Chasing monies from individual- debt help contacts?

[Crocus]

Hi there, very happy chasing debts from companies who procure us but bit unsure with the legal requirements around individuals.

Individual client part paid a June invoice in September, the invoice was for 2 stages of a project and he paid for the later stage that couldn't have happened without the former.

We've been chasing ever since, but he's been away on and off and pleading family issues etc. However we recently discovered that he has continued the project without us, which is disappointing but our remaining services were only reactive and advisory, but this needs clarification.

We gave him notice 2 weeks ago that unless he confirms his intention regarding our services for the final stage as we quoted, since he appears comfortable to continue alone we shall terminate the contract.
We also gave a weeks notice to clear payment or action would be commenced.

I chased once I knew letter had been signed for- run around again saying will deal with on Monday.
Well of course he hasn't and I was setting up the Thomas Higgins letter when I read that apparently I should have signposted him in writing towards debt advisory, given him 14 days to confirm whether he was using debt advice and if I didn't do that my claim may be rejected if it gets to small claims!

Am really concerned now that I have to now write another letter, telling someone more wealthy than our whole business that he could take debt advice- have to wait another fortnight before I can commence action or he takes the debt advice opportunity to spread the remaining £1000 out over months.

Is this signposting to debt advisory mandatory?

 

[Berics Accounting]

The rules surrounding debt collection can be very much 'open to interpretation.' In my experience, it is always best to state your intentions from the start, e.g. whether you intend to charge interest on the amount owed, whether you intend to issue court proceedings, etc. Whilst its irritating, you will be far better off covering all arguments before you take things further. I do have a pdf document on credit control I'm happy to send to you which may help, (I'm a new member so i cant post weblinks.) In addition, I also have some standardised letters you can use, just filling in the blanks. I would say the most important thing would be to ensure you keep an audit trail of all communication. Alternatively, you could consider employing a debt recovery agency. I recently stumbled across a news article about a new recovery agency called Commercial Recoveries. I have no personal experience with them however, on their level 1 service they work on a 'no win, no fee,'

I hope this helps.

Jon