How to Use MCOL to Recover Your Debt and Is It the Best Option For You? - Cobra Financial Solutions Ltd

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There are a range of ways to make a money claim, but claiming for less than £100,000 is likely to result in you being directed to MCOL. MCOL – which is the government’s Money Claim Online service – has been designed as a relatively simple and straightforward way to start a county court claim for a fixed amount of money owed. There are benefits to using MCOL, but it isn’t the best option for everyone.


Who Can Use MCOL?

You can use MCOL if you are claiming for a fixed amount of money and the total is less than £100,000. There cannot be more than one claimant and no more than two defendants, which must be served to an address in England or Wales. Plus, the claimant must be at least 18 years of age and they can’t be eligible for help with legal fees. You can’t use MCOL if you are claiming compensation for an accident or injury, and you can’t claim against a government department or agency.

Though MCOL does simplify the Money Claim Online process for a lot of people, there are downsides to consider. For example, if you make a mistake, you could be faced with delayed legal proceedings, additional costs and time wasted. It can also be a timely process, especially if the debtor refuses to pay and makes a counterclaim.


How to Use MCOL

MCOL is designed to be simple, but there are certain steps you need to take to successfully make a Money Claim Online. The process starts by sending a letter before action to your debtor, providing them with details about the money owed and your intention to take legal action. If they make the payment, you don’t need to do anything else. But, if payment isn’t received, you can start the MCOL process.

MCOL is done completely online and it takes you through the process step-by-step. You will be asked to fill in all of your details, such as your name and address, as well as the defendant’s details. You will then need to give the particulars of the claim, detailing how much is owed to you and why. At the end, you will be asked to check the information. Once you are happy with everything, it’s time to make the payment and submit the claim.

Once you have made a Money Claim Online, the defendant has 14 days to respond. They could choose to defend the claim, or only admit to owing some of the money. If this happens, you will have the chance to respond, with the aim of reaching an agreement that satisfies both parties.


MCOL vs. Debt Recovery Experts

If this sounds like a long and complex process – which it can be, depending on the nature of your claim and the debtor’s willingness to pay – you might want to hand things over to debt recovery experts. At Cobra Financial, we are on hand to recover funds that are rightfully yours. Contact us today to find out more.

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