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New research from the Credit Services Association (CSA) suggests that British businesses are increasingly turning to the courts at an early stage in order to recover debts, even though such action is likely to permanently inhibit future business relationships.

In a survey of its members the CSA – which represents the UK debt collection industry – noted a clear trend towards companies requesting debt agencies to begin legal proceedings against their clients as soon as possible. This is in spite of the potential damage that may be caused to future business relationships between the two firms.

‘Businesses want their cash and see litigation as the fastest way of getting it,’ the CSA’s Godfrey Lancashire comments. ‘Before a debt collection agency would have several weeks to achieve a result, now they are often being instructed to go legal within a matter of days.’

However, Lancashire has his reservations with regard to this trend, explaining that ‘the majority of debts are recoverable without having to resort to the courts, without the additional costs and without, therefore, jeopardising future relationships with customers.’

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