In the current climate as a result of the continuing public health emergency you may be having difficulty recovering money owed to you for the completion of a job. This can very often have a huge impact on a company’s cash flow and ability to continue to trade successfully.
In the event that you are unable to agree a solution with the debtor, it can be helpful to discuss the problem with a solicitor who has expertise in debt recovery.
Often it is as simple as writing a letter to the person who owes you money – this will tell them that legal action may be taken if they don’t pay the outstanding debt. The impact of receiving a letter from a Solicitor can often produce the quick results people desire, many debts are paid on receipt with no further enforcement action required.
Talking with a solicitor can also help define your case in legal terms and help identify further action that may be available to you in the event of non-payment of the outstanding debt.
A letter before action (LBA) is a formal letter that requests the payment of a debt to you or your business and warns of the imminent issue of a court claim.
A LBA sets out what is owed to you or your business from a debtor and provides a set time period, usually 7 days, in which to pay – it is an essential requirement of the debt recovery process.
Before issuing any legal proceedings, a letter before action must be sent or costs may be forfeited.
If your debtor is a sole trader (or individual), from 1 October 2017 you must adhere to the Pre Action Protocol for Debt Claims and are no longer able to send a standard Letter Before Action.
The changes revolve around increasing the amount of information shared between parties, to a sufficient enough level that the parties can understand each other’s position and come to an agreement without the need for court involvement.
Whilst many Solicitors will make a charge for a letter before action there are many occasions where we will normally produce the initial letter free of charge.
Our highly experienced and knowledgeable debt recovery team understand the need to respond quickly and decisively to secure payment of outstanding debt. The ability to offer a fast turn-around is vital to help clients secure payment of monies owing to them.
We understand that unpaid invoices can affect your business cash flow. Delayed payments can create issues with uncertainty over when, or if, you will get paid. Our debt recovery services are trusted by companies both large and small to recover their business debts.
We can advise on terms and conditions and interest claims, together with the enforcement action. Fees are agreed at the outset and our service is tailored to each client’s individual or business needs.
In a recent claim, a Mrs G provided us with instructions on morning of 17 June to pursue monies due and owing to her, an e-mail together with letter before action was sent on the same day as receipt of instructions and by close of business on 19 June, monies to settle the outstanding debt had been received and the claim was then concluded. The client was extremely grateful for the very fast turnaround and to be in receipt of funds so quickly.
Courtesy of Rogers and Norton – 13/10/2020