LETTER BEFORE ACTION
LATE PAYMENT DEMAND
LETTER
BEFORE ACTION
We send a formal letter to the debtor, warning of court action if payment is not received within seven days. In most cases, this is enough to prompt payment, but if the debt remains outstanding, you can instruct us to proceed with court action, knowing the proper legal obligations have been met.
​
Simple instruction
To instruct us, we only need the debtor's name and address, and the amount owed. Letter Before Action: £25.00 + VAT, if you wish to collect compensation and interest at the letter stage then a Late Payment Demand is £25.00 + vat and you will be asked to enter the invoice details you wish collect.
LATE PAYMENT
DEMAND
As an alternative to a Letter Before Action, a Late Payment Demand lets you claim interest, compensation and reasonable debt collection costs under the Late Payment of Commercial Debts (Interest) Act 1998, provided both parties were acting in the course of business.
​
Interest and compensation
Under the Act and the Late Payment of Commercial Debts Regulations 2002 and 2013, you can charge interest at 8% above the Bank of England base rate for each day an invoice is overdue, and claim compensation even if payment is just one day late.
Compensation you are entitled to charge for due to late payment
​
Late Payment Demand from £25.00 + VAT.
​
Compensation you are entitled to charge for due to late payment:
Size of unpaid debt: £0.01 to £999.99 Compensation: £40.00
Size of unpaid debt: £1,000 to £9,999.99 Compensation: £70.00
Size of unpaid debt: £10,000 and over. Compensation: £100.00
Pre-Action
Protocol Letter
Where your debtor is a sole trader, or a partner in a partnership you wish to pursue personally, or an individual, the Pre-Action Protocol for Debt Claims may apply before court proceedings can be issued. The Protocol is designed to encourage the early exchange of information, allow the debtor an opportunity to seek advice, and help parties resolve disputes without the need for court action.
Thomas Higgins can prepare and send a compliant Pre-Action Protocol Letter on your behalf for £35.00 plus VAT, ensuring the necessary information and documentation are provided before legal proceedings are considered.
By following the correct protocol from the outset, businesses can demonstrate compliance with court requirements and place themselves in the strongest possible position should court action become necessary.
Pre-Action Protocol Letter: £35.00 + VAT
Bulk
Instructions
Issuing against a large number of debtors? We accept bulk instructions in a variety of file formats to save you time.
​
Secure Online Debt Recovery Portal
Our free online portal allows businesses to instruct us on new debt recovery cases, monitor ongoing claims, and access important case documents at any time. View correspondence received from debtors, download copies of letters sent on your behalf, and track every stage of the debt recovery process through one secure, easy-to-use system.
FAQs
A Letter Before Action is a formal letter warning a debtor that court action may be taken if payment is not made.
​
Yes. Thomas Higgins provides a secure online portal where you can submit instructions, track case progress, view correspondence, and access case documents 24 hours a day.
​
For qualifying late commercial payments, statutory compensation is £40, £70 or £100 depending on the invoice value.
​
A Pre-Action Protocol Letter is a formal letter sent before court proceedings to a sole trader, a partner in a partnership you wish to pursue personally or individual debtor. It provides details of the debt and gives the debtor an opportunity to respond before legal action is taken.
​
A Pre-Action Protocol Letter is generally required when recovering a debt from a sole trader, a partner in a partnership you wish to pursue personally, or individual, before issuing court proceedings.
​
Thomas Higgins will prepare and send a Pre-Action Protocol Letter for £35.00 plus VAT..
​
