Debt collection in the United Kingdom
How to recover a commercial debt from a debtor in England and Wales
The United Kingdom is a strategic market for Italian exports, with frequent commercial relations between companies of various sizes. However, procedural and regulatory differences compared to Italy make it complex to recover a debt from a British debtor.
In England and Wales, especially in London and other large cities, legal fees are substantially higher than in Italy, so it is necessary to carefully evaluate the cost-effectiveness of debt collection actions.
Legal action for international debt collection in the United Kingdom
A creditor wishing to take action in England and Wales can rely on several procedures:
- Letter Before Action: this is a mandatory step before starting legal proceedings, as required by the Pre-Action Protocols.
- Small Claims Track: for claims up to £10,000, with a simplified procedure and limited recovery of legal costs.
- Fast Track: for claims between £10,000 and £25,000, with application of the “loser pays” rule, but with fixed and limited legal costs.
- Multi Track: for claims over £25,000, with a more flexible procedure and full application of the principle of the losing party paying the costs.
- High Court: for cases worth more than £100,000 or of particular complexity.
Why rely on an experienced lawyer for debt collection in the United Kingdom
The English system imposes specific documentation and transparency requirements between the parties, in addition to compliance with Pre-Action Protocols. Furthermore, the strategic use of procedural and precautionary measures can determine the real possibility of recovering the debt.
UrsusNetwork offers specialized legal assistance in international debt collection and supports companies in identifying the most appropriate procedure in England and Wales, reducing risks, time, and costs.
If you would like to learn more about the main features of the debt collection system in the United Kingdom, please refer to the Practical Information below.