What We Do
Guildways will act in the pre-action collection of overdue invoices and for any other ancillary services requested on a no collection, no fee commission basis. Pre-action collection activities include, but are not limited to, letters, emails and telephone calls where we have received the appropriate data.
The collection period will be up to 60 days. Typically our collection cycle will be 30 days for UK based debts and 60 days for International debts.
The period of collection will be extended if a payment plan is entered into with the customer and may be extended if we are in discussions with the customer to resolve a dispute or seeking to agree a payment plan.
What You Do
So that our service for you can be as effective and efficient as possible you agree, by instructing us, that:
- You will notify us promptly of: –
– Any material change to the documents or information provided
– Any new information of any kind
– Any payment received towards or in satisfaction of the debt
- Whilst we are instructed, you will not try to collect or instruct anyone else to collect the debt without our written consent
- We shall not be liable for any loss or damage suffered by you as a result of any collection activity.
- Any amounts payable to us or any agents may be paid out of any money recovered
- You will co-operate at all times with us and if there is any delay on your part affecting our ability to collect the debt we may terminate the collection of the debt immediately and charge you the Close Out Fee.
- Any payments received on or after the date we receive your instructions will be deemed to be due to our efforts and charges will be in accordance with these terms.
If the case is contested, we can discuss with you the cost / benefit in more detail.
Clients will be deemed to accept our charging structure immediately following receipt of instructions, by telephone, fax, post or electronic transfer.
Guildways operates on a no collection, no fee commission basis. The commission rates can be found here.
Commission is payable when:
- a payment is made by your customer or a third party or settlement is reached (whether or not this is as a result of legal proceedings)
- the debt is reduced after we are instructed (for example, a partial credit is given or compromise is reached). Our commission in respect of the reduction will be 50% of the commission that would have been payable if that amount had been collected. Any balance remaining due will then be subject to our full commission rate
Please note that commission will be subject to a minimum charge of £10 plus VAT on payments.
Our fees are payable on any sums paid. This includes any sums relating to VAT included on your debt. In addition, commission is payable on the sum(s) paid regardless of whether we are able to successfully collect the full amount you were seeking to recover from your customer including, but not limited to, the debt, interest and any costs you have sought to recover.
Close Out Fee
Lovetts will not charge commission where they have failed to recover any payments and where we have instructed the client that we have been unsuccessful.
However, to protect the value inherent in the time and effort invested in recovery work, if our instructions in a case are withdrawn before we recommend that it be closed, we reserve the right to charge a Close Out Fee. This is equal to the commission that would have been payable if the debt had been successfully collected. Examples include:
- Associate company to one of your key accounts
- Your customer has already paid and proof obtained
- Where for customer relations you wish to withdraw
- Passed out for collection in error including contra accounts
- Your customer disputes debt and you wish us to stop action
- You wish us to withdraw as you are unable to prove that the customer is liable
- An account is placed on “hold” for more than 30 days.
Legal Action and Disputed Cases
Where you require us to instruct Lovetts Solicitors or a third party agent/lawyer to commence legal action or handle a disputed cases then you will be responsible for all costs and disbursements.
Lovetts disbursements and legal services costs will be charged at the rate appearing in their price list at https://lovetts.co.uk/debt-recovery-pricing/ and their terms and conditions will also apply which can be found at https://lovetts.co.uk/terms-and-conditions/
VAT will be payable at the prevailing rate. Guildways is a trading name of Lovetts Ltd and these terms should be read in conjunction with our Terms of Business of at https://www.guildways.com/terms-and-conditions