The court provides a free mediation service for disputes over money claims for £5,000 or less. Mediation is a way of negotiating an agreement with the help of an impartial third person, without the need to go to court.
The cost of using the service is covered by the court fees which would be paid by the person making the claim.
Mediation can be beneficial for the following reasons:-
- quicker – a session can take about an hour and you won’t have to
- wait for months for a court hearing
- easier to use – it can take place over the phone
- less formal – it doesn’t involve a judge or a trial
It could also save you money – you can get some court fees paid back if the mediation is successful. You will need to give at least seven days’ written notice to the court before the date of the hearing to get a full refund.
If you choose to use small claims mediation, the mediator, a member of staff from the court, will contact you and the other side to arrange an appointment. Most appointments are carried out over phone. This will save you the cost and trouble of travelling to a court.
If you’d prefer to discuss the problem in person, you can meet the mediator and the other side in a room at a local court. Mediation usually takes about an hour, but can be longer if you need more time. The mediator will give both sides the chance to have their say. They won’t decide what you should do, like a judge would, but will help the two sides find common ground and suggest ways forward.
If the mediation takes place over the phone, the mediator can ring both sides with offers and counter-offers to settle until you reach an agreement.
You instruct Veritas Legal UK free debt recovery to recover a commercial debt from a business customer. We add late payment interest and compensation to the debt amount, which the debtor pays. The compensation and interest is our fee, leaving you with the original amount you claimed from the debtor, less the VAT on our fee. Last year, over 93% of our cases were settled this way using free debt recovery services.
If the debtor doesn’t pay after you instruct us, we can instigate court action under the Late Payment of Commercial Debts (Interest) Act 1998. This is the point when costs will be incurred. Before we do anything we’ll let you know the costs of continuing debt recovery action. No costs are incurred without your express authority, so you remain in total control. We make every attempt to recover these costs as part of our debt recovery services.
Your debtor may dispute the debt. If you choose not to instigate court action, or the debtor is unable to pay, our initial letter before action, and all associated contact with the debtor, is completely free of charge. You incur no charges whatsoever.