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Debt Collected In Cyprus On Behalf of a Luxury Interior Design Company

Situation:

We recently acted on behalf of our client, based in Cyprus, to recover a sum of £44,196 owed to them by a British couple residing in the UK. The debt was owed for building works carried out on a property the British couple had purchased in Cyprus.

When our client approached us they had already obtained a Judgment in Cyprus, for the sums owed to them. However, the lawyer based in Cyprus was unable to enforce the Judgment due to the debtor’s assets being based in the UK.

When our client approached us, we explained that we would work this case on a no collection-no fee basis. This was the best option for our client to keep costs low and as they had already spent more than planned on trying to recover the debt themselves this took some of the stress away from them.

Problem:

After sending our initial letter we had no response. This led to our team to carry out some research and traced the debtor. The debtor was a Director of a Company and had recently moved since their last interaction with our client.

We made contact with the debtor at their new address. The debtor explained that they had sent the funds to their lawyer in Cyprus a year prior. At this point, we proceeded to ask if they could provide evidence to support their claim.

Conclusion:

After a couple of days and no proof that the funds had been transferred, the debtor’s lawyer in Cyprus tried to negotiate a settlement of the debt offering £20,000 less than the Judgment amount.

This offer was declined and we continued with our debt collection efforts explaining the methods of enforcement action that would be taken unless payment was made. This included but was not limited to referring the matter to our sister company, Lovetts Solicitors, to obtain a charging order and potentially obtain an order for the sale of the debtor’s property they owned. As a result, we subsequently received payment of the full sum of £44,196 including interest within 30 days of starting the debt collection process.

We understand how frustrating it can be when you feel as though you aren’t getting anywhere with your debt collection. It can be especially difficult when you are trading in different, uncharted territories, to your customer.

Our client could have given up and written off the debt before approaching Guildways but fortunately they didn’t. We have an expert international debt collection team who work on a no collection-no fee basis. We charge a percentage commission only if we can recover something for you. If we don’t recover anything, you don’t pay anything.

If you would like to speak to a friendly member of our team contact us on [email protected] or sign up for free.

04 Nov 2022