A lot of people make the mistake of assuming that only individuals can be taken to small claims court, but that is not actually the case. You can actually take a company to small claims court, and this is something that many people who are owed money do. In the UK, a small claims court tends to deal with problems that are related to services. This could be an unpaid invoice, a debt or a problem with repayments. It’s also common for refunds for goods and services to be handled in a small claims court. If you are owed money by a company and you want to take them to court, it’s a small claims court that you will go to.
Below, we have detailed the pros and cons of small claims court, and why you might want to consider debt collection services as an alternative.
Pros and Cons of Small Claims Court
There are pros and cons of small claims court, and weighing these up is key to deciding if it’s a route that you want to pursue. Small claims court can be effective for simple claims of up to £10,000. It can be a quick, simple and straightforward way of getting back the money that you are owed. However, this is not always the case with claims that are a little bit more complex.
One of the main downsides of going to small claims court is the long waiting times, and it can take a considerable amount of time for any progress to be made with your case, especially if the court is dealing with a backlog of cases. It’s often quicker to pursue the debt via a debt collection agency. You might also have to pay costs associated with your claim, or you might not receive all of your money, even if you win. Though there are certainly benefits of taking a company to small claims court, there are certainly downsides.
Should I Take a Company to Small Claims Court?
Deciding to take a company to small claims court can be complex, but there is another option – debt collection services. At Cobra Financial, we offer a wide range of debt collection services, including face-to-face debt collection and business debt recovery. We understand how much-owed money can impact you, which is why we work tirelessly to recover your funds as quickly and effectively as possible. Instead of having to navigate the often lengthy small claims court process, you can hand everything over to Cobra Financial, and focus on other aspects of your finances.
To find out more about debt collection services, or to speak to a helpful member of the Cobra Financial team, contact us today.