CMR has been successfully supporting clients with debt recovery action for over 28 years. During this time, we have managed to build a wealth of experience and even managed to beat our record and collect over £2 million worth of outstanding invoices in 2018.
CMR Debt Recovery Specialists
CMR’s debt recovery specialists aim to collect debts without the need for legal action using tried and tested techniques in the form of letters, emails and most importantly the telephone calls. CMR’s main objective is to recover payment of a clients’ overdue account in full. However, sometimes it is necessary to negotiate and agree on a payment plan or a settlement figure. In order to support this process in the UK, we must issue a letter before claim, which is the start of the legal process. This is not used in all cases, only in those where the collector considers that the debtor has the ability to pay and needs some strong evidence of our intentions.
Late Payment of Commercial Debts (Interest) Act 1998
This act sets out to assist businesses faced with late payment problems. It does this by adding a number of rules to contracts between businesses. It is important to realise that this legislation only applies to commercial debts; for example, sales to a private individual or consumer. Both parties should be businesses, commercial entities or public sector organisations. Interest is claimed at the prevailing Bank of England rate – currently at 0.5% plus 8%. The rate is listed as the UK clearing bank base lending rate in the Financial Times and is also known as the repo rate. The rate that applies is the rate in force at the end of the day that the payment was due.
As well as interest, the supplier may also charge an amount to compensate for the costs of collecting late payments. The amount of compensation that can be claimed is determined by the outstanding amount as follows:
CMR has been providing Debt Recovery for clients as it falls hand in hand with trade credit insurance. Our managed credit insurance policy allows you to recover the cost of the debt recovery action taken. This is just one of the many benefits of credit insurance. Should you wish to enquire about debt recovery action please get in touch.