone. By seeking expert advice at the earliest opportunity, you can help to protect your businesses’ interests and reputation.