Pre-action Protocol-Business-to-Business   

As regards litigation for Business-to-Business debt collection, Courts expect both the creditor and the debtor to try in every way possible to reach an agreement and prevent the need for Court action. 

To this end, several Pre-Action Protocols exist and each clearly lists the steps to be taken and in the proper order before bringing any proceedings.   Both parties must keep records of the steps undertaken and the various documents received and sent. This will constitute proof that they have followed the Pre-Action Protocol correctly. 

If the Pre-Action Protocol is not done or is done incorrectly, then any relevant legal action is likely to be dismissed by the judge.

The Pre-Action Protocol applies to all debt claims where the creditor is a business against the debtor who is also a BUSINESS.

The set of Pre-Action Protocols concerns most eventualities.  Where this is not so, there is an official Practice Direction on Pre-Action Conduct and Protocols (Pre-action PD).

Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Business Form”. 

 

 

Pre-Action Protocol steps     

 

The steps are :

Letter Before Claim 

The creditor sends the debtor a “Letter Before Claim” stating the amount of the debt due and the basis of its calculation.

This letter warns the debtor that you intend to take them to court if they do not reply within the allotted period of notice i.e. 14 days, either with a proposal for payment of the amount or with settlement of the full amount due.  You may also need to include any appropriate documentation of any attempts to settle the dispute outside of the legal system.

 

Issue of a Claim Form  - 14 days later 

If the debtor has failed to pay the debt due within the 14 days allowed or has not replied to the “Letter Before Claim”, the creditor can then go on to issue a claim. 

 

Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Business Form”.  

 

 

Alternative Dispute Resolution (ADR)       

In their endeavour to avoid Court proceedings, the Courts also look favourably on attempts via negotiation and Debt Collection Mediation to reach an agreement or to narrow the differences between the parties.

This is used where the debtor disputes the amount or any aspect of the debt.

Alternative Dispute Resolution (ADR) aims to avoid Court action by inviting a dispassionate but competent third-party to view the matter and convey, at arm’s length, the stance of one side to the other.

Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Business Form”.     
 

 

After the Pre-action Protocol 

 

After completing the Pre-action Protocol, the next steps are : 

Court sends Notice of Issue  

Debtor’s Response 

Judgement in Default  (via Request for Judgement)

 

Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Business Form”.

 

 

Call our Paralegal Services team now 

 

The correct and prompt completion of the appropriate Pre-Action Protocol is essential. A Claim can be rejected by the judge on the basis of the total lack of execution of the Pre-Action Protocol but it can also be rejected on the basis of insufficiency.  

The Pre-Action Protocol execution would be deemed insufficient if one party does not supply to the other party enough information to allow understanding of the issues or if one party refuses to participate in Alternative Dispute Resolution (ADR) on grounds considered unreasonable.

Of course, if one party does not honour legal deadlines, then it will be considered to be non-compliant in the matter of the Pre-Action Protocol.  

Contact our friendly and efficient Paralegal team to smooth the way for your successful business-to-business debt collection.  Our Paralegal team understands and implements the correct  Pre-Action Protocol, acting promptly and accurately and all for a reasonable fee.
 

Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Business Form”.