Letter Before Action & Late Payment Demand Letters

Have you been promised a payment and not received it? Claim late payment fees and interest for your overdue debts.

Letter Before Action £19.50 + VAT

A Letter Before Action or LBA is the first step to commencing proceedings against a debtor.

We will write to your debtor warning of court action if payment is not received within 7 days. In most cases, this is enough to prompt the debtor into paying what they owe you, but if the debt is still outstanding, you instruct us to proceed with court action.

Late Payment Demand £19.50 + VAT

A Late Payment Demand is an alternative to the letter before action. The Late Payment Demand Letter allows you to claim interest, compensation, and your reasonable Debt Collection costs under the Late Payment of Commercial Debt (Interest) Act 1998.

You are also entitled under the same regulations to charge compensation against your debtor. The compensation you are allowed to charge depends on the unpaid debt amount.

If the debtor pays, there is no commission applied, we will close the case file.

If the debtor fails to pay on time, then we can transfer your case file to our Debt Recovery team for further action.

Pre-action protocol Letter (Undisputed Debt) £35.00 + VAT

If your debtor is a sole trader or individual, you must adhere to the Pre Action-Protocol for Debt claims, in accordance with the Civil Procedure Rules (CPR), the Court expects the parties to follow the appropriate pre-action conduct and protocols (the “Protocol”) prior to commencing litigation. 

The debtor is obligated by the pre-action protocols to respond to the letter of claim within a reasonable window. If they choose to ignore it, we will then be able to apply for a court order.

The protocols stipulate which steps should be taken before a court claim is issued and the court will likely consider the creditor’s compliance with the rules when considering the claim.

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FAQs

A letter before action is a formal notice that is sent to an individual or business to inform them of a potential legal action that may be taken against them. It is sent as a final warning before pursuing legal action. The purpose of a letter before action is to clearly state the issue at hand and the desired resolution, giving the recipient an opportunity to address the matter before it escalates to court proceedings. This letter serves as evidence that all possible steps were taken to resolve the matter amicably and can be used in court if necessary.

It also allows the recipient to seek legal advice and prepare a response or negotiate a settlement. Failure to respond or comply with the demands outlined in the letter before action may result in further legal action being taken. Therefore, it is essential for both parties to take this letter seriously and consider all options for resolution before it reaches the courts. Overall, a letter before action serves as a crucial step in legal proceedings, providing an opportunity for resolution and potentially avoiding costly and time-consuming court proceedings. 

 A late payment demand letter is a formal document that is used by creditors to remind debtors of their overdue payments. It is a last resort before taking legal action, and it serves as a warning to the debtor that legal action will be taken if the payment is not made promptly. The letter typically includes details about the outstanding amount, the original due date, and any applicable interest and late payment fees.

It also outlines the consequences of continued non-payment, such as damage to credit scores or potential legal action. The tone of the letter is usually stern but professional, urging the debtor to take immediate action to settle the debt. This document is often used by businesses, landlords, or service providers to collect outstanding payments and maintain a healthy cash flow. A well-written late payment demand letter can effectively prompt debtors to pay their dues and avoid further consequences. 

 A pre-action letter is a crucial step in the legal process of recovering debts from a sole trader or individual. It serves as a formal warning to the debtor that legal action may be taken if they fail to repay the owed amount. By sending a pre-action letter, the creditor demonstrates their willingness to resolve the issue before resorting to court proceedings. It also gives the debtor an opportunity to settle the debt before legal action is taken.

Additionally, a pre-action letter outlines the details of the debt, including the amount owed and how it was incurred, providing transparency for both parties involved. This helps to avoid any misunderstandings and can potentially lead to an amicable resolution. Furthermore, a pre-action letter follows the Civil Procedure Rules of the court and is considered a necessary step before filing a court claim. Not sending such a letter can result in the case being dismissed by the court, sending a pre-action letter for personal debt is necessary to ensure fairness and compliance with legal procedures while also providing an opportunity for the debt to be resolved amicably before resorting to court proceedings.