If your company is owed money by a US-based customer, recovering that debt from across the Atlantic can feel like navigating unfamiliar territory.
The US legal system works differently from the UK, the costs aren’t always transparent, and many businesses aren’t sure where to start.
At Safe Collections, we work with experienced US-based agents to recover commercial debts on behalf of UK creditors. Here’s what you need to know about how the process works, what it costs, and what to expect if you’re considering pursuing a US debtor.
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Are There Advance Fees for US Debt Collection?
For undisputed business-to-business claims, we do not charge fees in advance. If we don’t recover the debt, you don’t owe anything, assuming you chose not to start legal action.
If your case reaches the litigation stage, which is always optional, court and legal costs become payable by you as the creditor.
We’ll discuss this with you before any proceedings are issued so you can make an informed decision about whether it makes commercial sense to proceed.
How Much Does US Debt Recovery Cost?
As a guide, our average rate sits around 20–25% of the amount recovered. Lower rates are available for higher-value claims or clients with regular placement.
To break this down, our fees vary depending on the specifics of each claim. We factor in things like:
- The age of the debt
- The amount owed
- Any history we have of recovering debts on your behalf
For debts that move into the quasi-legal stage (more on this below), an additional 10% fee applies, bringing the total to around 35%. This reflects the involvement of a US attorney at that stage, and only applies if payment is secured through their efforts.
What Does the Debt Recovery Process Look Like?
You can read a detailed account of our US debt recovery process, which breaks down the process into three phases.
Compared to most international debt recovery claims, the US debt recovery process has an additional step. It’s worth understanding how this works before you instruct us, so we’ll summarise here.
Stage 1: Amicable debt collection
We begin with standard professional debt collection activity through our US-based partner. This involves direct contact with the debtor, formal demand communications, and negotiation.
This stage is aimed at securing payment without any legal involvement.
Our fee at this stage is typically around 25% of any amount recovered.
Stage 2: Quasi-Legal Collection via Attorney
If amicable collection doesn’t produce results, the case moves to a US attorney who is registered and licensed in the debtor’s home state.
This is an escalation short of full litigation. The attorney makes a formal attempt at collection under their letterhead and applies legal pressure, but without yet issuing court proceedings.
This stage is unique to the US process. It often prompts payment from debtors who have ignored earlier approaches.
An additional 10% fee applies to any funds recovered at this stage, bringing the total fee to 35%.
Stage 3: Litigation
If the debt remains unpaid and your contract supports legal action, we’ll discuss whether litigation makes sense in your specific case.
Court proceedings require your approval, and you’ll always be in control of whether this stage goes ahead.
If you choose to proceed, you’ll be responsible for court and legal costs in addition to the 35% contingency fee on any further recovery. We’ll give you a realistic picture of costs, timelines, and likely outcomes before anything is filed, so you can decide whether it’s worth proceeding.
Is It As Easy to Sue Someone As It Looks in the Movies?
Not even close!
US court costs and timelines vary dramatically from state to state, and the process can be lengthy and expensive. We have a list of questions that you should ask yourself before going ahead with legal action in the US.
One particular challenge for international creditors is that in disputed cases, there’s a high likelihood you’ll need to provide a witness from your company to physically appear at one or more court hearings in the United States.
Sometimes you won’t be able to avoid sending a witness. It’s worth thinking about this carefully because it adds both cost and logistical complexity to litigation.
For many UK businesses, this reality check is enough to make amicable or quasi-legal collection the preferred route. In our experience, the majority of recoverable debts are resolved without ever reaching court.
Do You Bankroll Our Legal or Enforcement Costs?
No. We work on contingency for collection activity, but we don’t cover the costs of litigation on behalf of other profit-making businesses.
If your case reaches the litigation stage, you will be responsible for all additional costs, such as:
- Court filing fees
- Attorney costs
- Any enforcement expenses
- The cost of sending one or more witnesses, which involve travel and accommodation costs.
We’re transparent about this from the outset so there are no surprises later.
Are There Any Abortive Costs?
No. If we’re unable to recover your debt during the amicable or quasi-legal stages, you don’t owe us anything.
But remember that there is financial risk when moving ahead with litigation.
While our contingency fee structure remains the same, litigation itself carries financial risk. Court costs are not recoverable if the case is unsuccessful, and enforcement of a judgment can involve further expense.
We’ll make sure you understand these risks before you commit to legal action.
Do You Carry Out Doorstep Visits?
No. In our view, if you’re going to incur the expense of sending someone to physically confront a debtor, it makes far more sense to invest that money in issuing court proceedings instead.
Once a judgment is secured, the US Marshals Service can be instructed to enforce it. This is a more effective use of resources than an unannounced visit that carries no legal weight.
Is US Debt Recovery the Right Option for Your Business?
We specialise in helping UK businesses recover debts from US customers, and we’re here to advise you right from the start.
Our US-based agents understand the local business environment, know how to apply effective pressure, and can navigate the unique features of the American system on your behalf.
If you’re owed money by a US debtor and you’re not sure what your options are, get in touch. With no upfront fees and no obligation, there’s nothing to lose in having the conversation.
Contact Safe Collections today to discuss your US debt recovery needs.
