Debt Recovery FAQs: Everything You Need to Know Before Getting Started
If you’re considering outsourcing your debt recovery for the first time, it’s completely natural to have questions — or even reservations — about the process. Understanding what happens to your debt, and who is handling it, is essential before placing your trust in any third party.
Trust is the foundation of every successful partnership. Unfortunately, debt recovery has developed a poor reputation in some circles — and not without reason. A small number of unethical operators have caused significant harm to clients and debtors alike. Compounding this issue is the fact that the commercial debt recovery industry remains largely unregulated, leaving businesses vulnerable to companies that misappropriate client funds, dissolve, and simply reopen under a new trading name.
At Darcey Quigley & Co, we wanted to be part of the solution. That’s why we took the proactive step of seeking approval from the Financial Conduct Authority (FCA) — a step we were under no legal obligation to take, operating exclusively as we do within commercial debt recovery. We pursued FCA registration anyway, because holding ourselves to the highest possible standards isn’t just good practice; it’s the right thing to do.
Below, we’ve answered the questions we hear most often from clients who are new to debt recovery
Can I charge additional interest and recover my debt recovery costs?
Yes. You are legally entitled to add interest, compensation, and reasonable costs to your outstanding debt. See our Late Payment Guide for a full breakdown of your options.
I want to continue working with my debtor — will using your service damage our relationship?
Protecting your ongoing business relationships is a priority we take seriously. We tailor our approach to safeguard your brand and professional reputation at every stage. In fact, outsourcing can actually help — by stepping in as a neutral third party, we allow you to remain impartial while the recovery process takes place, keeping your relationship intact.
When should I instruct a debt recovery agent?
There’s no single rule, but the evidence is clear: the earlier a debt is passed to recovery, the greater the likelihood of a successful outcome. We consider timely referral to a recovery agent an essential component of any robust in-house credit control strategy.
What can you do that I can’t?
Quite a lot, as it turns out. Outsourcing removes the familiarity between you and your debtor — which can be one of the biggest barriers to successful recovery. Our Credit Management Consultants bring specialist expertise, proven processes, and professional distance that simply aren’t available when you’re handling the matter yourself.
Will I be charged if you’re unable to recover my debt?
No. We will pursue your debt for as long as we believe recovery is achievable. If we exhaust every available avenue and the debt remains unrecovered, we will walk you through your remaining options — and close the case with no fees owed. The only potential costs would be for any optional auxiliary services you choose to use, such as bailiffs, tracing services, or Sheriff Officers.
What if my debtor refuses to pay the interest, compensation, or additional costs?
We work hard to recover every penny you’re legally entitled to claim. While it isn’t always possible to enforce additional costs without further action or legal proceedings, we achieve a 63% success rate in recovering these amounts — which frequently means our fees are covered entirely by your debtor, and our services effectively cost you nothing.
Still have questions?
We’re always happy to talk things through. Whether you have a query about our services or an overdue account you’d like to discuss, get in touch with our team on 01698 821468 or at [email protected]
