A lot of people understand that going to small claims court can help to recover a debt, but that doesn’t mean a win is guaranteed. There’s an obvious reason to choose going down the small claims court route; if you win, you won’t pay anything. However, it’s important to know what you risk if you don’t win. For a lot of people, going to a small claims court is risky. You run the risk of losing the case, losing your fees and having to pay expenses.
You Lose Your Fees
If you lose in a small claims court, you lose a multitude of fees, including your standing fee. This could be anywhere from £30 to £455. Plus, there’s also losing the £40 court allocation fee and up to £355 in hearing fees to consider. This means that losing in a small claims court can be an expensive experience, especially once everything is added together.
You May Pay Expenses
You might also have to pay court fees if you lose, which is around £90 per day. If the case is one that goes over a number of days, this amount quickly adds up. It’s also possible that you will be asked to pay the expenses for the other side, which includes things like the cost of travel and expert opinions. Depending on the circumstances, this could total more than you were owed in the first place, leaving you significantly out of pocket.
You Can Win But Still Lose Out
If you go to a small claims court, the aim is always to win. However, even if you do win, you could still lose out in the long run. The defendant has 14 days to pay what they owe you, but there are many cases where the defendant loses the case but doesn’t pay. This leaves you in the same place you started, without your money and starting a new claim. Taking them back to court can be stressful, tiring and expensive.
The Alternative to Small Claims Court
Luckily, there is an alternative to small claims court. If you choose Cobra Financial, a debt collection agency with a fixed fee, you don’t have to worry about the costs and stress that comes with losing. It’s a quicker, simpler and less complex resolution. Instead of navigating the often long and complex small claims court process, you can hand everything over to debt recovery experts. We work quickly, effectively and with your debt at the forefront of everything we do.
To find out more about how Cobra Financial can help you to reclaim a debt without involving a small claims court, get in touch with our experienced team or give us a call on 0151 526 4222. Regardless of how large or small your debt, we work tirelessly to recover what’s rightfully yours.