Debt Collection & Legal Fees

[mickeyg]

Am I correct that a client is supposed/obliged to sign an Engagement Letter with a solicitor who is going to do legal work for that client??
Presuming that no such Engagement Letter has been signed is it reasonable to assume that the fees which would be charged by a solicitor in a Debt Collection situation would be based on a % of the funds recovered??

Thanks

 

[Jim Stafford]

A client is not obliged to sign an engagement letter.

However, the solicitor is obliged to send a "Section 68" letter setting out the basis on which he is charging fees. You are expected to either accept or reject those terms.

Most debt collection solicitors would use a blend of a fixed fee and a % of monies collected as the basis for their fees.

Jim Stafford