Letter Before Action
In all but the most exceptional cases, the debtor should be notified in writing pre-issue that proceedings are to be taken against them.
We give all debtors fourteen days in which to make payment of the debt and we inform the debtor that we will issue proceedings if no response is received within that period. We give fourteen days because this the period prescribed by the Ministry of Justice in the Pre Action Protocol and breach of this protocol can carry penalties at court.
All creditors may include a claim for interest in the debt recovery procedure. If there is an interest clause in your Terms and Conditions of business the rate specified can be claimed therein. If there is no specified rate then interest and fixed fees can usually be claimed under the Late Payment of Commercial Debts (Interest) Act 1998 for business debts. If you are making a claim against an individual then only the current rate of interest may be applied.
If you/we receive a response to the Letter Before Action it should be dealt with either by you directly or you can instruct us to deal with the query/dispute on your behalf. This will incur additional fees which are non-recoverable from the debtor.
We will endeavour to establish contact with the debtor before commencing proceedings however, if no satisfactory response is received, a County Court claim can be issued without entering into any further correspondence.