What is a letter before claim for an unpaid invoice?

If reminders have not worked, the next formal step before a court claim is a letter before claim. In England and Wales, the Practice Direction on Pre-Action Conduct and Protocols sets out what the courts expect before proceedings start.

What it is for

A letter before claim tells the other side, clearly and in writing, what is owed and why, and gives them a fair chance to pay or respond. Courts expect parties to try to settle a dispute before going to court, and they can take it into account if this step is skipped.

What it usually includes

• Who is owed the money and who owes it
• The invoice details, the amount and the due date
• Any statutory interest and compensation being claimed
• How to pay, and a deadline to pay or respond
• What may happen if the debt is not paid or disputed

Disputes

If the customer disputes the invoice, they should say why in writing. Many disputes are settled at this stage once both sides set out their position.

This post is general information, not legal advice. If you are unsure about your situation, speak to a solicitor.

How InvoiceCollect helps

InvoiceCollect puts the debt in writing for you. The debtor company gets reminders by email and text, plus a posted letter to its registered office in your name, with the amount, interest and compensation and a clear deadline to pay. We are not a law firm and our letters are not solicitor's letters. Start your chase.