Pre-action Protocol - Business-to-Individual
As regards litigation for debt collection, Courts expect both the creditor and the debtor to try in every way possible to prevent the need for Court action.
To this end, there is an official Pre-Action Protocol for Debt Claims which 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 for Debt Claims properly.
If the Pre-Action Protocol for Debt Claims is not done or is done incorrectly, then any relevant legal action is likely to be dismissed by the judge.
This Pre-Action Protocol for Debt Claims applies to all debt claims where the creditor is a business, sole trader or public body against an INDIVIDUAL including a sole trader.
Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Individual Form”.
Pre-action Protocol Steps
The steps are :
1. Letter of Claim (to be sent by Post)
The Letter of Claim is Issued by the Creditor with prescribed details of the claim.
It must enclose an Information Sheet, Financial Statement Form and a Reply Form for use by the debtor. These are provided as part of the Pre-Action Protocol itself.
A period of 30 days is given to the debtor to reply. This applies in all circumstances.
Note that, at the end of this 30-day period, careful attention must be paid to what has happened since this will determine the earliest date of issue of the Letter Before Action. This Letter Before Action gives notice to the debtor of the date of commencement of Court proceedings.
Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Individual Form”.
2. What happens next - Earliest date for issue of Letter Before Action
There are various scenarios that can occur after sending the Letter of Claim.
The timeframe for sending the Letter Before Action will differ from scenario to scenario.
2a. Reply Form not received by the creditor
As the debtor has effectively ignored the first step of the Pre-Action Protocol,
the Letter Before Action can be immediately sent to the debtor giving 14 days notice of commencement of legal proceedings.
2b. Reply Form received by creditor but partially complete and no agreement reached even after discussions
In this case, the Letter Before Action can be immediately sent to the debtor giving 14 days notice of commencement of legal proceedings.
2c. Reply Form is received by creditor - debtor wants more information
Debtor asks for more information or requests copies of documents.
In this case, within 30 days, the creditor must provide the requested material
or must give an explanation as to why such requested material is not available.
Note that, from the date that the creditor provides to the debtor the information requested in the Reply Form, the creditor must wait at least 30 days before issuing the Letter Before Action.
2d. Reply Form is received by creditor - debtor states intention to seek debt advice
Debtor states that they are seeking debt advice.
In this case, the creditor must give the debtor 30 days to seek and obtain debt
advice before being able to issue the Letter Before Action.
Instruct us to be your agent by just sending us this simple “Submit Debt Collection Litigation-Pre-action Protocol-Business-to-Individual 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-Individual Form”.
Start by calling our Paralegal team
Since the Courts place so much importance on the correct handling of the Pre-action Protocol and since various scenarios can occur which change the timescale of commencement of any legal action and which can have a bearing upon the likelihood of collecting any debt, it is essential to get it right and “to start as you mean to go on”.
Make sure that your Letter of Claim has no omissions or errors and that you get all subsequent stages right and process them promptly. If you, the creditor, do not do your part correctly and promptly, you can cause an unnecessary lengthening of the timeframe for at last bringing legal action !
Contact our friendly and efficient Paralegal team to avoid complications and delays and to increase the likelihood of successful debt collection, sooner rather than later. Our Paralegal team understands Pre-Action Protocol requirements, 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-Individual Form”.