A new debt recovery procedure from October is going to make it both more expensive and time consuming to chase certain outstanding debts. Worse, the courts will look very unfavourably on those that ignore the new rules, explains Paul Taylor, Partner at Fox Williams LLP and Sarah Carlton, Associate at Fox Williams LLP
A customer is not paying their bill and despite several polite requests you find yourself in position where you’re getting nowhere and the debt remains outstanding. Your thoughts turn to considering the law. But what steps do you need to take before you can “see them in court”? Well, as it turns out, more than you may have thought.
Business creditors dealing with a debt claim involving an individual, as opposed to a business, currently have to follow the Practice Direction for Pre-Action Conduct and Protocols. It presently contains no specific pre-action protocol (rules) for debt claims. However, from October 1 2017, the new Pre-Action Protocol for Debt Claims (also known as the Debt Claims Protocol) will apply and businesses will need to ensure that they have complied with it when trying to collect debts owed. The Debt Claims Protocol will be used alongside any other regulatory regime to which the creditor may also be subject.[…]
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