What are they?
A “letter before action” (LBA) is an essential part of legal proceedings. It ensures you have completed your ‘pre action protocols’ for collecting a debt. It is a simple document which states you intend to begin court action if the debt isn't paid by a set date.
If you take legal action towards a debtor, it is important to fulfill your duties as a creditor. Proper legal action dictates expectations of a creditor as part of the process. Doing so will strengthen any claim; making it harder for debtors to dispute.
In an LBA, you must state the amount owed, how long they have to make payment and include evidence of the debt. Even if the debtor knows they owe the amount, for legal purposes it should be clearly stated. This ensures the court knows the debt is clear, and evidenced. Failing to send an LBA could result in forfeiting costs if the case reaches a court case stage. It could see a case dismissed if the debtor disputes the debt.
Why are they useful?
A letter before action is a useful tool to prompt a response from a debtor. Are You Owed Money experiences a high number of settlements following LBAs. Upon receipt, debtors realise the need to pay (or risk extra costs through a court hearing).
Debtors who try to push invoices aside and ignore an LBA are not looked upon favourably by courts. Ignoring a letter before action and subsequent legal letters is not recommended. Ignoring letters will most often result in a default victory for the claimant. A default win provides a very easy route to a CCJ against your debtor.
What a letter before action often ignites is the conversation between the collection team and the debtor. Even if the debtor disputes the debt, a letter before action often ensures they speak to us. Contacting us enables us to talk regarding the debt, the amount, settlements and payment plans. For the best chance of reclaiming your money, we need to find a way to facilitate that conversation.
Effective collection strategies
Choosing a legal route isn't how we deal with most debts. Getting a pre legal settlement or payment is always the simplest resolution. Strategies we employ are what make us the 'best debt collection agency' in the UK. For information on our award, visit our Wealth & Finance Intl blog. Our strategies often provide a client with their money before any proceedings begin.
For the most stubborn debtors , we have an expert in house legal team. Our team can assist the drafting of an LBA. This lets you begin proper legal action against a debtor. To be an effective debt collection agency, we need multiple recovery strategies. Our strategies include dealing with debtors attempting to avoid conversing.
Do you need help recovering unpaid invoices, rent or handling of a debt portfolio? Call Are You Owed Money today on 0800 130 3357 to chat to our team today. You can also email enquiries@ayom.co.uk for further information. If you want any form of legal assistance (including LBA drafting) we are the debt collection agency for you. Allow yourself the best chance of your money back with Are You Owed Money.