£45,000 Disputed Debt Settlement Agreement via Pre-Action Protocol Letter
In most cases, even for larger debts, the issuing of a Pre-Action Protocol Letter Before Action will deliver the desired result. In this disputed debt settlement agreement case, the debt owed to our client was £45,000, a debt that was disputed. We reviewed the case with our client and, following Pre-Action Protocol, we issued a Letter Before Action. This quickly produced a reply from the debtor, which included a payment proposal. We advised our client to accept this proposal. Within 2 weeks the debt was settled in full, including late payment charges and interest.
Pre-Action Protocols and the Letter Before Action
Each case that we are instructed on is different and is taken on its merits by our experienced debt recovery solicitors. A Pre-Action Protocol is a series of steps that need to be taken by a person (or business) who wishes to take a claim to court. In this instance the Protocol is the Letter Before Action.
A Letter Before Action is a final demand letter that requests that the debtor makes payment before legal action is taken. It sets out, as appropriate:
- The amount owing (the debt)
- The date the debt owing should have been paid
- Whether interest is payable on the debt
- Automatic calculation of the amount of interest to be paid in total
- Automatic calculation of the continuing daily amount of interest charged as long as the debt remains unpaid
- The threat of issue of legal proceedings for a county court judgement, which will be taken if the debt is not paid by a deadline
- Other enforcement procedures to recover the debt
- The deadline for paying off the debt in order to avoid legal proceedings.
In this instance, as in most cases, the Letter Before Action was successful, producing a debt settlement agreement that resulted in a happy client. In cases where the Letter Before Action does not prompt payment, we then advise our clients on the best course of further action to take.
Contact us About Letters Before Action
If your business has a debt that you believe might not be paid, take action and contact or call our debt recovery solicitors on 01922 616306. They will then issue a Letter Before Action as the first step in the recovery process.