Letter Before Action — Debt Recovery

Legal Basis

Pre-Action Protocol for Debt Claims (effective 1 October 2017); CPR Practice Direction — Pre-Action Conduct and Protocols; Limitation Act 1980, s.5 (6-year limitation period for simple contract debts). Interest on judgment debts runs at 8% under the Judgments Act 1838.

• ✗Not attaching a Reply Form and Financial Statement as required by the Protocol
• ✗Giving less than 14 days to pay — the Protocol requires at least 14 days
• ✗Not specifying the precise amount claimed with a breakdown
• ✗Sending the letter to an address you know is wrong — ensure it goes to the correct address for service

Build Your Letter

[YOUR NAME (CREDITOR)]
[YOUR ADDRESS]
[YOUR EMAIL ADDRESS]

[DATE OF LETTER]

[DEBTOR'S FULL NAME]
[DEBTOR'S ADDRESS]

---

Dear [DEBTOR'S FULL NAME],

**LETTER BEFORE ACTION — OUTSTANDING DEBT OF £[TOTAL AMOUNT OWED (£)]**

I write in connection with the sum of £[TOTAL AMOUNT OWED (£)] which is owed to me / [CREDITOR'S NAME (IF A COMPANY)] by you and which remains unpaid.

**Details of the debt**

Nature of the debt: [DESCRIPTION OF THE DEBT]
Date the debt arose: [DATE THE DEBT AROSE]
Invoice/reference number(s): [INVOICE OR REFERENCE NUMBERS]

A full breakdown of the amount owed is set out below:

[BREAKDOWN OF THE AMOUNT OWED]

**Total amount outstanding: £[TOTAL AMOUNT OWED (£)]**

**Previous requests for payment**

I / [CREDITOR'S NAME (IF A COMPANY)] have previously requested payment of this debt on the following occasions:

[PREVIOUS PAYMENT REQUESTS]

To date, no payment has been received and no satisfactory explanation has been provided.

**What I require from you**

I require you to respond to this letter within 14 days of the date above. You may:

1. **Pay the full amount** of £[TOTAL AMOUNT OWED (£)] to [BANK/PAYMENT DETAILS FOR PAYMENT].
2. **Propose a payment plan** — if you cannot pay immediately, I am prepared to consider a reasonable instalment arrangement. Please contact me to discuss this or complete the enclosed Financial Statement.
3. **Dispute the debt** — if you believe you do not owe this sum, please set out your reasons in writing with any supporting documents within 14 days.

**Consequences of non-response**

If I do not hear from you within 14 days, I will issue a claim in the County Court without further notice. If a judgment is obtained against you, it may affect your credit rating and I may seek to enforce it by attachment of earnings, a charging order against your property, or bailiff action.

Interest at 8% per annum under the Judgments Act 1838 will continue to accrue until the debt is paid.

Yours faithfully,

[YOUR NAME (CREDITOR)]

Related Guides

• Small Claims Court

Frequently asked questions

How long do I have to wait after sending a letter before action?

The Pre-Action Protocol for Debt Claims requires you to send a formal letter before action and allow a reasonable response period of at least 14 days. Courts expect compliance with this protocol and may penalise non-compliance in costs if you proceed to issue a County Court claim without following these steps.

Can I use a letter before action for a debt that is more than six years old?

No, you should not use this letter for debts that are statute-barred. Under the Limitation Act 1980, simple contract debts have a six-year limitation period. If the debt is older than six years, it is statute-barred, and sending a demand for such a debt is not appropriate.

What specific details must be included in the letter before action?

The letter must include the precise amount claimed with a full breakdown, details of the debt, and previous requests for payment. You must also attach the Reply Form and Financial Statement required by the Protocol. Failing to attach these documents or giving less than 14 days to pay are common errors that can lead to penalties.

What happens if the debtor ignores the letter before action?

If the debtor does not respond within 14 days, you may issue a claim in the County Court without further notice. If a judgment is obtained, it may affect the debtor’s credit rating. You may also seek to enforce the judgment through attachment of earnings, a charging order against property, or bailiff action.

Is it okay to send a letter before action if I don't actually intend to sue?

Sending a demand without a genuine intention to bring proceedings is a contempt risk. You must not use the letter to threaten legal action you do not intend to pursue. The letter should be a formal demand for payment in compliance with the Pre-Action Protocol for Debt Claims.

Can the debtor propose a payment plan instead of paying the full amount?

Yes, the letter should state that you are prepared to consider a reasonable instalment arrangement if the debtor cannot pay immediately. The debtor is invited to contact you to discuss this or complete the enclosed Financial Statement to propose a payment plan within the 14-day response period.