Quick Moneyclaim question (not LL related) please?

[LesleyAnne]

Is Moneyclaim online available for businesses as well as private individuals? I work for a Pre-school, and we have a child who's parents have fallen behind with fees. Despite atleast 2 written reminders, they are still turning up to drop the child off every day, so we are about to suspend their place until the arrears are paid off - currently £300 and increasing by £40/week, as we were sympathetic to their situation when husband was off work on long-term sickness, but despite various promises since, no money forthcoming.

Our only fear is, if we suspend, they will disappear into the wide blue yonder and we will never get the money back. Can we do a Moneyclaim? Don't want to go down an expensive court route, as we are a registered charity and don't want to waste money if they just end up pleading poverty and we don't get anything back!

Thanks

[Snorkerz]

Moneyclaim is available to you, but it is onl a tiny bit cheaper than the paper route. Once the claim is filed (on paper or online) the fees thereafter are the same.

Fees are here: http://hmctsformfinder.justice.gov.u...rms/ex50_e.pdf

A claim of under £5k will probably be allocated to small claims and the fees to be aware of are:

Claim fee
Allocation fee
Hearing fee

[jasonraffo@hotmail.com]

I would recommend instructing debt collection.... Getting a court judgement is one thing enforcing it is another...I would use court action as a last resort... Also, if the people do not pay after debt collection you may be able to add the full debt collection costs incurred onto their total owing plus interest and late payment fees... Check your contracts to see what you can claim for...If you do get a court judgement and o response , i would also advise of also going for an attachment of earnings order as soon as the time frame will allow. GOOD LUCK!

Regards
Jason

[mind the gap]

@jason : And you are a debt collector, no doubt!

[Darth Wookie]

MTG, I believe jasonraffo has a good point. It's generally unfortunate to impose a CCJ on someone for relatively small amounts of money when a reputable debt recovery company can recoup your cash without the need for enforcement. He's also right in stating that where a debtor ignores the DCA, then a CCJ can be raised for debt and costs.
Not quite sure where MTG's cynicism is based with the response.

[Dan_Manchester]

Not quite sure where MTG's cynicism is based with the response.

I suspect because Jason just signed up and that was his first and only post.

However, it would be interesting to know what the recovery rates were for DCA's...

[Darth Wookie]

I've often wondered that myself. My own experience of using them would suggest about 40% tracing success (sample of 200 debts) however over half of the money recovered goes into admin and fees. Tracing a debtor is the biggest outlay and is payable (in our case) up front. If the debtor then only pays £1 per week, it's a long time before you get your return.
It's cheaper, in some exceptional cases where you know where they live, to get a money order and enforce it through the courts - either bailiff action or garnishing of accounts. Sadly, and infuriatingly, it's often better to write it off and hope the next tenant is less slippery.

[westminster]

Not quite sure where MTG's cynicism is based with the response.

Well, for a start, a debt collector can't conduct a claim against the debtor (and you need to obtain a CCJ before anyone can enforce it), nor can a debt collector use any enforcement method that you couldn't DIY. All a debt collector does is charge you fees on top of the enforcement fees.

Many years ago when I was a novice LL and had my first bad T, and didn't know anything about claiming in the county court etc, I was totally ripped off by a debt collector who charged me hundreds for totally pointless, ineffective 'services'. The debt collector was recommended by a supposedly reputable eviction company, too. I ended up DIYing and winning a claim against T, and enforcing it myself.

And you can trace someone for around £50, so I don't know how that's the 'biggest outlay'.

[islandgirl]

I am also involved in a nursery and we have looked at going to court for unpaid fees. My advice would be firstly
a) tell them their space is suspended IMMEDIATELY. Do not allow the debt to climb
b) write a letter before action to them. This must spell out exactly what they owe and say that you will allow them time to pay the debt and ask them to contact you with an offer of a payment schedule
c) give them time to reply (14 days) - If you do not hear from them proceed to moneyclaim online
d) the process is very simple - just go through the stages online. WARNING - you must be able to prove the debt. If the debtor contests it you will have a hearing and will have to provided evidence. Copies of your register must be available as must the contract signed by the parents. You will have to have it all available to produce for the hearing.
e) do not worry about landing someone with a ccj - it is not your problem! Often the threat of court makes them pay up anyway!
You have their home address - unless they move quickly they cannot disappear
Good luck! If you want to pm me I will help as much as I can