04: Taking action to recover debts

If a customer ignores reminders to pay, you should always take all other reasonable steps to discuss the situation with them before resorting to methods like using a debt collection agency or taking legal action.

Debt collection agencies can be a fast way to recover a debt, and the agency can instruct solicitors on your behalf if a customer continues to refuse to co-operate.

Legal action can be taken through either:

• The small claims track (usually claims of under £5,000).
• The fast track (usually claims of £5,000 to £15,000).
• The multi-track (usually claims of over £15,000, or more complex ones).