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What To Consider When Sending A Letter Before Action

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Few things are more frustrating than chasing unpaid debts. The process eats up your time, energy, and peace of mind. Sending a letter before action is the step to take after you have made reasonable attempts to get the debtor to pay. If your phone calls go unanswered and emails unanswered, sending a letter before action is often enough of a prompt to secure immediate payment.

What is a letter before action?

A letter before action is a formal letter sent by a creditor to a debtor, the letter should comply with Civil Procedure Rules and inform the latter of an impending legal claim if payment is not made within a specified period. It serves as a final attempt to resolve a dispute before initiating court proceedings. By sending such a letter, you, as the creditor, will show you are serious and provide the debtor with an opportunity to pay the debt before you take them to court.

What are the advantages of sending a letter before action in unpaid debt cases?

The pre-action protocol for debt claims sets out guidelines that parties should follow before resorting to court proceedings. Sending a letter before action displays compliance with the protocol, demonstrating to the court that you have fulfilled its obligations before pursuing legal action.

In addition, because a letter before action acts as a final opportunity for the debtor to address the debt voluntarily, it encourages early settlement. Applying for a County Court Judgment (CCJ) and enforcing it can be costly and stressful. A clear, compliant, letter before action can help you avoid having to engage in such steps.

What does a letter before action have to contain?

  • Creditor’s Details: Begin the letter by clearly identifying yourself as the creditor. Include your name, contact information, and any relevant account or reference numbers associated with the debt.
  • Debtor’s Details: Provide accurate and complete information about the debtor, including their name, address, and any known contact details.
  • Debt Details: Clearly state the amount of the debt owed, the date it became due, and any relevant payment terms or agreements that have been breached. Make sure you remember to attach supporting documentation, such as invoices, contracts, or statements, to support your claim.
  • Demand for Payment: Clearly articulate your demand for payment and specify the payment methods acceptable to you. State the deadline on which the debtor must settle the debt, in most cases this is 14-21 days, but you may need to allow more time for complex cases.
  • Consequences of Non-Payment: Explain the potential consequences of failing to settle the debt within the specified timeframe. This may include the initiation of legal proceedings and the accrual of interest.

Final words

When faced with unpaid debt a letter before action serves as a crucial step in attempting to recover the outstanding amount before resorting to legal action. By understanding its importance, including the key components outlined above, and complying with the relevant legal requirements, you can maximise your chances of getting your invoice/s paid.

How Askews Legal can help

Our Debt Claims Portal can generate a letter before action for as little as £12.50 + VAT. Furthermore, it will be checked by one of our team to ensure all the key information is included.

Register on our Debt-Claims Portal or email info@debt-claims.com to simplify your debt recovery process.

To talk to us about overdue/unpaid invoices and/or retained legal support, please call us on 02476 231000 or email enquiries@askewslegal.coPlease note that this article does not constitute legal advice.