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Standard Letter before action for a Personal Debt

Last modified: January 31, 2024

Standard Letter before action for a Personal Debt Frontline Collections

Sending a letter before action for a Personal debt

If you are seeking to recover a personal debt then a standard letter before action can do the trick. This should not be confused with a Letter before claim.

Sending a standard letter before action will let the person know you are serious about recovering monies owed to you. It will also set a deadline for an amicable resolution to be reached. A standard letter before action should make it clear that your goodwill and patience have been exhausted.

If a person owes you money, this can be a stressful situation. A personally owed debt can arise from goods or service being provided to an individual. It is unlike debt collection for a business where the rules can be slightly different.

It could also be for a personal loan given or money owed from a family member. It is a useful tool in situations where the person has ignored your requests for payment and reneged on any payment promises.

A standard letter before action is often a tactic used by companies as a final means of resolving an unpaid invoice issue. It can be used for pier to pier debts also. Wherever a debt is owing and remaining unpaid, sending a letter before action can certainly help in many instances.

What exactly is a letter before action?

The option of a standard letter before action is well used. A Letter before action is often referred to as an LBA for short. Sending a letter before action is a more formal way to demand monies owing to be paid from an individual.

The letter should be correctly addressed to the individual in question. Make sure you have the correct full address on it and ensure it is dated also. Here we offer a Letter before action free template to help get you started.

You need to ensure it clearly states the amount owing to you and when it was due. If you are sending a letter before action for work or goods supplied, be sure to include the invoice number or purchase order reference.

Clearly state when the payment was due. If you are a business sending a letter before action, you can add late payment compensation and accumulated interest under that.

If there is an agreement in place, ensure you make specific reference to the said agreement and the terms of which monies were payable. It is also advisable to include payment methods for which you are able to accept payment. This can simply be your bank details. If you are happy to accept payment by cheque or bankers draft, make sure your address for payment is included.

Standard Letter before action for a Personal Debt Frontline Collections

Sending a Letter before action to an individual

When sending a letter before action to an individual, it is recommended it is sent by post. It is also strongly recommended that it is sent via signed for recorded delivery. This way you can almost be certain it will be delivered and signed for. If you have a verified email address for the individual, it is worth sending a copy of the Letter before action via email.

A Letter before action very often gives seven days for the individual to make payment or respond. The deadline should be made very clear in your LBA to avoid any possible confusion. A letter before action can demonstrate that you did everything you possibly could in order to obtain payment before further action was necessary.

Letter before action or Letter before claim?

A Letter of claim is difference than a standard letter before action. A letter before action is very often the last low key attempt to get a debt paid from an individual. A Letter of claim is a little more serious.

A letter before claim must be issued inline with pre-action protocols and the civil procedure rules. It is often a pre-cursor to litigation and must detail all the facts pertaining to the debt owed by the individual.

This includes copies of any statement of accounts, agreements, financial statement and a reply form. It needs to be meticulously drafted and abide by the CPR rules. It will form part of your claim if court action became necessary. You must also give 30 days for the debtor to respond which is a much longer time period than a standard LBA.

What if my letter before action is ignored?

If you have sent a standard seven day letter before action but it has been ignored then help is at hand. At Frontline Collections, we have helped thousands of people recover what they are owed. Speak to our friendly Team of Experts today for information on how we can help you or your business collect a debt that is owed from an individual

We have been expert Personal debt collectors for nearly twenty years. We have helped thousands of private individuals recover monies owed to them.

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