Solicitors to Issue a Letter Before Action

Over the years, we have provided coherent advice and specific representation to hundreds of clients facing uncooperative debtors. And our client insists our solicitors to issue a letter before action.

A letter before action is also known as a pre-action protocol letter; the indispensable first step to move forward to recover your funds is to issue a letter before action (LBA).

Solicitors to issue a letter before action on fixed fee

When you are agitated from chasing your debtor and an individual or a business defaults on making the payment and in fact does not consent to a financial agreement, then at that point in time, taking swift, decisive legal action is vital to initiate the recovery of your debts.

What is a letter before action?

A letter before action is a formal legal notice delivered to the defaulting party; it clearly sets out your legal position and precise facts and monetary sum in dispute as well as your intentions to commence legal proceedings if payment is not received within a specified timeframe, which is normally 14 days.

A letter before action is defined under practice directions—pre-action conduct and protocols (PDPAC). Before issuing a claim, the claimant must clearly set out the brief details of the claim. A letter before action must specifically state the legal basis on which the claim is made, a clear summary of the facts, what you as a claimant are seeking from the defendant, and a reasonable timeframe for the response.

What documents you must provide to a solicitors to issue a Letter before action

a) A copy of any written agreement. If you do not have any written agreement, then you would have received messages from the debtor confirming the refund of the money.

b) Copy of all outstanding invoices

c) The standard-form financial statement. (also known as income and expenditure form)

Debtor’s response to a letter before action/Pre-action Protocol

If you have received a response from the debtor stating that the payment was paid regularly but it was not taken from his account, request the claimant’s solicitors to take further instructions and write back to the defendant.

On the other hand, if the defendant states that he/she needs more time so that he/she can take legal advice, then you have to take it into consideration. The debtor might say that he/she is under financial strain but is willing to clear the debts at the earliest opportunity and request you to set up a payment plan; then again, you have to consider his position.

If the parties fail to reach a settlement in negotiations, then they may consider using an appropriate form of Alternative Dispute Resolution (ADR).

Compliance with the Letter before Action/Pre-action Protocol

It is your case; therefore, you must take all necessary steps before filing a claim at the court. Therefore, as per the practice directions, you should comply with the pre-action protocol letter, as sometimes the non-compliance with the pre-action protocol will not let your case be accepted and proceed.

It is not compulsory, but non-compliance with it without a valid and genuine reason could very well prejudice the creditor.

Frequently Asked Question (Solicitors to issue a letter before action)

Question. What will happen if I do not serve a letter before action to the defendant?

The court may accept the claim but will consider it a breach of the practice directions for pre-action conduct.

Question. Can I claim the cost of issuing a letter before action from the debtor?

As a general rule in small claims, pre-action legal costs are not automatically recoverable; however, you can claim these costs back if:

Your written loan or service agreement contains an express contractual costs or indemnity clause stating that the defaulting party must pay all legal fees incurred in recovering the debt.

The claim proceeds to court and falls within a track where costs are recoverable, or the court exercises its discretion under CPR Part 44 to award contractual costs.