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To use EDR’s debt collection process in the NSW Local Court, follow the three simple steps to maximise your chance of improving your cash flow. EDR is totally affordable and operated by an experienced and qualified lawyer.

EDR recommends that you first select Issue Final Demand giving the debtor notice that payment is required within 7 business days of the date of the letter to make payment direct to you. The fixed costs for this letter of demand is $49.50 inclusive of GST and is to be paid to EDR by EFT, direct deposit or money order. Once payment has been received, EDR will on the same day issue the Final Demand to the debtor at the address provided by you.

If you receive payment of your outstanding debt by the due date stated in the Final Demand, there is no more to pay; no hidden fees or commissions and your file will be closed. EDR will ask the debtor to pay the $49.50 inc GST fee for the Final Demand.

However, bear in mind that there is no legal obligation on the debtor to do so unless there is an agreement in place for the recovery of external recovery costs in your terms and conditions of trade.

If you do not receive payment by the due date stated in the Final Demand, EDR will recommend commencing you select Immediate Legal Action to commence the process of recovering your debt.

If you elect to take Immediate Legal Action, you will be charged an administration fee of $110.00 inclusive of GST per claim plus a fixed filing, service and scale solicitor's costs (“Fixed Fee”). Fixed fees and scale solicitor's costs apply to amounts claim up to $20,000 in the NSW Local Court small claims division. You may also be charged for disbursements such as company or business name search fees and so on.

The fixed filing, service and scale solicitor's costs depends on the value of your claim and are determined by court scale fees and costs that apply in the NSW small claim division of the Local Court. By way of example, if the debt owing to you is $12,000 and was due on 30 June 2018, your statement of claim filed in the Local Court Small Claims Division will claim the following amounts:

Amount of claim $12,000.00  
Interest $680.55 (filed on 1/4/19) 276 days @ 5.5% per annum
Filing fees $101.00 (Standard fee) $202.00 (Corporate fee)
Service fees $43.00   
Solicitors fees $554.40 (GST incl)  
TOTAL     $13,378.95 $13,479.95

Note: Solicitors fees are inclusive of GST.

The filing and service fee is determined by Schedule 1 Civil Procedure Regulation 2012 as prescribed from time to time and are updated every 6 months. The applicable pre-judgment interest is determined by the Local Court of New South Wales Practice Not Civ 1 published from time to time.

For claims over $20,000 EDR offers legal fees at reasonable hourly rates for uncontested and contested debt recovery.

Please click on the How We Charge to review a comprehensive pricing list.



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T: (02) 8935 3898 | sales@effectivedebtrecovery.com.au | NEXUS LAW GROUP, LEVEL 11, 66 CLARENCE STREET, SYDNEY NSW 2000