No-win no-fee debt collectors for debts less than £2k

[Baretto]

Hi

Can someone kindly point me in the direction of a company that can provide debt collection on a no-win, no-fee basis for debts around £2k?

I have a few unpaid CCJ's which are about £2k each, I have emailed a few collection companies, but they stop responding once I have told them the CCJ value.

I assume a lot of debt collectors will only work with larger debts.

Thanks

 

[Chris Ashdown]

The dept collector's are doing the job to earn a living, chasing sub £2000 debts is a waste of their time, I assume you want to pay them a tiny amount of money to help with their office and staff overheads.

Why dont you take court action yourself

 

[Newchodge]

No win no fee for debts less than £2,000 is not a valid business model. How many successes would they need to justify time spent on the unsuccessful cases?

 

[Mark T Jones]

No win no fee is a risk/ reward to the collections company - and the rewards here definitely don't justify the financial risk (if anyone does agree to do it, they will only send a few ineffectual letters)

Decide how determined you are to collect and set out a clear course of action.

Key question- are these debtors individuals or limited companies?

 

[Lisa Thomas]

Hi I might know someone - please dm me if of interest/still required.

 

[JRobson]

NWNF is definitely viable on a £2,000 debt. If you work enough cases, a minimum debt value of £500 is fine as a guide for taking on cases. Remember most NWNF firms take at least 10-25% on collection.

However, I don't know of any that take on CCJ enforcement under NWNF, just the pre-legal work (i.e. before getting a CCJ). They will want administration costs to get a CCJ enforced. You can "transfer up" a CCJ to the high court, at which point you can instruct high court enforcement agents. However, then you are talking about additional fees and the possibility that the enforcement fees dwarf the debt and some firms might not be OK taking this on.

 

[Newchodge]

NWNF is definitely viable on a £2,000 debt. If you work enough cases, a minimum debt value of £500 is fine as a guide for taking on cases. Remember most NWNF firms take at least 10-25% on collection.

However, I don't know of any that take on CCJ enforcement under NWNF, just the pre-legal work (i.e. before getting a CCJ). They will want administration costs to get a CCJ enforced. You can "transfer up" a CCJ to the high court, at which point you can instruct high court enforcement agents. However, then you are talking about additional fees and the possibility that the enforcement fees dwarf the debt and some firms might not be OK taking this on.

£500 debt with NWNF taking 25% is £125 maximum income for each succesful collection. Assume a success rate of 10% and an expense rate of 20%.

100 NWNF cases taken on gives an income of £1,250 and expenses of £1,000, so potential profit for 100 cases is £250. Doesn't sound like a viable business to me.

 

[MikeJ]

Thread is a year old.

 

[Newchodge]

Thread is a year old.

Thanks. Thread closed