Intro to Athena Collections – BM

Should I use Athena Collections?

That’s a decision only you can make, we can only give you the information to allow you to make an informed decision.

✓ Athena Collections is a Multi Award Winning Debt Collection Agency and the only one in the UK with more than 90+ ALL FIVE Star Reviews

✓ With over 20yrs of experience, we are authorised and regulated by the Financial Conduct Authority and proud members of the Credit Services Association

So, just to be upfront and to clarify...

We help you recover the money that you are rightfully owed and restore your cash flow, take away the stress and give back your valuable time to concentrate on matters that are more important to you.
✓ No Collection, No Commission
✓ Commission rates from as little as 5%
✓ No contracts to sign
✓ No sign up fees

We work on a No Collection, No Commission basis which is different to a No Win, No Fee.

See our post about the differences between the two types here.

The commission rate we will offer you will vary on a case by case basis as it depends on a number of factors…Such as, age of debt, size of debt, volume of debts, and type of debt.
➢E.g. – The older the debt, the higher the commission rate, the larger the debt in value, the lower the commission rate, certain debt types are harder to collect than others.

We don’t do a ‘One Size Fits All’ as we want to offer our most competitive rate. We believe in giving exceptional value in exchange for fair remuneration. Ultimately you will want us to collect your debt and therefore we need to be incentivised to do so.

To clarify...

‘No Collection, No Commission’ Versus ‘No Win, No Fee’

• No Win, No Fee is what it says on the tin – i.e. you will not incur any costs whatsoever unless a recovery is made

This typically means you are paying a premium commission rate on the basis that the agency will, in theory, do whatever it takes to collect the debt, including tracing, litigation, enforcement, insolvency proceedings etc..at no further cost to you other than the agreed commission.

Ask yourself this… Do you really think a debt collection agency will invest their own money into taking one of the above actions when it is not their debt, and when they don’t know what due diligence you have done on your debtor?

• No Collection, No Commission means, commission will only be payable on monies recovered. If further action is required, then this will be quoted separately and it will be for you to make an informed decision once all the options have been explained to you. This allows for a more competitive commission rate to be offered

Therefore in essence you are paying for the same service but at a cheaper rate – PLEASE NOTE – We offer No Collection, No Commission

Are costs added to the debt?

On B2C (Business to Consumer) debts, we cannot add our costs to the debt unless there is a clause in your terms and conditions or contract which allows us to do so.

If you haven’t got a clause already then we recommend you insert one as soon as possible.

On B2B (Business to Business) debts, we can add our costs either by way of a contractual clause or in accordance with Late Payment Legislation. Our preference is to rely on a contractual term to avoid any ambiguity.

Can interest be added to the debt?

Same rule applies as with costs i.e. on B2C debts not unless there is specific provision to do so within a contract or terms and conditions.

On B2B debts you can claim either contractual (which can be anything providing it is deemed reasonable) or statutory interest. If you have a contractual clause then this must be used.

For B2B debts, if your contractual interest rate is 3% per annum, then it makes sense unless there is any other reason) to either remove your contractual clause or amend it to mirror the statutory rate of 8% plus Bank of England base rate per annum.

Interest is typically calculated on a daily basis. We will work this out for you.

Do I pay Athena's costs?

Technically speaking yes, Athena’s engagement is with you and therefore Athena’s costs are your costs.

If you are legally entitled to your costs this will either be contractually or by statute law. In essence Athena is recovering your costs (if we are permitted to add these to the debt, contractually or by law).

If we are entitled to add our costs to your debt, then we will do our utmost to collect these from your debtor but in some instances, we may not be able to do so and therefore you will need to make an informed decision whether or not to pursue these.

Regardless if costs are recovered or not, Athena’s commission is still payable on monies recovered.

If we are not entitled to add our costs to your debt, then our commission fee will be calculated on the amount recovered and you will be liable for our costs.

To clarify...

What happens if we do not collect your debt?

In the event we are not successful during the Pre-Litigation stage, we will report back to you and provide various options depending on the merits of each case, for example, to write off the debt or maybe take legal or insolvency action.

We will quote the costs to you on a case by case basis and subject to your agreement, we will then issue you with a proforma invoice and instruct our solicitors upon receipt of your payment.

In essence the decision to spend or not is down to you, all we can do is present you with the information so you can make an informed decision and help you through that process.

Please rest assured that if we feel your case has little merit of success then we will recommend that you write off the debt. Ultimately, we do not want you to throw good money after bad and we want you to have the confidence in us so we may form a long-term relationship.

How long does the process take?

This is dependent upon your debtor and whether or not they engage with us.

Typically, by the end of a 3-4 week period, we will know what efforts are required to try and recover your debt. It may be that further action is required i.e. legal or insolvency action and therefore the length of time will be determined by the course of action chosen but also outside factors such as the courts.

How do I instruct Athena Collections?

Once we have agreed a commission rate, we will ask you to complete a simple Case Listing Form or you can instruct us using the 'Refer a Debt' button below. Once we have received your online instruction or the Case Listing Form has been completed and sent back to us, the debt (inclusive of any VAT) will be set up on our system using the information provided.

Costs and Interest will be added to the debt if permitted to do so in accordance with your terms or Late Payment Legislation.

We will require you to send us evidence of the debt in the form of a copy invoice/s or statement of account so we may also calculate interest to recover on your behalf (if entitled to do so).

Our first Letter of Claim will usually be sent within 24 hours of listing the case with us, notifying the debtor we are now instructed.

What happens next?

We will attempt to recover your debt (inclusive of any VAT), including costs and interest (if applicable) via letter, telephone & email.

As you already know, we work on a No Collection, No Commission basis and therefore our ultimate objective is to collect your debt as quickly as possible.

Our agreed commission is only charged to you on monies recovered (whether received by you or us and including any VAT that may have been claimed on your behalf).

IMPORTANT - It is highly likely that your debtor will make contact with you directly after receiving our communication in order to avoid paying costs/interest (if applicable). If your debtor does makes contact with you then we kindly ask that you refer them to us so we may deal with them directly as it is likely our balance will be different to yours due to costs and interest being applied.

PLEASE NOTE -  If you do deal with the debtor directly and make an agreement, then our commission is payable on the amount you receive therefore it is important that you either let us deal with the debtor directly or contact us to obtain the correct figure if you want the debtor to pay costs/interest.

What do I do next?

Click on the 'Refer a Debt' button below and complete the form.

We will contact you if we need any further information from you and we will provide you with updates as and when certain milestones are reached.

Other than that, sit back and relax or do what matters most to your business, we have this under control!

Please note by instructing us you are accepting our terms and conditions - a copy of which can be found here.