At Legal Recoveries & Collections, we understand the unique challenges recruitment companies face when it comes to unpaid invoices and fee disputes. Whether it’s a client refusing to pay after a successful placement or delayed payments disrupting your cash flow, we provide effective, compliant solutions tailored to the recruitment sector.
Why Debt Recovery Matters for Recruitment Agencies
Unpaid recruitment fees can have a serious impact on business operations. Placements are often made in good faith, with terms agreed upfront—yet chasing overdue invoices diverts valuable time and resources from core operations.
Our debt recovery service helps protect your agency’s revenue stream while maintaining client relationships wherever possible.
Common Scenarios We Handle
Clients refusing to pay placement fees
Fee disputes over candidate introductions
Delayed payments breaching agreed terms
Unauthorised hirings following candidate submissions
International and cross-border recruitment debts
Our Approach to Recruitment Debt Recovery
We combine deep sector knowledge with a professional and respectful approach. Our aim is to recover your outstanding fees efficiently, without compromising your agency’s reputation.
Our services include:
Pre-legal collections to resolve matters early
Legal proceedings where necessary
High Court enforcement and judgment recovery
Tracing and asset investigation to locate debtors
Bespoke recovery strategies for retained or contingency models
Why Choose Legal Recoveries & Collections?
Recruitment Sector Specialists – Experience working with agencies of all sizes, from niche specialists to national recruiters.
Full-Service Recovery – From pre-legal contact to court enforcement, we manage the process end to end.
Reputation Protection – We understand the importance of maintaining professional relationships and will always act in line with your brand.
Transparent Pricing – Options for fixed-fee or commission-based services depending on your case needs.
Benefits of Our Service
Faster recovery of placement fees
Reduced internal admin and time chasing debt
Increased working capital and cash flow
Expert guidance on disputed claims
Sector-specific advice on prevention and enforcement
Our Process
Initial Case Review – We assess your documents and terms.
Pre-Legal Contact – Professional communication with the debtor.
Escalation to Legal Action – Issuing proceedings if required.
Judgment & Enforcement – Recovery through courts or enforcement officers.
Ongoing Support – Advice and reporting throughout the case lifecycle.
Get in touch
If you have been contacted by us please click here If you are a business and would like to know more about how we can help you please complete the short form below and we will get back to you as soon as possible.
Featured Customer Reviews
Kate Contracts & Finance Lead Private Hospital Client
We have recently engaged in the services of LRC for a large volume of debt collection and they have provided an outstanding service to us, surpassing our expectations of recovered debt. As a result, we will now be using them going forward as part of our quarterly debt review and have built a new debt collection process to effectively engage in their services.
The responsiveness of the whole team has been exceptional (maybe even too good, with the number of responses on our workflow ever-growing)! No request is too much of an ask and my weekly request for an updated report is always forthcoming. We look forward to continuing and developing our working relationship with Andrea and the team.
Head of Operational Finance – Central Surrey Health Limited (t/a CSH Surrey)
Central Surrey Health Ltd (t/a CSH Surrey) are extremely grateful to Legal Recoveries and Collections Limited (LRC) for their outstanding support and expertise in managing some of our protracted debt.
Throughout our experience, LRC have been a trusted partner, guiding us through difficult and sensitive repayment situations with professionalism and tact.
They have always provided clear, strategic advice, ensuring that we were informed every step of the way. Their thorough understanding of debt recovery procedures and the legal landscape gave us confidence in navigating difficult situations.
Their dedication to achieving a successful outcome has been invaluable to our business.
We highly recommend LRC to any organization seeking debt recovery services, particularly in complex salary overpayment matters.
Nottingham City Council
I have had the pleasure of working with Legal Recoveries and Collections (LRC) for several years across various industries. Throughout our partnership, LRC has consistently demonstrated a deep knowledge of the market and provided strategic insights that have been invaluable to our business. Their excellent communication and commitment to delivering on promises have always stood out. LRC’s proactive approach, engaging early and adapting as needed, ensures that we are always prepared and supported. Their partnership style not only delivers the best results for our business but also enhances the experience for our customers.
Credit Control Manager – Leading International Law firm
“LRC provide a professional and efficient service, delivering regular updates and effective solutions”
International Credit Insurance Client
We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.
North East Ambulance Service
As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.
The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.
Consumer Debt Recovery FAQs
What are the common challenges facing recruitment companies in recovering debts in 2025?
Recruitment companies face multiple financial challenges in 2025, including increased insolvency rates among clients due to tough trading conditions and economic uncertainty. Rising employment costs, regulatory changes, and digital disruptions such as AI impact profitability and cash flow. Delays in client payments, especially from sectors experiencing instability, can strain recruiters’ working capital. These factors require tailored debt recovery approaches that are sensitive to the volatile market environment while protecting agency revenue effectively.
How does Legal Recoveries & Collections tailor debt recovery for recruitment agencies?
LRC offers bespoke recovery strategies designed specifically for recruitment firms, whether operating retained, contingency, temp, or contract placement models. We understand recruitment-specific contract terms, fee disputes, and unauthorised hirings, enabling us to resolve issues swiftly while protecting professional relationships. Our approach integrates pre-legal amicable contact with legal enforcement when necessary, using sector knowledge to maximise fee recovery and minimise internal admin burdens.
Can LRC assist with international recruitment debts and overseas client recovery?
Yes. LRC leverages a strong global network of trusted partners to manage cross-border and international recruitment debt recovery. We navigate complex jurisdictional and enforcement issues, ensuring your overseas debts are pursued effectively and compliantly. This service is especially valuable for recruiting agencies working with international candidates or clients.
What documentation should I provide to LRC to start recruitment debt recovery?
To start, you should provide signed terms of business, copies of invoices, and proof of candidate placement or service delivery. Any correspondence related to payments, fee disputes, or unauthorised hirings will help strengthen your case. Supplying detailed, accurate documents early accelerates the debt recovery process and improves success rates.
How long does recruitment debt recovery typically take?
The duration depends on factors like debt size, debtor responsiveness, and case complexity. Many debts are resolved in the pre-legal phase through professional communication within 30 days. More complex matters involving disputes or court claims may extend recovery times to several months. LRC keeps clients regularly updated and fast-tracks cases where possible to protect cash flow.
Are the costs of debt recovery reclaimable from the debtor in recruitment cases?
In most UK business-to-business recruitment debt cases, you can recover interest and reasonable costs under the Late Payment of Commercial Debts (Interest) Act 1998. LRC advises on eligibility and applies these charges transparently and compliantly to maximise your overall recovery without breaching regulations.
How does Legal Recoveries & Collections protect recruitment agencies’ client relationships?
LRC balances firm debt recovery with maintaining positive client relationships essential to recruitment agencies. Early-stage contacts are handled professionally and respectfully, aiming to preserve goodwill and avoid reputational damage. Tailored communication and sensitive dispute resolution strategies help minimise friction while encouraging prompt payment.
Can LRC handle large portfolios and batch recoveries for recruitment firms?
Yes, LRC offers scalable portfolio management and batch recovery services for recruitment companies with multiple outstanding debts. This service streamlines case handling, reduces internal workload, and improves collection efficiency across high-volume or growing debt portfolios.
What happens if a recruitment debt case escalates to legal action?
If amicable recovery attempts fail, LRC will support you through formal legal action including issuing court claims, obtaining County Court Judgments (CCJs), and enforcing judgments through bailiffs or High Court Enforcement Officers as appropriate. We manage the entire legal process to maximise recovery while complying with UK legal standards.
How quickly can LRC start working on my recruitment agency’s debt recovery cases?
LRC can often begin work the same day after reviewing your documentation and authorisation. Our efficient onboarding and experienced team ensure rapid mobilisation to start recovery activity immediately, helping you safeguard vital cash flow in an uncertain economic environment.
Get in Touch with Us
If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342
Gaurav is our senior consultant solicitor with 18+ years of litigation experience. Having dealt with contentious commercial cases that have found their way in the Civil Procedure Rules (CPR), he is the exciting new addition to our team.
Gaurav is the designated supervisor for Dispute Resolution and oversees the team to maintain the high standards our clients deserve.
Our Coronavirus Policy
It remains business as usual for the team at LRC Ltd, however as Coronavirus spreads, we would like to update you on what we are doing to minimise any potential disruption and continue to provide you with the service you expect from us to support you.
We already have a business continuity plan in place for such an event and have reviewed this in light of Coronavirus. As part of our plan, we are:
• Following the Government guidelines to reduce the risk of infection and spread of the virus
• Using video/phone conferencing wherever possible to remove the need for face-to-face meetings and travel
• Identifying vulnerable employees and checking travel plans
• Many of our staff already have the facility to work from home and we are extending this to more staff where possible
• Phones are easily diverted and we can operate from a number of locations
• Briefing all our staff on how to reduce the risk of infection to themselves and the people they come into contact with.
Please be aware we will never email, call or text you without quoting an LRC unique reference for your case. Fraudsters may try to imitate our communications. If you have any concerns please do not click on links within an email or text message and please do forward to us immediately for investigations using our email address fraudinvestigations@legalrecoveries.com.
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