Need advice for DH on recovering a debt

[Mmmmcheese]

DH runs a small IT business and has a problem with a new client who is refusing to pay an invoice.

The client calls up DH and needs urgent help on his IT systems. DH explains what is needed on the phone, makes sure client understands costs involved and then drops everything to help this client. Nothing in writing as it was so urgent.

DH invoiced client back in Oct and been chasing payment ever since. Client now saying costs were never agreed and he's not going to pay the invoice and if DH wants to get lawyers involved then "go ahead".

What can DH do? He has set it all out in an email to the client and explained everything on the invoice (and cost is very reasomnable by the way, DH prob only just covered his costs, not a big margin) but client refuses to respond. Client is obviously hoping DH thinks is too much hassle to chase him.

Makes me so angry! Is so dishonest. What can we do?

[Collaborate]

Small claims court.

[Collaborate]

Oh, and for the future he should draw up a terms of business document and email that to all customers before he helps them.

[Mmmmcheese]

Does he need a solicitor or can he represent himself at small claims court? Invoice is for 2000 and he can't really afford a solicitor.

[keli5325]

You can use www.moneyclaim.gov.uk/web/mcol/welcome

and see www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Makingacourtclaimformoney/DG_195118 for the guidance

Good luck

[mumblechum1]

Debts of under £5k are generally dealt with in the small claims court.

But as Collaborate says, he should get a general T&c letter drawn up and email that over in future, with somehting in writing to confirm at least an estimate of costs.

[Mmmmcheese]

If DH loses might he have to pay costs?

[keli5325]

You have to pay a court fee:

Fees for claims using a court or Money Claim Online
claim amount if you make a claim through a court if you use Money Claim Online

up to £300 £35 £25
£300.01 to £500 £50 £35
£500.01 to £1,000 £70 £60
£1,000.01 to £1,500 £80 £70
£1,500.01 to £3,000 £95 £80
£3,000.01 to £5,000 £120 £100
£5,000.01 to £15,000 £245 £210
£15,000.01 to £50,000 £395 £340
£50,000.01 to £100,000 £685 £595

If the defendant says they do not owe the money the court will let you know and you will need to fill out an allocation question for a hearing. You will have to pay another fee:-

You will have to pay another court fee if the claim is worth more than £1,500:

?claims over £1,500 in the small claims track: £40

[prh47bridge]

You will have to pay a fee but your husband can claim that from his client. You will not have to pay the client's legal costs even if you lose. Equally, you will not be able to claim your own legal costs even if you win. You do not need a solicitor for this - part of the idea of the small claims court is that you should do it yourself which is why costs are not awarded.

[Mmmmcheese]

Thanks that's so helpful and a big relief about the costs!