Recovery of Retention Monies

Recovery of Retention Monies

Background:

Adams Legal Partners (ALP) was recently tasked with recovering £20,000 in retention monies from a prominent construction company. In such cases, larger companies often employ various tactics to avoid payment, such as demanding purchase orders or claiming that the work wasn’t signed off.

Debt Recovery Process:

ALP began by conducting a comprehensive asset check to identify the directors and locate the company’s legal counsel. With this information in hand, they proceeded to send a demand to all relevant parties. Surprisingly, they received an immediate response from the company’s legal counsel, who requested a 7-day hold on the matter. The creditor agreed to the request.

Successful Debt Recovery:

Just before the 7-day period expired, the debtor directly emailed the creditor, acknowledging that the payment was due. However, they attempted to neglect substantial costs that were eligible for inclusion according to the Late Payment of Commercial Debts (Interest) Act 1998.

ALP acted swiftly and dispatched one of their debt recovery agents to the debtor’s head office. The agent served a statutory demand to the debtor for the principal debt and the associated costs.

Conclusion:

To everyone’s satisfaction, the debtor promptly paid the full debt on the same day. Although there was a small dispute regarding additional interest, it was ultimately resolved, leading to the successful recovery of the entire debt.

This success story highlights ALP’s efficiency and effectiveness in navigating the debt recovery process. By conducting thorough research, promptly communicating with relevant parties, and taking decisive action, ALP ensured that their client received the full amount owed to them.

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