A Letter Before Action from solicitors is often enough to convince most debtors to pay outstanding debt. We help a large number of our clients receive payment in full without taking further action.
A Letter Before Action or Late Payment Demand is the starting point in the business debt recovery process as;
- It sets out the Monetary Claim in simple terms and informs the debtor that you will take court action with additional costs if the debt is not paid by a particular date, usually seven days.
- It is a court prerequisite to send an LBA to the debtor before issuing proceedings or recovery of your costs from the debtor may be forfeited.
Simply let us know the name and address of the debtor and the total amount they owe to you. On receipt of this information we will then send a Letter Before Action to the debtor requiring payment within the nominated time frame, usually seven days.
If the debt remains unpaid
If after seven days the debt remains unpaid the next step is to issue Money Claim in the County Court to include Statutory Interest and costs.
Please be aware, we will not issue a court claim until you instruct us to do so.
There is an alternative to the Letter Before Action, a preferred option for the majority of our clients and one that may be more appropriate to your case and that’s a Late Payment Demand Letter. This allows you to claim interest and compensation on top of your existing debt.
This is the similar to the LBA but allows you to claim Late Payment Interest, Compensation and reasonable debt collection costs. The proviso to this LPD is that both parties were acting in the course of business. As part of our service we will calculate the Late Payment Interest and Compensation due to you pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 and the Act and Regulations 2002 &2013. In this instance we will need full details of invoices to include date they became overdue, amount.
As with all the steps in the Stripes legal recovery process, you will be in control of what happens next. You can make those decisions and issue your instructions including any supporting documentation by using one of the following methods;