Pre-Action Protocol for Debt Claims

Compliance with the Pre-Action Protocol for Debt Claims is compulsory for all claims issued by a business against an individual or sole trader but NOT claims against companies.

It is essential that you read and understand the protocol if you are considering issuing a debt claim.  It specifies what the Court expects you to do before taking court action.

Protocol objectives

  • Early communication & exchange of information
  • Settling claims/ disputes without court action
  • To act reasonably and proportionately
  • Efficient case progression if a settlement cannot be achieved

Step 1 – 30-day letter of claim, including:

If you currently do not have any terms of business which you send to your customers, or you do but they do not have a clause enabling you to charge interest, speak to Mercian Law, we can assist with the drafting and updating of terms of businessThe court expects you as a business to have written terms of business/ agreement or contract with your customers.