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.