Important changes to debt recovery

Important changes in the way debt recovery matters are dealt with are due to come into force on 6 April 2009, by virtue of the 49th update of the Civil Procedure Rules.

This new protocol refers to a 'letter of claim' which must include certain information. Lisa Blair, Debt Recovery Specialist from Lanyon Bowdler says, ‘before issuing court proceedings it is important to put together your ‘letter of claim’. This must contain certain information including the claimant’s full name and address, the basis of the claim, any written contracts, invoices or purchase orders, any mediation you believe appropriate, the date you wish to receive your response by and you must ask for copies of any relevant documentation not in your possession which you wish to see.’

‘The biggest impact the update is going have will be on businesses who deal with individual debtors, as their ‘letter of claim’ must provide details of how the money can be paid, offer repayment options and inform the debtor of free independent advice that may be available to them, such as National Debtline, Consumer Credit Counselling Service and the Citizens Advice Bureau. The debtor must be given 14 days to respond to this letter of claim.’

Lisa adds ‘failure to comply with this protocol may result in costs penalties at a later stage, or even a risk that your claim may be struck out by the court, for more information an in depth fact sheet can be viewed by clicking here.