A new Pre-Action Protocol “PAP” for debt recovery claims will come into force on 1st October 2017.
The protocol applies to any business, including sole traders claiming payment of a debt from an individual, including a sole trader.
The PAP does not apply to business debts, unless the debtor is a sole trader.
- An individual will have 30 days to reply to the Letter of Claim.
- A more detailed Letter of Claim is required setting out the parties to the contract, the terms of the contract together with specific enclosures.
- Failure to comply with the PAP may result in a Claim being ‘stayed’ to allow time for compliance of the PAP. Alternatively, the Court may impose cost sanctions.
The impact of the changes could have a dramatic impact on your business’s cash flow. You may need to re-consider your current credit control procedures and enforce stricter time limits for payment.
Please contact us as this will assist your cash flow if the debt is paid promptly following receipt of a Letter of Claim from us.
Debt recovery claims
Suffering a financial or contractual dispute can have serious implications on your business. Our debt recovery solicitors will quickly and efficiently put your case together and act on your behalf to recover unpaid invoices. We can advise you on the appropriate course of action and assist with any legal documents or proceedings that may occur.
Call Shalish Mehta in our civil and commercial litigation department on 0161 785 3534 or email firstname.lastname@example.org.
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