A Letter Before Action is the first stage in recovering your debts. It is important we get it right for you to ensure the best outcome.
As far as your Debtor is concerned the information requested is critical because….
Name of Debtor – The full name of the Debtor will help us identify what type of letter needs to be sent. If your Debtor is a Limited Company we are able to send out a 7 day letter significantly shortening the time given pre-issue. If the Debtor is an Individual, Sole Trader or a Partnership we must treat the Debtor as a ‘consumer’ thereby giving them 14 days to respond prior to issue.
Giving us initials and Trading As information at the outset means we will not have to contact you for further information before sending your Letter Before Action.
Getting the Debtor’s name correct at the outset avoids delays later.
Contact Details of Debtor – We do ask for an e-mail address, fax number and full address with postcode. With both e-mails and faxes we are able to keep transmission reports when the Letter Before Action is sent to prove delivery. This reduces the opportunity for the Debtor to deny receipt. If for any reason the letter is undeliverable by e-mail we will try fax and if that is not successful we will post your letter. Giving us all the information at the beginning of your instruction enables us to try all means of delivery where required.
Company Registration of Debtor – Each Limited Company has its own unique Registration Number. We require this information from you to ensure we are pursuing the correct Debtor.
Payment Terms – How long do you give your Client to pay your invoices? This is critical when we come to issue for you as it can significantly alter the amount of interest we add to the original debt. Your payment terms should be stated in your Terms and Conditions. (We are able to offer advice on Terms and Conditions should you require this).
Is your debt disputed? – Does your Client dispute the debt in any way? Again this will alter the letter sent out. We must give the Debtor 14 days to respond if they dispute what you are claiming they owe. (In this situation an alternative approach to collecting your debts may be required, we will discuss this with you if appropriate.)
What does the debt relate to? – The majority of debts we send Letters Before Action for relate to overdue invoices. If your debt relates to something else (for example rent arrears or a bounced cheque) it is critical we know at the outset. In many cases we are able to alter the wording on the Letter Before Action to accommodate your debt, however in some cases we may need to get further information from you prior to pursuing your debt.
Monthly breakdown of invoices – It is important we know the date of your invoices to enable us to work out the due date of payment (from your terms of payment) and interest owed to you on issue of the Claim.
Help us to help you recover your debts by giving us full information at the outset, clear instructions reduces the chance of delay later.