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Service Charge Arrears Recovery (SCAR)

Clearway provides service charge recovery services that help property owners and managing agents recover unpaid service charges from leaseholders and tenants through compliant debt recovery and enforcement processes. Service Charge Arrears Recovery (SCAR) is a formal process to assist clients in recouping unpaid service charges and insurance premiums from tenants, typically involving debt tracing, formal notices, and potential legal escalation.

SCAR is available exclusively from Clearway and has been developed to recover outstanding Service Charges & Insurance.

SCAR is a pre-legal debt recovery solution, available exclusively via Clearway to landlords and managing agents. SCAR is used to recover debts that are accrued but are excluded under CRAR given that only amounts in consideration of Pure Rent arrears are recoverable via the CRAR remedy.

Recover Outstanding Service Charge Arrears Quickly and Professionally

SCAR is used to recover debts that are accrued but are excluded under CRAR, given that only amounts in consideration of Pure Rent arrears are recoverable via the CRAR remedy.

Through our extensive knowledge of the debt recovery process, we have developed a workflow to pursue both the recovery of Rent (Commercial Rent Arrears Recovery – CRAR) and Service Charges and Insurance (SCAR). 

SCAR from Clearway presents clients with an immediate collection option without incurring legal costs.

Key Benefits of Service Charge Arrears Recovery

  • Instruct us to collect CRAR and SCAR as a dual process
  • We offer a range of pre-legal collection strategies for clients
  • No recovery; no abortive or close-out charges
  • Combined dual CRAR/SCAR or single SCAR instructions
  • All actions administered by our Recovery Account Managers
  • No Letter-Before-Action fee payable when no payment is secured
  • No upfront costs, fees or disbursements
  • A dedicated key contact for all your property management queries

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Need Urgent Help Recovering Unpaid Service Charges Quickly?

Whether you’re dealing with ongoing arrears or a tenant who has stopped responding to your communications, our Recovery Account Managers can begin the SCAR process quickly, with no upfront fees and regular updates throughout.

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Our Service Charge Arrears Recovery Services

We offer the following services to help our clients recovery unpaid debt:

Service Charge Arrears Recovery (SCAR) Service


We provide a no-collection, no-fee service, showcasing our confidence in our ability to recover default service charges. You absorb zero risk when you engage Clearway to represent your rights and recover the monies owed. There are several routes to enforce the collection process without needing to resort to court proceedings.

Many landlords find themselves in a loss-making position when tenants leave with unpaid debts. We are happy to combine CRAR and SCAR collection processes under one client instruction, focusing on a swift, seamless recovery of the full outstanding amount.

Our experienced Recovery Account Managers are well-versed in the regulations and legislation surrounding service charge arrears. They provide independent advice to ensure you remain compliant at every step.

Expedited Service Charge Debt Recovery


Where necessary, we can refer a service charge arrears case to our Legal Service, with a no-fee Letter Before Action issued to warn non-payers that failure to settle their account or reach an agreeable repayment plan will result in legal action.

Throughout the process, we act according to your instructions and provide regular updates, so you know how the recovery is proceeding and when we anticipate receiving funds.

If the tenant disputes the debt, we can support you in selecting a litigation solicitor to explore the options, navigate potential costs, and provide transparency so you can make informed decisions about how you wish to proceed.

SCAR Legal Services


Our escalation into Legal Services is fast and effective in recovering all types of debts for businesses nationwide. There is no charge applied for issuing a 7-day Letter before Action.

On receipt of your instruction, we will manage the whole process, working with the legal team and providing you with updates throughout. If the debt is disputed, we will arrange for a litigation lawyer to set out your options and costs from the outset, so you have full transparency.

Clearway legal partners are recognised by the prestigious Legal 500.

Who Do We Provide Service Charge Arrears Recovery Services For?

can landlords carry out inspections

Commercial Landlords

Commercial Landlords

We enable landlords to recover unpaid service charges and insurance contributions from commercial tenants while remaining compliant with the current rental legislation.

Can landlords carry out inspections?

Managing Agents

Managing Agents

Property management companies often rely on SCAR to recover outstanding service charges across individual properties and commercial portfolios without having to account for unnecessary delays.

Retail Property Owners

Retail Property Owners

Shopping centres, retail parks and high street landlords might use SCAR in situations where tenants have failed to pay service charges despite their having ongoing occupation or after vacating premises.

Industrial CCTV Security from Clearway

Industrial Estate Operators

Industrial Estate Operators

Industrial landlords can recover unpaid maintenance, communal area and estate management charges alongside wider debt recovery strategies.

Property Investment Companies

Property Investment Companies

Investment groups that may have multiple properties benefit from a structured recovery process that protects cash flow and minimises financial losses.

Facilities Management Companies

Facilities Management Companies

Organisations responsible for managing commercial estates can use SCAR to pursue outstanding service charge liabilities on behalf of landlords and property owners.

Key Features of Service Charge Arrears Recovery :

    steel screens

    No Upfront Costs

    We operate a no-collection, no-fee approach, ensuring clients can pursue outstanding debts without adding further financial risk.

    Combined CRAR and SCAR Recovery

    Where appropriate, we can pursue commercial rent arrears and outstanding service charges simultaneously through one coordinated recovery strategy.

    Dedicated Recovery Account Managers

    Every instruction is managed by an experienced specialist who provides regular updates and remains your single point of contact throughout.

    Legal Escalation When Required

    Where pre-legal recovery proves unsuccessful, we can coordinate onward legal action through our trusted legal partners while keeping you informed of the available options and likely costs.

    UK and International Debtor Tracing

    If a debtor has relocated or ceased communication, our tracing specialists can help establish their whereabouts before recovery action continues.

    Our Process

    Clearway mobile patrol

    How It Works?

    1. Initial Case Review

    We can assess the outstanding service charge debt, review supporting documentation and confirm the most appropriate recovery strategy based on your lease agreement and circumstances.

    2. Pre-Legal Recovery Action

    Our Recovery Account Managers begin the SCAR process, contacting the debtor and attempting to secure payment or agree an appropriate repayment arrangement.

    3. Trace Investigations (Where Required)

    If the debtor has moved or cannot be contacted, we can undertake trace investigations to establish their current whereabouts before continuing recovery action.

    4. Escalation Options

    Where voluntary repayment is unsuccessful, we’ll discuss the available legal options with you, including referral to our legal partners where appropriate.

    5. Ongoing Case Management

    Throughout the recovery process, you’ll receive regular progress updates.

    Key Problems Service Charge Arrears Recovery Can Help With

    Service charge arrears can quickly affect cash flow, property management budgets and relationships with tenants. Our SCAR service helps landlords and managing agents recover outstanding debts efficiently while ensuring every stage of the recovery process remains compliant.

    Your Tenant Has Stopped Paying Service Charges


    Despite reminders, outstanding balances continue to increase, and you’re looking for a structured way to recover the money owed.

    Your Commercial Rent Has Been Paid, But Service Charges Have Been Ignored


    Since CRAR only applies to pure rent arrears, you need an alternative solution to recover unpaid service charges and insurance contributions.

    Your Tenant Has Vacated Leaving Outstanding Debts


    You’ve discovered that a former tenant has left without settling their account, leaving you responsible for costs that should have been recovered.

    You Need to Recover Debts Without Immediately Starting Court Proceedings


    You’d like to resolve the matter through professional pre-legal recovery before considering more formal legal action.

    Your Debtor Has Stopped Responding or Cannot Be Located


    Communication has ceased, and you need specialist tracing services before recovery can continue.

    You Need Clear Advice on the Best Recovery Route


    Different debt recovery options exist, and you want experienced guidance to ensure you’re pursuing the most effective solution.

    You Want to Recover Outstanding Funds Without Increasing Your Costs


    No collection, no fee recovery allows you to pursue legitimate debts without exposing yourself to unnecessary financial risk.

    You Need One Provider to Manage the Entire Process


    Rather than coordinating multiple agencies, you’d prefer one experienced team to manage tracing, recovery, updates and legal referrals where necessary.

    Recovering service charge arrears promptly helps protect cash flow, minimise financial losses and reduce the likelihood of debts becoming increasingly difficult to recover.

    commercial squatters

    What Our Clients Say

    Fisher German LLP

    July 2025

    Great Service and Rapid Response

    I have been using Clearway for over 5 years. One of the standout features of Clearway is their rapid response time.

    Axis Europe

    July 2025

    Can’t Commend Them Enough

    The guys were very polite, friendly and professional in their whole attitude. They worked very hard & did a great job!- Can’t commend them enough!

    John Fisher S&C Slatter

    July 2025

    Huge Thanks

    A huge amount of thanks goes to ‘Clearway’ for their exemplary conduct and unwavering commitment to the safety of my site management, site operatives and construction site.

    Why Choose Clearway for Service Charge Arrears Recovery?

    Clearway is a security company in the UK offering nationwide property management and security services, working with countless commercial and private landlords to protect vacant homes and units, evict squatters, upgrade security assets, or organise regular inspections.

    No-Risk SCAR Services for Landlords


    Clearway recognises that non-payment is particularly challenging for landlords, who are often out of pocket for services delivered to the tenant, and rental arrears can further compound the impacts on your cash flow, profitability, and finances.

    End-to-End Debt Recovery Solutions


    As a group, we can provide end to end debt recovery and security solutions – from securing your empty property against break in, to recovering outstanding debts from tenants. Keep all of your communications in one place.

    Independent, Professional Expertise at All Stages


    We provide access to skilled debt recovery specialists at no cost, as we appreciate that further expenses linked to recovering outstanding debts can exacerbate an already challenging situation, and we guarantee no fees if the debt is non-recoverable.

    Low-Risk Stress-Free Debt Recovery


    We endeavour to make debt recovery stress-free and straightforward. There are no upfront costs or fees, and a verified contact is available on demand to answer questions, deliver updates or request your input when there is a decision to be made or several possible action plans.

    What Do Our SCAR Experts Say?

    Every case needs to follow the correct legal process while balancing commercial considerations, tenant relationships and the likelihood of successful recovery. Acting early often gives landlords and managing agents the greatest opportunity to recover outstanding debts before situations become more complicated.

    Changes in government legislation over recent years have created a demanding and complex environment for collecting Service Charge Arrears.

    Please get in touch at any stage of a service charge arrears situation for further information about our SCAR service and why it may be the best route to secure a successful repayment.

    mike clarke

    Mike Clarke

    Commercial Enforcement Director

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    FAQs

    What is the difference between SCAR and CRAR?


    Commercial Rent Arrears Recovery (CRAR) is a statutory process that allows commercial landlords to recover unpaid rent from tenants, subject to certain legal requirements. However, CRAR applies to pure rent only and cannot be used to recover unpaid service charges or insurance contributions.

    Service Charge Arrears Recovery (SCAR) provides an alternative route for recovering these outstanding sums. Where a tenant owes both commercial rent and service charges, Clearway can manage CRAR and SCAR together as part of a coordinated recovery strategy.

    How can I recover unpaid service charges from a commercial tenant?


    If a commercial tenant has failed to pay service charges, the first step is usually to review the lease and supporting documentation to establish the amount owed. You can then pursue the tenant for payment through a structured pre-legal debt recovery process such as SCAR.

    Clearway can contact the debtor, seek payment or an appropriate repayment arrangement and, where necessary, trace tenants who have vacated or stopped responding. If pre-legal recovery is unsuccessful, we can also discuss the available options for escalating the debt through our legal partners.

    Why are Service Charge and Rental Debts Collected Separately?


    Different regulations apply to service charge and rent recovery, and landlords should proceed with caution if trying to recoup unpaid debts simultaneously without support from an experienced debt recovery agent. Collections must be legally enforceable, documented and aligned with the terms of the lease.

    Can SCAR Be Used Alongside Commercial Rent Arrears Recovery (CRAR)?


    Yes. Many landlords instruct Clearway to pursue Commercial Rent Arrears Recovery (CRAR) alongside Service Charge Arrears Recovery (SCAR). These two processes might address different types of debt, but they can often be managed together through a coordinated recovery strategy.

    What Information Do I Need Before Starting a SCAR Claim?


    Usually, we’ll ask for details of the outstanding service charges, copies of the relevant lease agreement and any supporting documentation showing the debt owed. Your Recovery Account Manager will explain exactly what information is required before recovery can get started.

    Related Services

    • PLDR Pre-Legal Debt Recovery: fast and effective debt recovery systems to recover amounts owing to you, mitigating the risk of the case becoming a court matter and recouping monies due as quickly as possible.
    • CRAR Commercial Rent Arrears Recovery: efficient action to recover outstanding rent owing on commercial properties, including credit risk assessments, legal charges over the defaulting payee’s assets and optional legal escalations.
    • Eviction Services: prompt, professional and experienced action to remove travellers, squatters, and illegal tenants from private property following UK laws and regulations.

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