Letter Before Action

A compliant Letter Before Action should state the parties’ names, contract or invoice reference, exact amount owed (including accrued interest), how the debt arose, payment methods, and a strict deadline for settlement. It must also warn that court action may start without further notice and outline potential cost consequences. For consumer debts, you must include up-to-date Financial Conduct Authority wording about alternative dispute resolution and signpost the debtor to independent advice. Our templates cover every mandatory element, ensuring the letter is admissible evidence of fair pre-action behaviour.

No letter can guarantee payment, but an LBA materially improves your odds because it shifts the risk calculus for the debtor. They know legal costs, statutory interest and a County Court Judgment (visible on credit files for six years) are imminent. LRC’s historic data show ≈65 % of commercial debtors pay in full within seven days of receiving our solicitor LBAs, rising to >80 % when instalment plans are included. When payment is still withheld the documented trail makes subsequent court action faster and cheaper.

Business-to-business debts typically allow 7 days. Consumer debts require 14 days to comply with the FCA’s CONC rules and Civil Procedure Pre-Action Protocol. In complex disputes you may elect 30 days, balancing urgency with reasonableness. Our team advises on the optimal timeframe for each case, mindful of limitation periods and cash-flow impact.

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998 you may add 8 % above Bank of England base rate plus a fixed £40–£100 compensation per invoice. Alternatively, you can apply your contract’s interest clause if it is higher. Including these sums in the LBA not only boosts recovered value but underscores the financial incentive to settle promptly.

The terms are often used interchangeably. Technically, for consumer debts the Pre-Action Protocol calls the notice a Letter of Claim and prescribes additional enclosures (statement of account, reply form, financial statement form). Our consumer templates incorporate these extras, whereas commercial LBAs are shorter and reference the Protocol generally.

Part-payment within the response window shows engagement and resets the limitation clock, but does not halt proceedings unless you agree. We’ll confirm your instructions – accept a plan, demand the balance, or continue to litigation. Any arrangement is documented and monitored; default automatically escalates.

Handled professionally, an LBA clarifies expectations without burning bridges. The tone is firm but factual, referencing contractual terms rather than emotion. Many clients report improved future payment behaviour because boundaries are clear. For key accounts we can soften language or extend deadlines – you stay in control.

Absolutely. The download includes guidance notes and interest calculator. However, self-issued letters lack solicitor branding and audit trail. For higher-value or repeat debts we recommend our full service: it costs little more than postage yet carries proven legal weight and inclusive compliance checks.

The LBA instructs debtors to outline any dispute in writing. Once received, our team reviews evidence and advises on next steps: negotiation, mediation, or issuing a claim to let the court decide. Where the defence is weak, early litigation often prompts settlement before hearing, maximising recovery and limiting costs.

Email us with the invoice, contract and debtor contact details, or log in to Debt Manager and click “Instruct LRC”. You’ll receive a fixed-fee quote within two business hours. Once approved, your tailored Letter Before Action is dispatched the same day – putting you one decisive step closer to payment.