Debt collection solicitors and debt recovery agencies serve primarily the same purpose. Hiring the services of either of these professions should hopefully result in the recovery of your debt. However, you may be wondering what the real differences are between the two services and which is better for your particular needs. Below is a brief overview of the similarities and differences between the two professional debt recovery service providers.

A debt agency specialises in debt collection. Some debt agencies may have their own legal departments to handle those issues that may arise that are best left to solicitors. The debt agency, however, does not have to have debt recovery solicitors on staff. Many debt recovery solicitors work independently or as part of a larger legal firm.

Most debt can be recovered without the assistance of debt recovery solicitors. Because they are often more expensive to hire than a debt collection service, it is better to contact a specialist collection agency first to see if they will be able to help you recover money owed. Most debt collection agencies work on very low fees or are commission based, whereas solicitors will charge their normal rate to work to recover your debt which is a much more expensive exercise.

Something to consider when choosing between hiring debt collection services and a debt recovery solicitor is that often it is possible to maintain a working relationship with a company who has been served a letter by a debt agency on your behalf. If you take a customer to court, however, you almost always lose that working relationship. If the amount owed you is significant enough and you are not worried about repeat business with this client, then choosing to hire one of the many well-trained debt recovery solicitors in the UK would be a wise decision.

If your bad debt case moves to the level of needing to file a claim or statutory demand with the court, then a debt recovery solicitor might be your best option. If you have a high volume of large debt (any single debt that is over $5000), or if you have international business-to-business dealings that have resulted in debt, then debt recovery solicitors might be a better service provider for your business. In cases of small claims, legal advice is often unavailable, so you will want to seek the assistance of a debt collection service.

Sometimes a debtor will try to dispute a claim made by you or the debt collection service working on your behalf. In these instances it is helpful to have the services of a debt recovery solicitor. If the debt is small, a debt collection services provider may be able to assist you. Typically solicitors will not work with smaller debt recovery cases.

The decision to use either a third-party debt collection company or the legal help of a debt recovery solicitor is an important one. Remember that the cost of your debt recovery services should be in line with the amount of debt owed you – you don’t want to pay a lot of money to recover a comparatively nominal debt. In the case of very large debt amounts or international debt, debt recovery solicitors may be your best option.