Debtors’ Postcodes and Emails are needed for a Letter Before Action
Please could we ask that when instructing us to send out a solicitor’s letter before action (LBA) that the postcodes and/or email addresses for the debtors are checked for accuracy before the instructions are submitted to our debt recovery solicitors? It is a seemingly small but very important point of procedure, but getting it right ensures that the letter is sent to the correct address, and this avoids delays and possible issues later should the case proceed to issue.
A Letter Before Action is a Highly Effective Debt Recovery Tool
In our experience, a Solicitor’s letter before action results in prompt payment of the outstanding debt in c.80% of cases. Given that our LBAs start from as little as £2.95 per letter (plus VAT), they are also a cost-effective way of recovering late payments.
The Letter Before Action states the value of the debt and the time frame for payment. If payment is not received, we take the following action:
- Issue of Court Proceedings. If the debt is not paid after the LBA has been sent or a reply has not been received, we will issue a County Court Claim.
- Following issue of Court Proceedings, if an Acknowledgment or Defence is not received within the Court time frame, we will apply for a County Court Judgment (CCJ).
- Enforcement. Once a County Court Judgment has been obtained, there are several different ways to enforce it, including: Instructing a Bailiff or High Court Enforcement Officer (on debts over £600.00), Statutory Demands, Bankruptcy Proceedings and Winding-up Petitions.
Identifying Your Debtor is Also Important
This is important for the debt recovery process, not just for the letter before action.
Firstly, we need to establish the correct name of the business that owes you money, including the company registration number of it is a limited company. This will ensure that when taking legal action that we are pursuing the correct party. An obvious point, perhaps, but time and money can be wasted by having to amend legal proceedings where the wrong party has been sued. The sting in the tail is that you may also be ordered by the Court to pay the incorrect party’s costs where they have been wrongly pursued.
This can and does happen, so our advice is always obtain a copy letterhead from your customer when beginning a business relationship with them, and ensure it contains the company registration number. The number can be verified on Companies House website.
Talk to us About a Solicitors Letter Before Action
If your business is owed money by your customers, with payment overdue, don’t delay. Contact us or call us on 01922 616306 about a solicitor’s letter before action. To make things even easier, click here to see an LBA form that you can fill out and send us direct from our website. But remember to make sure to fill in all the details correctly. That way we can swing into action quickly and effectively.