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Answer

The main advantage of using a law firm to collect an outstanding debt is that a law firm will act in a highly regulated and professional manner and provide a genuine level of credibility and professionalism to the process of pursuing the outstanding amount. Of particular importance a law firm will generally charge on time and attendance basis (often at a significantly reduced rate based on the volume of work involved) as opposed to a traditional debt recovery firm which will normally charge a very large percentage of the debt for their services. (Debt recovery firms' charges often exceed 20% of the amount recovered!)

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