Debt collection for recruitment agencies

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Read articles on debt collection written by Carlo Pegna

Debt collection for recruitment agencies

Master Collections have built a reputation in the industry as the go to debt collector for recruitment debt collection. Indeed we often get asked to collect unpaid commissions and retainers for recruitment agents that are subject to terms and conditions the debtor tries to escape. In some cases the debtor will defend the claim in the courts on the basis that allegedly the recruitment agent breached the contract.

Small Claims Hearings

The small claims limit is set at £10,000 and as a result where the debtor defends the claim for many Recruitment Agents the claim will be allocated to the small claims track. While Small Claims Hearings are far less onerous than bigger claims, on the downside usually costs are irrecoverable. However at Master Collections for business to business claims we claim debt collection costs as per the Late Payment of Commercial Debts (Interest) Act 1998, furthermore our costs are fixed and proportionate to the claim.

The Solution

Master Collections helped a recruitment agent (the agent) win a small claim hearing that was timetabled for 1.5 hours. Despite the volume of paperwork put before the District Judge, she was determined to resolve the hearing within the allotted time and ordered the Agent and Defendant to narrow the issues down to three issues:

  1. Was it a term of the contract that the agent was required to send the defendant six CVs a week?
  2. Did the defendant breach the contract?
  3. Did the defendant give notice of termination consistent with the contract?

With Master Collections help the Agent successfully argued sending 6 CVs a week was not a term of the contract, the Defendant did breach the contract and the Defendant did not give notice of termination consistent with the contract.

Master Club benefits

Master Collections has a 95% success rate at small claims hearings.As a Master Club member you automatically get access to a qualified legal manager who will prepare a small claims hearing at a fixed cost based on the value of the claim. Furthermore you will be represented in court by a Barrister from as little as £275 plus VAT.

Compare this to barristers that charge more than £500 plus VAT, as was the case with the hearing of the Agent where it was noted the barrister that lost the case for the Defendant charged approximately £600 plus VAT. For claims above £10,000 where costs are recoverable irrespective of the Late Payment of Commercial Debts Interest Act, we have a panel of specialist recruitment agent solicitors that charge discounted rates or if you prefer fixed fees.

Want to find out more?

If you are a recruitment agency which is owed money call award winning credit professional and legal executive Carlo Pegna on 01920 481467 for a FREE debt recovery assessment.