Successful debt recovery in the Building Materials industry
Success for our litigation department
Our Litigation Manager, Ray White reports on a successful recovery: We had a new member join us earlier this year that operates in the Building Material Supplies industry in Rochdale. So far they have asked us to pursue 12 debts though our online Overdue Account Recovery Service. To date they have reported over £82,000 as recovered via that service. However one of their debtors “only” part paid £12k as a result of that service but hadn’t paid the balance. So in late April 2017 our member asked our litigation department to take action on a remaining £5k debt. The debt was owed by a Construction firm and had been outstanding for 5 months. The case was passed to our solicitors for a claim to be issued and following legal action and some negotiation the Member received a payment from the debtor amounting to almost £7.5k. This included the debt amount, CPA’s fee, interest, Late Payment Compensation, court and solicitors costs and even a contribution to the Members subscription. Now that’s what we call a result! The members modest subscription was already only a tiny percentage of their recoveries. Now it was even smaller!
And since that recovery one of their other debtors (a construction company) that was submitted to our litigation department has also paid in full on a £4000 plus debt. That debt was over 7 months old but imagine our surprise and delight when the debtor paid following the Solicitors Letter Before Action. We are sure our member appreciates the service.
Back in January 2017 another Member in the Building Material Supplies industry submitted a £4.7k debt owed by a floor and wall covering firm that was almost 8 months old. Despite the debtor already having a number of unsatisfied CCJ’s recorded against, the Member wanted to proceed. The case was passed to our solicitors for a claim to be issued. Judgment was awarded against the debtor and the Enforcement Officer was instructed. We were delighted when we received a payment from the solicitors amounting to almost £7k. This included the full debt amount, CPA’s remuneration, interest, Late Payment Compensation, court and solicitors costs and a contribution to the Members subscription. Another excellent result!
Other recent successes in Building Materials
The vast majority of our recoveries are achieved without the need to resort to taking legal action. We aim to resolve most debts through our unique Overdue Account Recovery Service. This service resolves hundreds of thousands of pounds every day and is fully included in our members subscription.
Just looking at recent results, we note that a supplier of Building Materials based in Essex asked us to pursue a debt of almost £5k from a customer in Greater Manchester. Their customer was well known to us and we were able to secure payment with just one letter.
A building Materials supplier based in Wiltshire asked us to pursue a debt from a client near Coventry, with a couple of letters, our member had the funds in their account.
Other notable successes
A mechanical engineer logged onto the site yesterday to report that all four of the debts they had asked us to chase just over a week ago had now been paid. In just this one week they had more than recovered their subscription twice over on these debts that they had invoiced in back in March and April.
Last week we also received report that a 2014 debt that we had been asked to chase from a small company in Southampton had been paid. The debtor was technically insolvent and we had gone as far as send a final demand but our member reported that payment in full had been made.
A supplier of industrial coatings asked us to chase a debt of almost £30k from an engineering business based in Northern Ireland. Payment was secured with just one letter. Most debt collectors would have charged a percentage fee but that was included in our members subscription.
One of our members in the logistics business was owed over £20k but a tyre distributor. It took a bit of chasing but it was good to see payment finally reported as recovered yesterday.
And finally a manufacturer in Rugby asked us to chase almost £20k from a Lighting Engineer in West Yorkshire. The invoice had been outstanding over 3 months but we sent one letter at the end of June and payment was reported yesterday.
Do you have some debtors that need prompting for payment by The Credit Protection Association?
We have been successfully Prompting Punctual Payment for over 100 years, Let CPA help you.
James Salmon, Operations Director 4th July 2017