Pre-Legal Letters

A letter before action is a formal notice sent by a creditor’s solicitor to a debtor, informing them of the outstanding debt and the intention to pursue legal action if the debt is not settled within a specified period. It serves as a final warning and often prompts the debtor to make payment to avoid court proceedings.

Sending a debt letter before action offers several benefits:

● Prompt Payment: It often encourages the debtor to settle the debt quickly to avoid legal action.
● Documentation: It provides a formal record of your attempts to recover the debt.
● Clarity: It clearly outlines the consequences of non-payment, making the debtor aware of the seriousness of the situation.
● Negotiation Opportunity: It opens the door for potential negotiation and settlement without court involvement.
● Compliance: we can prepare letters designed to meet the requirements of the pre-action protocols in the Civil Procedure Rules.

A solicitor’s letter before action should be sent as soon as it becomes clear that the debtor will not settle the debt voluntarily. This often follows initial attempts at recovery, such as phone calls or reminder letters, which have failed to elicit payment.

After delivering a letter before action, several outcomes are possible:

● Payment received: The debtor may settle the debt in response to the letter.
● Negotiation: The debtor may contact you or us to negotiate a settlement or payment plan.
● No response: If there is no response, we will discuss the next steps with you, which may include initiating court proceedings.

The reclaimed money will be paid directly to you. Our role is to facilitate the recovery process and ensure the funds are returned as efficiently as possible. In some cases, we may receive the payment on your behalf and then transfer the funds to you, but this will be clearly communicated and agreed upon in advance.

If payment is not received after the letter before action is sent, we can escalate the matter by:

● Initiating proceedings to obtain a Court judgment demanding the debtor repays.
● Exploring alternative dispute resolution methods, such as mediation.
● Advising on enforcement actions, such as asset seizure or garnishment, to recover the debt.

The cost of sending a solicitor’s letter before action can vary depending on the complexity of the case and the amount of preparation required. We provide a transparent fee structure and will outline the costs during our initial consultation. Generally, sending a letter before action is a cost-effective first step in the debt recovery process.

Our letters before action are highly effective due to our thorough approach and legal expertise. Many debtors respond promptly to avoid further legal consequences, leading to a high rate of successful debt recovery without the need for court proceedings.

You have the right to charge interest on overdue debts. The amount and rate of interest may be specified in the original contract or agreement, however, if no specific terms are provided, statutory interest rates may apply under the Late Payment of Commercial Debts (Interest) Act. We will help you calculate the appropriate interest and include it in the letter before action, ensuring you recover the full amount owed, including any interest and compensation.

Yes, in addition to the principal debt and interest, you may be entitled to recover additional compensation and costs. This can include legal fees, administrative costs, and other expenses incurred in the debt recovery process. We will advise you on what can be claimed and ensure these are included in the letter before action and any subsequent legal proceedings.