Debt Recovery rules are changing!

What & when?

From 1 October 2017 the new Pre-Action Protocol for Debt Claims introduces new rules in two main areas – it extends the deadline for a debtor to respond to the Letter of Claim to a minimum of 30 days and stipulates certain information and documentation which must be given to the debtor at the outset.

Does is affect me?

The Protocol applies when a business claims payment of a debt from individuals or sole traders. It does not apply to claims for payment from limited companies or partnerships.

Failure to comply?

The courts can take non-compliance with the Protocol into account when managing the proceedings and considering costs. This could mean a costs order against you, a deduction from costs awarded to you, or the proceedings being ‘stayed’ while the parties follow the Protocol correctly.

If you would like some further help and advice on the Protocol, how it may affect your business, and what you can do to prepare, please contact Claire Gibb at Hartlaw LLP on 01937 586222.

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