Disputed Debts

No matter how efficient your credit management systems are, there will be times when disputes over unpaid debts arise.

As a specialist debt recovery team of one of the UK’s top 150 commercial law firms, our clients benefit greatly from the experience and expertise of Lupton Fawcett’s dispute & litigation team, including some of the leading business ADR mediation specialists. We work seamlessly as an extension to your business. Creatively and positively resolving all types of dispute, from individual small claims to multiple high-value complex debts.

Solving disputes

Our experience means we understand the full range of disputes that can occur, and we will identify the best strategy for resolving disputed debts quickly.

We assess the circumstances of each disputed case, the prospects of success and the risks involved to deliver the most effective and least disruptive solution for your business. We will lead the way.

Your money is our money, so cost-efficiency is crucial to our methods and strategies to resolve disputes and recover debts. We are transparent in our pricing and have developed innovative pricing structures which reflect the commercial realities and the circumstances of each case. Fixed fee options will ensure you know in advance what the cost of the resolution process will be.

We provide bespoke, tailored advice on one-off disputes of all sizes. We use all our know-how to settle disputes quickly and positively for all we work with.

As your long-term partner we will provide ongoing recommendations and ideas on the types of dispute you face, as well as all aspects of debt recovery. We offer unlimited legal advice on disputed debts on a retainer basis, allowing us to develop an even greater understanding of your business. We’re here to streamline your workflows.

As one of the top commercial litigation teams in the country, our wider team know and understand there are more efficient and effective processes than litigation. Our nationally recognised experts have experience in all forms of ADR, including mediation, arbitration, and adjudication. Our clients benefit from our vast experience of resolving disputes with the minimum disruption to their business.

There are occasions where a debtor will seek to counterclaim against you for breach of contract. In these situations, the full weight of Lupton Fawcett’s commercial litigation team is invaluable. We will construct a robust and effective defence against whatever claim your debtor brings.

Our highly trained and experienced tracing experts can provide a complete picture of the financial standing of your debtor in a comprehensive pre-sue report. As well as a full breakdown of assets and adverse information, a pre-sue report can include detailed information about the debtor’s financial activity and daily movements. This information is invaluable in devising the most appropriate debt recovery strategy.

If you would like any more information on any of these tracing strategies, or about debt recovery solutions more generally, contact us today.

Preventing disputes

Prevention is better, and more cost-effective, than cure. LF Debts Solutions review the operations and documentation of our clients to minimise the chances of disputes occurring.

Some simple measures can avoid disputes arising due to:

Unsigned credit agreements – a signed credit agreement creates a legally binding commitment to repay; an unsigned credit agreement creates the potential for a dispute. Our clients’ commercial processes are robust and fit for purpose, ensuring all procedural steps are completed.

Unclear credit agreements – a debtor may dispute a debt if they can claim that they did not understand the credit agreement. Your documentation should clearly set out the terms of the agreement, including repayment conditions and the interest to be charged.

Pressure to sign – a debtor can dispute your claim if they were pressured into signing the credit agreement. Appropriate commercial processes should demonstrate that this was not the case.

Payment terms

One straightforward way to maximise your debt recovery efficiency is to ensure that your payment terms contain clauses regarding:

  • Recovery of debt recovery costs.
  • Recovery of any pre-legal action costs.
  • Recovery of legal costs (including the higher costs involved in complex cases).

You should also take advantage of all relevant legislative and regulatory provisions, such as the Late Payment of Commercial Debts (Interest) Act 1988, which allows interest to be claimed on commercial debts at 8% above base rate, in addition to a fixed sum of between £40-£100.