Debt Recovery

Non compliance with new rules could be costly

The latest update to the Civil Procedure Rules have introduced new measures, effective from 6th April this year, regarding the pre-action conduct of parties to a disputed claim.

In business debt claims, creditors now have to send a letter before claim which must, amongst other requirements, allow 14 days for a response, include copies of supporting documents, provide a form of alternative dispute resolution and must provide details of how payment can be made and contact details in the event that the debtor requires a payment plan to be considered.

This “pre-action protocol” also requires that, in respect of individual debtors in business debt claims, the creditor must, before issuing proceedings, provide the debtor with information about sources of advice, such as the Citizens Advice Bureau and the National Debt Line.

Although the protocol is not intended to apply to claims in which there is no dispute that the money is owed, there can be costs and interest implications if you do not comply with the protocol, so getting it wrong could prove costly.

Our cost effective debt recovery service is set up to meet the requirements of the pre-action protocol. Please contact Lena Braathen should you have any questions about the new procedures.