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Changes to small claims fees 1 Oct 07

Court fees are changing from next week (Mon 1 Oct) to a new charging structure that will make County Court and High Court fees the same.

If you are going to start a bank charges, or other civil claim, in the County Court some of the fees for small claims (those under £5,000) will be different. Although there is no guarantee that claims under this amount will stay as a small claim the vast majority of civil claims use this route.

Here is a quick summary to show how it’ll affect you.

You still get all the fees back if you win.

Starting fee

This is what you will pay when you first submit your case.

Currently it is between £30 and £120 for claims made through MoneyClaimOnline and in your local court.

New costs for small claims claims will be reduced to:
  • Claims under £300: £25 online, £30 in person
  • £300.01 - £500: £35 online, £45 in person
  • £500.01 - £1,000: £60 online: £65 in person
  • £1,000.01 - £1,500: £70 online, £75 in person
  • £1,500.01 - £3,000: £80 online, £85 in person
  • £3,000.01 - £5,000: £100 online, £108 in person
Allocation fee

You pay this fee if the defendant (e.g. the bank) decides to defend your claim.

Currently this is free for claims under £1,500 and £100 for claims over £1,500

New costs will be amended to:
  • Still free for claims under £1,500
  • £35 for small claims cases over £1,500
  • £200 for fast track and multi track cases over £1,500 – most shouldn’t need this, so for info only
Hearing fee

This is a new fee, again paid if a court date is allocated as the case has not been settled out of court. The charges are as follows:
  • Claims under £300: £25
  • £300.01 - £500: £50
  • £500.01 - £1,000: £75
  • £1,000.01 - £1,500: £100
  • £1,500.01 - £3,000: £150
  • £3,000.01 - £5,000: £300
The new hearing fee may make the process look more expensive, and indeed it will be if you lose. On the other hand if you win, it increases the costs the person you're suing must pay. In cases like bank charges, this thus has the benefit that it adds pressure for the other party to settle out of court.

Martin

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Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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Comments

  • Useful to know about, my OH runs his own Consultancy business.
  • Oh great..so I could be now looking at another hundred quid or so if the court decides to allocate me a hearing...Martin...does this apply to those of us already in the court system that have paid allocation fees
  • BNU_2
    BNU_2 Posts: 505 Forumite
    Does this apply to Divorce Petition Fees too does anyone know?
    :EasterBun
    [SIZE=-1]I can resist everything except temptation. [/SIZE]
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  • digp
    digp Posts: 2,013 Forumite
    1,000 Posts Combo Breaker
    clear attempt to dissuade people from suing; no doubt the govt issued a new SI to make this changes?
  • harryhound
    harryhound Posts: 2,662 Forumite
    "The new hearing fee may make the process look more expensive, and indeed it will be if you lose. On the other hand if you win, it increases the costs the person you're suing must pay. In cases like bank charges, this thus has the benefit that it adds pressure for the other party to settle out of court."

    If one is a litigant in person, up against a larger organisation, which is in effect defending what would be a class action in America, the court fees are still so small as to be irrelevant. They get compared with the cost of the legal advice expended already. However the DIY litigant is put off by any increase in financial risk.

    If both parties are small and equal, these hearing fees encourage a (dirty?) compromise.

    Now should we talk about pendulum arbitration ?
  • This makes sense to me - the number of bank charges cases that have been settled mere days before a court date have been costing the small claims courts unecessary time and effort.

    Hopefully, this added cost (which would be added to your claim against the defendant) will push them to settle within a reasonable amount of time. If they don't, they will be compensating the courts for wasted time accordingly.

    It may mean additional outlay for us if court dates go ahead, but true cases will claim this back from the defendent so, in the long term, no losses.
    Mortgage | £145,000Unsecured Debt | [strike]£7,000[/strike] £0 Lodgers | |
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    If both parties are small and equal, these hearing fees encourage a (dirty?) compromise.

    In my experience of litigation dirty compromises are reached anyway.

    With a small party due to them not wanting to pay the costs.

    With a large party as a form of gagging you. They will pay something towards your legal costs as they know the press isn't interested or is warey of publishing a case if no court ruling has been reached. After all libel cases cost the papers lots of money.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • I have been to court once and it was "block listed" (apparently the judge will hear several claims in one go ?) and have now received this hearing date - 2nd Nov. Does anyone know if I will have to pay the hearing fee as the hearing is after 1st Oct ?
  • Oakway44 wrote: »
    I have been to court once and it was "block listed" (apparently the judge will hear several claims in one go ?) and have now received this hearing date - 2nd Nov. Does anyone know if I will have to pay the hearing fee as the hearing is after 1st Oct ?
    no, your case has already been allocated.
    the court 'block list' as many many claims settle.
    the allocation fee is payable when you complete the allocation questionnaire

    Biggest Win: £5000
    Last Win: 2013
  • yabbas
    yabbas Posts: 38 Forumite
    Hmmm, tyring to get my head round these figures.

    I have a claim that's around £3000 against CoolNew Mobile - is it best for me to bring it to court before or after October the 1st?
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