Pre-action Protocol for Debt Claims

Question 1

what are the aims?

Answer 1

o Encourage early encouragement + exchange of information
o Assist parties to resolve the matter i.e. agree a payment plan/consider ADR
o Encourage parties to act reasonably + proportionality

Question 2

who does this apply to?

Answer 2

applies to any business (inc. sole traders + public bodies) claiming a debt from an individual (NB: not business to business debts)

Question 3

what are the stages?

Answer 3

1. C sends a letter before claim
2. C can issue a claim if unresolved in 30 days (unless D is seeking debt advice)

Question 4

what is to be included in and annexed to the LBA?

Answer 4

o Amount owed
o Interest
o Details of agreement (i.e. orally / written, date, parties)
o How the debt can be paid
o Enc. statement of account + Information Sheet and Reply Form + Financial Statement Form