Debt recovery after the High Court’s Mazur ruling: why pre-litigation collection now matters more than ever
What happened — in plain English
In Mazur & Stuart v Charles Russell Speechlys LLP [2025] EWHC 2341 (KB), the High Court confirmed that non-qualified staff cannot “conduct litigation” — even if supervised. Only an authorised (or legally exempt) person may take the formal steps that amount to running a court case.
see our previous blog https://cpa.co.uk/high-court-confirms-only-qualified-solicitors-can-conduct-litigation/
For high-volume debt recovery models that rely on “litigation executives” or similar roles, this is a big shift. It narrows who can do the work and raises the compliance bar. Translation: litigation will be tougher to run and more expensive to resource.
Bottom line for SMEs: pushing overdue invoices into court just got slower, riskier, and costlier. The smartest move is to get paid without resorting to legal action.
Why this raises the bar (and costs) for litigation recovery
- Staffing constraints: Firms must ensure authorised fee-earners take the key litigation steps (issuing proceedings, signing pleadings, directing case strategy). That typically means more senior time.
- Regulatory risk: If unauthorised staff cross the line, both the individual and the employer can face criminal and regulatory consequences. Opponents may also challenge validity and costs.
- Operational friction: High-volume dockets will need tighter supervision records, clearer role boundaries, and re-signing of documents by authorised persons. Expect delays.
- Cost squeeze: More authorised time + more control checks = higher cost to litigate and less predictable recoveries for creditors.
What counts as “conducting litigation” vs “support”
Conducting (authorisation needed): issuing claims, signing pleadings/statements of truth, taking strategic decisions, assuming responsibility for the case.
Supporting (okay for non-qualified staff): drafting under review, bundling, scheduling, clerical steps, admin liaison — without assuming responsibility.
The dividing line is who exercises professional judgment and signs off.
What this means for your cash flow strategy
Legal action should now be the last resort in every sense (if it wasn’t already). If your working capital model assumed you could flip late accounts into quick, low-cost claims, you’ll need to re-weight towards early intervention and firm pre-litigation pressure.
The winning playbook (post-Mazur)
- Front-load prevention: credit check customers, set sensible limits, and have in place ongoing monitoring to avoid shaky payers. When disputes and queries arise, do everything you can to resolve and answer them directly with your customer rather than pass it to the lawyers.
- Tighten terms & triggers: crystal-clear payment terms, automated reminders, early late-payment charges (where lawful), and prompt escalation.
- Professional pre-legal recovery: structured, reputable third-party pressure that preserves goodwill yet compels payment.
- Escalate to litigation selectively: where the debt, evidence, and debtor profile justify the higher threshold — and with authorised litigators.
How CPA helps you get paid before court (and keep costs down)
Since 1914, CPA has specialised in ethical, efficient, economical collection — designed to make court action the exception, not the plan.
- Creditcare reports & monitoring
Know who you’re trading with, set sensible credit limits, and get alerts when a customer’s risk changes — so you can act before an invoice goes bad. - Overdue Account Recovery (OAR)
Our proven letters and emails direct your customer to pay you directly, protecting your relationship. This resolves over 80% of referred accounts — without you paying a commission per case and without us inserting ourselves into your customer relationship. - Fixed annual subscription
Unlike others, CPA includes credit info, monitoring, OAR and extras (like address verification) in one tailored, fixed fee — no surprise costs as volumes rise. - When litigation is truly needed
For the minority that resist, we can escalate via our collections department and ensure any formal steps are handled lawfully by authorised professionals — fully aligned with the Mazur position.
With litigation now heavier and pricier, CPA’s model delivers what you need most: cash in, court avoided, goodwill preserved.
Practical checklist for finance teams (use today)
- Review your aged debt policy: build in a CPA OAR step before you even consider issuing.
- Tighten your credit vetting: run Creditcare checks and set credit limits; add monitoring for key accounts.
- Escalate earlier: don’t let “polite chasing” drift to 60+ days — refer stubborn debts to CPA at day 21–30 (or your chosen trigger).
- Document everything: terms served, reminders, promises to pay, disputes — it all supports pre-legal leverage and the resolution of any eventual claim.
- Reserve litigation for high-value, asset-backed or reputationally sensitive cases — and ensure authorised conduct throughout.
FAQs we’re already hearing
Will debts still get paid without court?
Yes — most commercial late payers respond to firm, professional pre-litigation action when it’s persistent and credible.
Could litigation timelines slip?
Expect more careful review and sign-off by authorised fee-earners; that can add time. Another reason to collect early.
Let’s improve your cash flow now
Boost recoveries without resorting to litigation. Keep goodwill. CPA’s Overdue Account Recovery service can do just that.
Call Peter Uwins (National Sales Manager): 020 8846 0000 (business hours) or Email: nsm@cpa.co.uk
Got a single nightmare debtor and want a one-off? Ask about our no-win, no-fee commercial debt recovery via debt purchase on recourse: 020 8846 0000 or debtpurchase@cpa.co.uk