Pre-Action Protocol for debt claims

If you intend on making a money claim through the Courts for a debt from an individual or sole trader after
1 October 2017, then new Pre-action protocols will apply.

As of 1 October 2017 any business claiming payment from an individual, or sole trader, must send the Debtor a formal letter of claim giving a minimum of 30 days notice before commencing Court proceedings for recovery.  The letter must also provide specific details of the debt and a chance to make payment by affordable instalments.  Cost penalties may be imposed upon a party who is found by the Court to be in breach of the protocol.

The new Protocol will not apply to debts between businesses, between Individuals, or an Individual against a business.

For help and guidance or further information, please contact Tim Eagle; Mark Scott or Tracy-Ann Moore.