Formal demands and letters before claim
A clear sequence of letters, each more formal than the last, ending with the letter the court expects to see before a claim is issued.
Why a letter before claim gets results
Before a claim is issued, the court expects the creditor to have written to the debtor, explained the debt and given them a fair chance to pay or respond. A letter before claim is that step. It is the formal notice that a claim is being prepared, and the court will look at it if the matter goes further.
That is why a properly framed letter is effective. It sets out exactly what is owed and how the figure is made up, adds interest only where the law or the contract allows it, gives the time to reply that the rules require, and names the next step: a claim in the County Court that the client has authorised and intends to issue. A debtor who reads it can see that the claim is real and ready.
A letter that exaggerates has the opposite effect. Inflated charges, vague threats or anything made to look like an official notice weaken the client's position and can be unlawful. Our letters are formal because they are accurate.
Three letters, each with a purpose
Reminder
A short, polite note soon after the due date, with a copy of the invoice and your payment details. It gives an honest customer the chance to pay without any formality.
Formal demand
A formal letter with a reference, numbered paragraphs, the amount due, any statutory interest and compensation that applies, and a clear deadline. It says what will happen if the deadline passes.
Letter before claim
The last step before court. It follows the Pre-Action Protocol for Debt Claims or the Practice Direction on Pre-Action Conduct, allows the time to reply that applies, and states that the client will issue a claim.
The timetable depends on the customer, the amount and your instructions. Some clients go straight to a letter before claim.
When the debtor is an individual or sole trader
The Pre-Action Protocol for Debt Claims applies when a business, including a sole trader, claims a debt from an individual, including a sole trader. It does not apply to debts between businesses unless the debtor is a sole trader.
What the letter of claim contains
- The amount of the debt, and whether interest or other charges are continuing
- Details of the agreement: for a written agreement, its date and parties, and that a copy can be requested; for an oral agreement, who agreed what, and when and where
- An up-to-date statement of account, showing any interest and charges added
- How to pay, and how to get in touch to discuss payment options
- If the debtor has offered instalments, why the offer is not accepted and why a claim is still being considered
- The address to which the Reply Form should be sent
What goes with it
The letter encloses the protocol's Information Sheet and Reply Form, and a Financial Statement form. The Information Sheet explains, in standard wording set by the protocol, what the debtor should do next and where to get free debt advice. The letter is dated near the top of the first page and posted on that day or the next. It can also be emailed if the debtor's email address is known.
| If the debtor | What usually follows |
|---|---|
| Does not reply within 30 days of the date of the letter | The client may issue a claim, allowing for a reply that was posted near the end of the 30 days. |
| Returns the Reply Form | At least a further 30 days to discuss the debt or get debt advice before any claim is issued. |
| Asks for documents or information | The documents, or an explanation of why they are unavailable, must be provided within 30 days of the request. No claim should be issued until at least 30 days after they are provided. |
| Says they are getting debt advice | A reasonable period for the advice. If it cannot be obtained within 30 days and the debtor gives the details the Reply Form asks for, reasonable extra time where that is fair in the circumstances. |
| Asks for time to pay | Both sides try to agree affordable instalments based on the debtor's income and spending. If the client does not accept an offer, the reasons are given in writing. |
| Agrees a repayment plan | No claim while the debtor keeps to it. If it breaks down, an updated letter of claim is sent before any claim. |
| Replies, but no agreement is reached | At least 14 days' notice of the intention to issue a claim, unless something urgent, such as a time limit about to expire, applies. |
The court expects the protocol to be followed in substance. A creditor who skips it can face orders about costs or interest, even if the claim succeeds (Practice Direction on Pre-Action Conduct, paragraphs 13 to 16).
When the debtor is a company
For debts between businesses, the Debt Protocol does not apply and the Practice Direction on Pre-Action Conduct sets the standard. The letter gives concise details of the claim, how the amount is calculated and the key documents, and allows a reasonable time to reply. The Practice Direction says that is 14 days in a straightforward case and no more than three months in a very complex one.
On business-to-business debts we add statutory interest and the fixed compensation sum under the Late Payment of Commercial Debts (Interest) Act 1998. See late payment interest and compensation.
Building and engineering work
If the dispute is about building or engineering work, the Pre-Action Protocol for Construction and Engineering Disputes may apply instead, and it has its own steps. We check which rules apply before the letter is sent.
Firm, but within the law
Chasing a debt firmly is lawful. Harassing a debtor is not. Under section 40 of the Administration of Justice Act 1970 it is a criminal offence, when trying to make someone pay a contract debt, to harass them with demands that are calculated, by their frequency, manner or timing, to cause alarm, distress or humiliation; to falsely say that not paying is a crime; to falsely claim official authority to enforce payment; or to send a document falsely presented as official. Where the debtor is a consumer, the same kinds of conduct are dealt with under the Digital Markets, Competition and Consumers Act 2024. The Protection from Harassment Act 1997 also applies.
What our letters never do
- Suggest that they come from a solicitor, a court or an enforcement agent
- Threaten a step the client has not authorised or does not intend to take
- Say or suggest that not paying is a criminal offence
- Add charges that neither the contract nor the law allows
- Set a deadline shorter than the rules allow
- Copy in employers, family or neighbours, or mention the debt publicly
A real next step
When one of our letters says the client will issue a claim in the County Court, the client has agreed to do so. If the client is not ready to go to court, the letter says something true instead, such as that the client reserves its rights. A true statement keeps its force. An empty threat loses it, and can be unlawful.
What we do
- Check the contract, invoice and evidence of the work before writing
- Prepare and send the reminder, formal demand and letter before claim on your written authority
- Assemble the protocol pack: statement of account, Information Sheet, Reply Form and Financial Statement
- Keep track of the reply periods, and answer the debtor's questions and requests for documents
- Negotiate a payment plan and record it in writing once you approve it
What we do not do
- Receive any payment. The debtor pays you directly.
- Visit debtors, or contact their employers, family or neighbours
- Advise the debtor about their own finances. We point them to free debt advice.
- Issue the claim or write to the court
If the letter before claim does not resolve it, see Money Claim Online guidance.
Common questions
I have already sent reminders. Do I still need a letter before claim?
Usually, yes. Reminders are not a substitute for the letter the court expects. If a claim is issued without it, the court can pause the claim until the steps are taken, or make orders about costs and interest.
Can I add an administration fee to the debt?
Only if the contract provided for it and the term is fair, or the law allows it. On business debts, the Late Payment Act gives a fixed compensation sum and, in some cases, reasonable recovery costs. On consumer debts there is no equivalent. Charges with no basis undermine the whole letter.
Can the letter mention the debtor's credit record?
It can state the facts accurately. The protocol's own Information Sheet explains that a county court judgment is usually entered on the Register of Judgments, Orders and Fines, and that most entries stay there for six years unless the debt is paid within one month of judgment. We do not go further than that.
What if the debtor pays part of the debt?
The payment goes to you, and we update the statement of account. A part payment does not stop you from claiming the balance, and any letter after it shows the new figure.
Our status
Appeal Specialists is an independent consultancy, not a law firm. We are not solicitors or barristers and we are not regulated by the Solicitors Regulation Authority or any other legal regulator, so you cannot complain about us to the Legal Ombudsman.
We provide non-reserved legal services only. We do not conduct litigation, file or serve court documents, or accept service of court documents for you. Where the law allows, we can speak for you at a small-claims hearing or a tribunal, but only with your agreement and, at small-claims hearings, only if you attend.
What you tell us is not protected by legal professional privilege. We never hold your money. We work on matters in England and Wales only. We do not guarantee any outcome.
All correspondence by email
We deal with everything in writing, so every point and every deadline is on the record. If you are replying to a letter from us, please quote our reference.