What is the advantage of using solicitors instead of a Debt Collection Agency (DCA)?
Jeremy Boyle explains the advantages of using solicitors over a debt collection agency DCA).
Solicitors are authorised and regulated by the Solicitors Regulation Authority and are required to maintain a properly audited client account. They must also have professional indemnity insurance.
DCA’s are not so regulated
In addition Solicitors can provide a seamless transitional service in the collection cycle from pre-action communications to the debtor and thereafter they can take court action by issuing legal proceedings in a court of law.
If you use a debt collection agency they are not authorised to issue court proceedings. This is because it is an offence to do so under the Legal Services Act 2007.
Accordingly if your debtor refuses to pay, the DCA will have to hand your file back to you and such a delay will inevitably send the wrong message to your debtor and lead to delay in collecting your debt.
- only solicitors can commence legal proceedings in a court of law;
- only solicitors are authorised and regulated by the Solicitors Regulation Authority;
- only solicitors are obliged to maintain professional indemnity insurance;
- only solicitors are required to have their client account audited pursuant to the Solicitor Account Rules.
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