debt recovery frequently asked questions

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A2 : What do you actually do?
We issue a series of letters to your debtors, firstly advising your debtor that we have been instructed by you to recover your money. If there is no response to either the letters or phone calls, then the file is passed to our Legal Department, who serve a Pre-Legal notice upon which most debtors pay.

If payment or a payment schedule is not agreed at this point we will then utilise our Self Employed Debt Collectors to visit the Debtor’s property or Premises. In some cases we will serve a Statutory Demand in accordance with Insolvency Laws.

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A3 : If I decide on Legal Proceedings, can you help?
Yes. We have our own in house team that work in collaboration with a leading firm of Commercial Solicitors.

For debts under £750 – Should the normal procedure not bear fruits, what we can do is submit a claim form on your behalf, get a judgment and get a Warrant of Execution for Bailiffs to remove goods and monies up to the value of what’s owing to you.

For Debts over £750 – If the debtors fail to pay then we will take the necessary enforcement action. We will serve them with a statutory demand, giving them 21 days in which to pay or they will be either made bankrupt or forced into a compulsory Liquidation. The Court then appoints an Official Receiver / Liquidator to seize the debtors bank accounts, vehicles, property, goods etc to ensure the debt is paid in full.

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A4 : Who decides if the debt is to proceed to Litigation?
We both do. If we fail to resolve the debt with the letters and phone calls, we will normally proceed to Litigation if we think it is likely to produce a positive result. However we are not obliged to do so and may decline to take the matter further if we think it may end in a negative result or we can no longer be of any further help. You may also decide to 'write off' the debt – our Legal Team will discuss this matter with you in detail if your case reaches this stage.

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A5 : What if the company is in Receivership/Liquidation, can you help?
Nobody can make a debtor pay if they really are in Liquidation etc. however, if you have evidence to support Wrongful trading (ie. Bounced cheques, Trading whilst insolvent etc) we can investigate the matter further and make a complaint to the relevant bodies and it may well be that the Directors are rendered personally liable if they are found to have committed criminal offences. Some company's actually send out notices that they are going into receivership but don't actually cease trading, we can check this matter for you.

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A6 : If the Debt is disputed can you help?
Yes, we can often negotiate a settlement on your behalf, you will be informed of any offer of settlement and you can then decide to accept or reject any offer.

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A7 : What information do you need to start recovery action?
The Correct Name of your debtor;
Last known address;
Amount Outstanding;
Copies of any documentation relating to the debt (i.e. Invoices, Bounced Cheques etc).

As a part of our service we will trace your debtor to check their present address and contact numbers, through our extensive tracing databases prior to initiating debt collection of your debt.

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A8 : Why do we have to pay an upfront administrative fee?
We did not used to charge an admin fee but as word spread about our excellent services, we started to get passed all types of Debts that were not even collectable so therefore an introductory administrative fee was necessary to deter timewasters.

In addition, we go to the lengths that others do not and this is directly reflected in our extremely high recovery rate.

In return for a nominal admin fee, you will receive the full service of our highly respected Collections Team and our Legal Teams, who are on all for any further assistance should you require it. This administrative fee is a one off payment as if a small fraction of the legal fees normally charged for undertaking such services.

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A9 : Why should I use a debt recovery firm over Solicitors?
Solicitors even use us and we have references to prove it, as Court and Legal Action are not always as fruitful as you might think. Why pay costly Solicitors fees when we can do everything for a one off low cost fee in a professional and business like manner. Once you try our services, you will never go back to expensive and timely solicitors. We are always mindful of existing business relationships and have a lot of Public Sector clients who are on long term contracts simply because we get the job done, quickly and efficiently.

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A10 : Should we leave it for a few months?
Why leave it for any longer? Your money will be accumulating interest for them in their account and they evidently have not spared a thought for you. Let Federal Management recover your money before it’s too late. It is a simple fact; the longer you leave it, the less likelihood of you ever getting your money back!

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A11 : How do I know you are not like those dodgy debt recovery companies?
Federal Management Limited is a company of utmost integrity. Copies of our licenses can be provided upon request and the many testimonials we have on file from satisfied clients give weight to these facts. Alternatively, please feel free to schedule an appointment at our Head Office in Skelmersdale. Our Directors are always happy to speak to clients and give any assurances required. The fact remains that 99% of Debt Recovery companies are operated by respectable parties such as Solicitors etc and it is a minority that blemish the image of our industry as is always the case.

In addition to the above, Federal Management Ltd are VAT registered and hold licences from the Office of Fair Trading and Data Commissioners Office. We are also respected members of the North West Chamber of Commerce and the Credit Services association.

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A12 : I am worried that using a Debt Recovery company will tarnish our image.
Federal Management Limited are the professionals that are used by the professionals. Our extensive client base ranges from Solicitors and Architects, right through to Mechanics, Builders and even a Premier League Football club! We are mindful of existing Business relationships and carry out our work in a firm but polite manner. Should a special protocol be necessary then we are only to happy to oblige and work with any requirements necessary.