Disputed Debt? Do not walk away!

By Damien Grant - Updated on 09 Jun, 2021

 

Too, often we come across clients who have walked away from a disputed debt, thinking that it is too hard and expensive to get paid. This is especially the case where there is some validity for the dispute.

It is the nature of commerce that, sometimes, we make mistakes. Usually, the person we are contracting with is reasonable enough to work through the issue, but sometimes the unscrupulous will take advantage of the situation to avoid paying anything.

Your option at this stage is to accept a pittance for your work or go to court with all the legal costs and, ultimately, risks of a judgement not going your way.

This is where having a partner like Tempest can be so valuable. We will purchase the debt, and agree that, if we get a recovery, we will share a percentage with you. Usually, this is a straight fifty-fifty split, but we are flexible depending on the size of the debt and the degree of dispute that exists.

We bring three advantages to the relationship.

Objective Legal Advice

The first is, unlike your lawyer, we are on the hook for any legal costs. If we want to test the issue in court, we must pay the legal bills. We employ our own lawyers as staff, so the bills are not too expensive, but there is a real cost.

This means, if we think that the case will not succeed, we will not pursue it, but if we think it will, then we do. For our clients, this is hugely valuable. There is nothing worse than running up a large legal bill, only to fail at court. At Tempest, that never happens. If we go to court and fail, well, that is on us, not on you.

Credibility

Sophisticated debtors, and unfortunately there is no shortage of them, understand that a commercial firm is going to find prosecuting a disputed debt is going to be a long, slow, and expensive process.

It is too easy to make unverified assertions to avoid having to pay and forcing your creditor to go through the pain and expense of employing experts and lawyers to argue the point. Many commercial firms simply give up at that point, especially if the value of the debt is lower than the cost of pursuing the matter.

By selling the debt to Tempest, you are sending a signal to the debtor, that a third party has had a look at the case and decided it is worth pursuing. Even if they think their case is solid, the mere fact that someone else was willing to invest resources in recovering the position, gives even the most recalcitrant debtor a moment of reflection. And often a moment of reflection is all we need to get a settlement.

Resources and Experience

We may now know your industry, but we know how to work past objections, real and imagined. We will also take a hard look at the debt we have acquired. Sometimes our clients are certain of their own position. Having us tell them that we disagree, is useful.

In many cases, it isn’t what is fair, but what we can achieve, that matters. Contracts can have gaps in them, especially in the construction sector, and there is always the matter of what we can prove. Experience matters. We know what will hold up in court, how to collate and prepare evidence, and how to present material in a way that convinces your bad debts that it is better to settle than to continue to deny and dispute a debt.

If you have a disputed debt, make contact. You may be surprised at what we can achieve,  please get in touch with us today.