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What Is the Pre-Action Protocol and How Does It Work in Debt Collection?

Pre-Action Protocol is a structured set of steps creditors must follow before initiating court proceedings. This page explains what a pre-action protocol is, why it matters, what it must include and what happens if it's ignored, all in one comprehensive hub.
What Is a Pre-Action Protocol?

A Pre-Action Protocol is a mandatory framework designed to encourage out-of-court resolution between a creditor and a debtor (in this case, between a business and a client who has not paid what they owe). It sets out the steps to take before starting court proceedings, including exchanging clear information about the debt and attempting to reach a settlement, with the aim of avoiding unnecessary litigation.

 

Why Are Pre-Action Protocols Important?

Pre-Action Protocols help avoid court costs, reduce delays and demonstrate to the court that you’ve made efforts to resolve the dispute amicably. Failure to follow protocol can lead to penalties or adverse cost orders.

 

When Does the Pre-Action Protocol Apply?

A Pre-Action Protocol applies when initiating a debt recovery claim, particularly money and possession claims under the Civil Procedure Rules. It must be followed before issuing a County Court Claim (N1) or similar enforcement action.

 

 
What Must a Pre-Action Protocol Include?

A valid Pre-Action Protocol must include:

  • A Letter of Claim that explains the amount owed and what the debtor must do.
  • A response period, usually 30 days, giving the debtor time to respond.
  • Reasonable attempts to resolve the dispute such as offering payment terms or mediation.
  • Evidence of correspondence, attempts or any supporting documentation.

 

What Happens If the Protocol is Ignored?

Failing to comply with Pre-Action Protocol requirements may result in:

  • The court awarding you reduced or no costs, even if you win.
  • Delays in obtaining your claim due to court discretion.
  • Possible sanctions, depending on the nature and impact of non-compliance.

 

What’s the Difference Between a Letter of Claim and a County Court Claim?

A Letter of Claim is a formal written notice sent to a debtor before starting court proceedings. It explains the debt, includes supporting documents and gives the debtor a set time (usually 30 days) to respond or pay. It is part of the Pre-Action Protocol and shows the court you have tried to resolve the matter before legal action.

A County Court Claim is the formal application to the court to start legal proceedings and request a County Court Judgment (CCJ). It is made using the N1 claim form and includes the claimant and defendant details, the amount owed and the particulars of the claim. If successful, it results in a court order requiring the debtor to pay.

In short, the Letter of Claim is the final warning before legal action while the County Court Claim is the step that starts court proceedings.

 

Invoice Management Checklist for Pre-Action Protocol

Using our Invoice Management Checklist helps ensure all invoices are accurate, detailed, and supported by the correct documentation before starting the Pre-Action Protocol. A complete and error-free invoice strengthens your Letter of Claim by clearly showing what is owed and why, reducing the risk of disputes and supporting compliance with the protocol’s requirement for clear, early communication.

Scroll down to find the link to our Invoice Management Checklist download page and get your copy.

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Common Questions About Pre-Action Protocol

Do I have to send a Letter of Claim before going to court?

Yes. Under the Pre-Action Protocol you must send a Letter of Claim giving the debtor at least 30 days to respond before issuing a County Court Claim. This shows the court you tried to resolve the matter first.

What happens if the debtor ignores the Letter of Claim?

If a debtor ignores the Letter of Claim under the Pre-Action Protocol, the creditor can proceed to issue a County Court Claim. Keep copies of the letter, proof of posting, and any evidence to demonstrate compliance.

Can I email the Letter of Claim instead of posting it?

You can email the Letter of Claim, but postal delivery is recommended for proof of service. Send it by post, ideally recorded delivery, and use email as an additional channel if appropriate.

Will following the Pre-Action Protocol guarantee payment?

No. Following the Pre-Action Protocol improves your position with the court and can lead to settlement, but payment depends on the debtor’s willingness or ability to pay and may still require a County Court Claim.

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Invoice Management Checklist Download

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