Do You Really Need a Solicitor for Debt Recovery?

Our Operations Manager, Michal Shebazyan, shares his thoughts on where solicitors fit into the debt recovery process.

Let's start with an important point: solicitors absolutely have their place.

If you're buying a house, writing a will, defending a criminal allegation, or dealing with complex legal matters, a good solicitor is worth every penny.

But when it comes to recovering an unpaid debt?

The answer is often not as straightforward as many people think.

The £350 an Hour Letter

At Red Flag Specialists, we regularly receive correspondence from solicitors acting for debtors. Many of the letters follow a familiar pattern.

The interesting part is that, in a large number of cases, we already hold evidence showing that the debt has been acknowledged. Sometimes there are payment plan proposals. Sometimes there have been part-payments. Occasionally there are written admissions.

Despite this, we can still receive lengthy legal arguments attempting to explain why the debt should not be paid.

One of our favourites was:

"My client did not have the benefit of my services at that point."

In other words, the debtor admitted the debt before speaking to their solicitor.

You can't help but wonder how much that sentence cost.

Paying Lawyers to Avoid Paying Debts

One of the strangest things we see is debtors spending significant sums on legal fees to avoid settling a debt that they clearly owe.

In many cases, those legal fees quickly exceed the cost of reaching a sensible commercial agreement.

Our approach is always simple. If a genuine dispute exists, we'll examine it properly. If the debt is owed, we encourage both parties to resolve matters without unnecessary expense.

Unfortunately, not everyone takes that advice.

What Happens When It Goes to Court?

If a debtor continues to ignore the issue, the matter may eventually end up before the courts.

By that stage, the original debt is often only part of the problem.

Court fees, statutory interest, legal costs, management time and enforcement expenses can all increase the final amount payable.

The reality is that many debtors who could have settled matters early end up paying substantially more than they would have done at the outset.

Do Red Flag Specialists Use Solicitors?

Absolutely.

The difference is that we use them where they add value.

Over many years, our Head of Legal, Tim Kukalski, and his team have built relationships with experienced, commercially minded solicitors who understand debt recovery.

We don't send them speculative claims or poorly prepared files.

Every case is supported by a detailed chronology, evidence pack, correspondence history and legal analysis. That preparation saves solicitors countless hours and allows them to focus on progressing the claim rather than piecing together the facts.

As a result, we benefit from highly competitive rates and efficient legal support when court action becomes necessary.

Our solicitors know that when a case arrives from Red Flag Specialists, it has been properly investigated and professionally prepared.

The Bottom Line

We're not suggesting that every solicitor acting for a debtor is trying to prolong a dispute. Many are diligent professionals doing exactly what their clients have instructed them to do.

However, we have seen countless situations where debtors spend thousands of pounds on legal fees only to arrive at the same conclusion they could have reached months earlier.

Good legal advice has value.

But so does common sense.

And when a debt is clearly owed, the cheapest solution is usually to pay it—not to spend £350 an hour explaining why you don't want to.