B2B small debt recovery

[Zingzilla]

Can anyone help?
I occasionally have a few small debts owed by my customers that will total a few hundred quid at a time (average £500). I've struggled to find a debt collection company to chase up debts of this size as normally the minimum debt is upwards of a few thousand.
Can anyone recommend a company that specialises in small debt recovery for businesses such as mine?
Any leads gratefully accepted.

 

[maxine]

You could have a chat with Geoff who is a member on here. His website is http://www.urecall.co.uk/

 

[businessfunding]

Are these straight non-payments or complex situations?

We relinquished our licence in the recent change-over but are happy to discuss if all the clients are incorporated businesses

 

[GRDCredit]

I have to say I find it surprising you have struggled to get anyone to take this on (assuming they are B2B debts?)

As mentioned by Maxine have a word with Geoff T

 

[maxine]

Sorry other Geoff.. I always forget about you

 

[GRDCredit]

Sorry other Geoff.. I always forget about you

So hurtful!

 

[Geoff T]

So hurtful!

I gotcha Namesake!

Thanks folks - was away for a conference, but am guessing that's who called this a.m.

FYI - if you have consumer customers on credit - you need CCL cover... especially when chasing them for money... I know a lot of operators in my industry haven't bothered with it in the recent change over... my advice to UKBF members... from now - don't use anyone without a CCL to chase consumer debt... it could end up costing more than you expect...

 

[Geoff T]

Sorry other Geoff.. I always forget about you

Couldn't thank that Max - how COULD you forget namesake?!

tut tut

 

[Jadepolecs]

I know one minimum £750 upwards if that helps ?

 

[CAEDAN]

I know how you feel - being small doesn't mean you have to get used to the con-artists in life ripping you off. One 'cheap' option is to join a credit reference scheme. Equifax for example have a scheme often run through banks whereby for £15 a month you get unrestricted access to records, and can send as many solicitors letters as you like.

This then enables you affect your customer credit rating - which they will want to avoid at all costs, and usually just the logo on your invoices makes them realise you are not the soft one to rip off.

There are those that will not be bothered by this - but then again, with the checking system - you wouldn't be doing business with those types in the first place as you would have known and set up pre-payment!

 

[Neil Bowler]

I gotcha Namesake!

Thanks folks - was away for a conference, but am guessing that's who called this a.m.

FYI - if you have consumer customers on credit - you need CCL cover... especially when chasing them for money... I know a lot of operators in my industry haven't bothered with it in the recent change over... my advice to UKBF members... from now - don't use anyone without a CCL to chase consumer debt... it could end up costing more than you expect...

Geoff, what do you mean by 'CCL Cover'? Consumer Credit Licences ceased to exist on the 1st April. Many Debt Collection Agencies will have applied for and hold interim permission from the FCA (as we do) but this is only needed if they are handling Consumer Credit Regulated agreements. Indeed, the FCA do not wish to regulate firms who do not handle such cases. I'm not sure what point you're trying to make here, particularly as the OP was referring to B2B debts.

 

[Neil Bowler]

Can anyone help?
I occasionally have a few small debts owed by my customers that will total a few hundred quid at a time (average £500). I've struggled to find a debt collection company to chase up debts of this size as normally the minimum debt is upwards of a few thousand.
Can anyone recommend a company that specialises in small debt recovery for businesses such as mine?
Any leads gratefully accepted.

Zingzilla, if you haven't found someone yet, my company may well be able to help you. Please feel free to PM me if you want to discuss.

 

[businessfunding]

Geoff, what do you mean by 'CCL Cover'? Consumer Credit Licences ceased to exist on the 1st April. Many Debt Collection Agencies will have applied for and hold interim permission from the FCA (as we do) but this is only needed if they are handling Consumer Credit Regulated agreements. Indeed, the FCA do not wish to regulate firms who do not handle such cases. I'm not sure what point you're trying to make here, particularly as the OP was referring to B2B debts.

I thought Geoff was fairly clear that he was referring to consumer agreements in that context

There is of course the perennial grey area that 'business' refers to incorporated businesses, not sole traders or parterships

 

[Neil Bowler]

It's just a case of outdated information; he's saying not use anyone without a CCL to chase a consumer debt. No-one has a CCL any more - they don't exist!

We collect a lot of consumer debts for unpaid invoices, rent etc. These are not CCA regulated agreeements and we would not need FCA permission to collect them. (We do hold interim permission though as do have some regulated debts on the books).

 

[Geoff T]

Neil/businessfunding,

Without wanting to have to go back over the innumerable conversations I've been having over the past months about the CCL replacement (or if you prefer) - the Interim Permission from the FCA to continue with certain business activities for "consumers", if you've looked into this as much as I have, you'll also know that the whole system is up in the air... not even the FCA themselves are completely clear on how this will work... some trading/ professional bodies are giving - IMHO - advice that conflicts with what you can read on the FCA policy document (a snappy little 646 page read!) and that has changed from previous info I read just before Xmas...

From what I've seen - it seems clear to me that the term "consumer" can now be applied to sole traders, SME businesses and small partnerships below certain thresholds... and one recent generic term I saw that considered "giving credit" has even removed the "more than 4 payments" definition (indeed I've not seen it mentioned any more)... for most biz I know that covers the majority of their customers and payment terms - but I'd be happy to discuss interpretation by PM (to avoid side-tracking the thread even more!)

IMO - The rules though are quite clear when it comes to debt recovery - if you're not covered, you're at risk... as are your clients... they repeatedly mention debt recovery as one of the industries on their radar - even the Information Commission Office differentiate for DCA's now...(having just renewed my DPA too)

- footnote... I mentioned CCL to give a starting reference point for the consumers out there (sorry - "business owners") - rather than to say later "it used to be this"...