Debt Recovery Case Studies
Debt Recovery Services
Please find below our Debt Recovery Case Studies which provide feedback and success stories from past clients.
Recruitment Company, Temporary Job agency
Market: Industrial, Hospitality & event Sectors
Issue:
- Client had a number of outstanding debts from customers, with some disputed
- Account names in the wrong legal entity
Solution:
- Improve the initial onboarding process for new customers
- Contact the customers and credit check whilst on the phone using company registration number and legal entities
Result:
- Successfully recovered over 90% of debts passed over to CMG UK for collection
- Resulted in collection of more than £200k that they had been unable to collect themselves
- Less accounts are escalated in the wrong legal entity
PR Firm
Market: Retail health supplements
Issue:
- Client was owed £41,000 of which, 12 months earlier £10,000 was agreed to be converted to shares however those shares had failed to materialise.
Solution:
- A detailed Letter Before Action was sent to the debtor confirming that, as no shares had been received and time was of the essence when issuing shares because of their fluctuating values, the agreement for the shares as part of the debt was withdrawn.
- There was much subsequent negotiation that failed to resolve the issue despite out strong recommendation the debtor gets legal advice as they seem to be misunderstanding some basic contract law principles.
- Court action was issued, the defendant filed a spurious defence.
- Our solicitor confirmed to the debtor that we would apply for summary judgment and would most likely be successful, all costs would be attributed to the debtor
- The Debtor eventually got legal advice and agreed to pay the balance in full plus interest over 4 months.
Result:
- A Tomlin Order was drawn up, signed by the debtor and submitted to the court for endorsement. The full debt and interest was paid in line with the Tomlin Order.
Training provider
Turnover: £4.5m
Issue
- Considerable outstanding debt
Solution
- Offered our third party debt recovery service
- Provided regular updates regarding progress
- Negotiated with debtors on our client’s behalf to resolve disputes and gain payment
Result
- Successfully recovered 90% of debts passed over to CMG UK for collection
- Resulted in collection of more than £130k that they had been unable to collect themselves
- Client has greatly improved cash flow, and under late payment of commercial debts legislation, didn’t have to pay a penny, the debtors paid for our services
Mechanical and Electrical Contractor
Market: Construction | Turnover: £26m
Issue
- Client had problems getting outstanding retentions paid from main contractors
Solution
- Used experience in the construction industry to effectively negotiate payments with their clients’ quantity surveyors
Result
- Collected £36k in unpaid retentions for our client
Recruitment Company
Permanent Placements | Market: Surveyors, Solicitors
Issue
- Client had a number of outstanding debts from a few customers, with some disputed
- Our client had invoiced for an introduction made between their customer and a job candidate; the customer subsequently used ‘behind your back’ tactics to hire the candidate without clients’ knowledge
Solution
- The outstanding debt was passed over to CMG UK for recovery
- Analysis of client’s terms and conditions found that they were entitled to payment from the introduction of the candidate to the company, disputed the fact the company hired the candidate at a later occasion
- A letter before action was sent to the debtor showing all documents that would be relied on if the legal proceedings where issued proving that there was no doubt that our client was entitled to payment in full
- The debtor paid the full invoice value however refused to pay interest, compensation and debt recovery fees. Court action was started to recover these costs, the Judge was requested to strike out their spurious defence as the principle debt had been paid in full
Result
- The debt was paid in full
- The debtor paid the additional costs and interest after application to strike out the spurious was made. They did not wait for the Judge’s decision as it may have resulted in a County Court Judgment against them
- Client proceeded to bring CMG UK on as their outsourced credit control team so that we could use our expertise to reduce the time taken in collecting invoices and resolving disputes
Roofing Contractor
Market: Sub-Contract and Construction
Issue
- Client was owed £115,960 and had not been successful in collection the balance themselves
- Wanted quick resolution of the issue
Solution
- CMG UK were brought in to add greater impact to the matter
- A letter before action was sent to the debtor showing all documents that would be relied on if the legal proceedings where issued showing our client was entitled to payment in full
Result
- After much negotiation using contractual information as leverage, our Client decide to compromise and accepted payment of the principle debt only, to ensure quick resolution
- Our client received 100% of the principal debt