Businesses chasing money owed to them must send a letter before action as part of the legal process – or risk being penalised with costs.
Under the law, a letter before action serves several purposes:
to ensure the other party has full details of the debt and what will happen if they do not pay it – effectively a last warning before court action
to provide the other side with all the information it needs to make a proper judgment about the debt
to explore other ways to resolve any issues.
Why Using Solicitors Is Better Than A Letter Before Action Template
There is a misconception that using lawyers to chase your unpaid invoices is expensive – it is not.
Beware of using template, draft or example letters before action found online. Like DIY wills, they are a false economy that can go badly wrong and be costly to rectify.
Debtors are known to use mistakes in the small print as a means of evading payment. You must be certain you are targeting the correct legal entity in your letter.
Get it wrong and the costs could be significant – far higher than any small saving you may have made by attempting the process yourself. The cost of using a specialist to draft your letter is so low that it makes sense to bring in the professionals right from the start.
And remember – a formal letter with a recognised law firm’s letterhead always gets more attention than a DIY letter cribbed from the internet.
Time is money in business: as a business owner or manager you have more important things to do than chase invoices yourself. Your time is far too valuable.
Get Coles Miller To Write Your Letters Before Action
Coles Miller’s specialist debt recovery team in Poole, Dorset helps companies, partnerships and sole traders all over the country.
Need help with debt recovery? Email our expert team using the contact form or contact Coles Miller Debt Recovery Manager Eric Holt, 01202 355695.
For Eric Holt, Debt Recovery Manager:
“I have no hesitation in recommending Coles Miller who we are very happy to use when we need assistance with recovering unpaid invoices. Eric Holt has handled every bad debt for us and always delivers a positive outcome.”
“Having worked with Eric Holt over the past few years I have received an excellent service! I would have no hesitation in recommending him to others.”
“Thank you and Tracey for all the help, advice and support that you gave me throughout the whole process. I have kept your details should I need your services again in the future. Again thank you.”
"I came into your office a short while ago without an appointment regarding an enforcement order and you saw me immediately, you gave me some sound advice for which I will always be grateful."
"Very good, quick service keeping me fully informed. The contract and pricing was very clear and I believe very good for the service I received. I would highly recommend this company and will use again. Thank you for your professional support."
