The money question
What does a debt collection agency cost in the UK?
Short answer: a fixed fee, a commission of 5–15% of what's recovered, or a hybrid of the two — always agreed up front. Which model and rate you're offered depends on the debt's age, size and the work involved, and statutory add-ons often cover much of the cost for you. Here's the whole picture.
The three fee models
| Model | Typical cost | You pay when | Best for |
|---|---|---|---|
| No-win-no-fee | % of recovery (5–15% commercial) | Only if money is recovered | Most commercial debts; zero downside |
| Commission | 5–15% commercial · up to 30% old/consumer | On each amount collected | Ongoing ledgers and repeat work |
| Fixed fee | Set price per action | Up front, win or lose | Demand letters; small debts; capped risk |
| Hybrid | Upfront fee + reduced commission | Instruction fee up front, balance on recovery | Harder or legal-stage cases; lower % rates |
What moves the price
Age
Under 90 days collects easily; past a year, rates climb steeply. Every month of waiting costs you margin.
Size
Percentages fall as value rises. Minimums (£150–£1,000) exist because small debts take the same effort.
Dispute
A genuinely disputed debt is a negotiation or a legal claim, priced accordingly — undisputed balances collect cheapest.
The debtor
A trading company with assets beats a vanished individual — though tracing is routine and often no-trace-no-fee.
The part most creditors miss: the debtor can end up covering the fee
On commercial invoices, UK law lets you add statutory interest of 8% plus the Bank of England base rate and fixed compensation of £40–£100 per invoice. On a £10,000 invoice six months overdue, that's roughly £690 of add-ons — against a typical £500–£1,000 collection fee. Add largely debtor-paid High Court enforcement costs for judgments, and well-run recovery often nets you close to the full original debt.
Work out your statutory add-ons →Cost questions, answered
What commission do debt collection agencies charge in the UK?
For commercial (B2B) debt, commission typically runs 5–15% of what's recovered — lower for large, recent debts and higher for small, old or consumer debts, which can reach 20–30%. The rate is agreed up front before any work starts.
What does no-win-no-fee actually mean?
You pay only if money is recovered — a percentage of the amount collected. Check how 'recovery' is defined: if the debtor pays you directly after the agency's first letter, that normally still counts, because the letter did the work.
Are there upfront costs?
Sometimes — and that's not automatically a bad sign. Pure commission and no-win-no-fee models charge nothing up front; fixed-fee actions are paid up front by nature; and hybrid models charge an upfront instruction fee with a reduced commission on recovery, which is often the better deal on harder or legal-stage cases. What matters is that any upfront fee buys defined work and is set out in writing. Vague 'joining' or 'registration' fees that buy nothing are the red flag.
Who pays the fees if the debt is recovered?
Usually you, out of the recovered amount — but on commercial debts you can add statutory interest (8% + Bank of England base rate) plus £40–£100 fixed compensation per invoice, which often covers most or all of the agency's fee. Court and High Court enforcement costs are largely recoverable from the debtor.
Is a small debt worth sending to an agency?
Agencies set minimum debt values — commonly £150 to £1,000 — and percentage fees on small sums can make collection uneconomic. For small debts, a fixed-fee demand letter is often the better tool. We only match you with agencies whose minimums fit your debt.
See what your recovery would cost
Tell us about the debt and we'll match you with a vetted agency — its exact fees set out up front, before you commit to anything. Free, no obligation.