Does the Protocol apply to your debt?
This is the first question, and it is the one most guidance answers badly. The Pre-Action Protocol for Debt Claims applies to any business claiming payment of a debt from an individual. Paragraph 1.1 is explicit that it does *not* apply to business-to-business debts — unless the debtor happens to be a sole trader, in which case it does.
That distinction changes what you have to do before issuing. If you are a limited company chasing another limited company, the Protocol is not engaged and the general Practice Direction on Pre-Action Conduct applies instead, a much lighter obligation. If you are chasing a sole trader or a consumer, the full Protocol bites.
Protocol applies
- Company → individual consumer
- Company → sole trader
- Sole trader → individual consumer
- Public body → individual
Protocol does not apply
- Company → limited company
- Company → LLP
- Company → partnership (unless a sole trader)
- Individual → individual (no business creditor)
What must go in the Letter of Claim
Paragraph 3.1 sets out the contents, and it is a longer list than most creditors expect. A letter that simply demands payment does not comply, however firmly it is worded.
The letter itself must state
- The amount of the debt.
- Whether interest or other charges are continuing to accrue.
- Where the debt arises from an oral agreement — who made it, what was agreed, as far as possible what words were used, and when and where.
- Where the debt arises from a written agreement, the date, the parties, and that a copy can be requested from you.
- Where the debt has been assigned — details of the original debt and creditor, when it was assigned and to whom.
- If instalments are currently being offered or paid — why that offer is not acceptable and why a court claim is still being considered.
- How the debt can be paid, and how the debtor can discuss payment options.
- The address to which the completed Reply Form should be sent.
And these must be enclosed with it
- An up-to-date statement of account for the debt, including any interest and administrative or other charges. If you cannot produce one, the most recent statement plus the interest and charges added since — enough to bring it up to date.
- A copy of the Information Sheet and Reply Form at Annex 1 to the Protocol. These must be provided in every case, without exception.
- A Financial Statement form — Annex 2 provides an example, drawn from the Standard Financial Statement.
Two mechanical points that catch people out. The letter must be clearly dated toward the top of the first page, and posted on the day it is dated or, if that is not reasonably possible, the following day (paragraph 3.2). And it must go by post — you may also email it if you hold an address, but post is the default unless the debtor has explicitly asked otherwise and given you alternative details (paragraph 3.3).
The 30-day clock
Day 0
Letter of Claim dated and posted
The clock runs from the date at the top of the letter, not from the date the debtor receives it. Date it and post it the same day, or you are giving away part of your own notice period.
Within 30 days
Debtor replies
Using the Reply Form. They may admit the debt, dispute it, ask for documents, or say they are seeking debt advice.
If documents are requested
You must provide them
The Protocol expects the creditor to supply requested documents, or explain why they cannot be supplied, rather than pressing on regardless.
After 30 days, no reply
You may issue
Subject to any remaining regulatory obligations — for a regulated creditor, the FCA Handbook still applies. Allow for a reply posted toward the end of the period (paragraph 3.4).
What happens if you do not comply
Non-compliance does not make the debt unenforceable. What it does is hand the court a reason to penalise you procedurally. The court may stay the proceedings while the missing steps are taken, and it may make an order for costs against you, including where you go on to win the claim. In practice the risk is not losing the debt; it is spending more to recover it than the delay was ever worth.
The Protocol also expects both sides to consider alternative dispute resolution before issuing, and to take stock of their positions once the reply is in. A creditor who ignores a reasonable settlement proposal and issues anyway is exposed on costs even with a strong claim.
What it costs to do properly
The whole point of the Protocol stage is that it is cheap relative to litigation. These are the fees I charge for the pre-legal stage and the first steps beyond it.
- Letter before action, pre-legal
- £75
- Debt over 180 days overdue
- +5%
- County court claim, £1,000–£3,000
- £215
- Individual statutory demand
- £250
- Company statutory demand
- £350
Introduction fee, plus 15% of what is recovered
Added to the success fee
Fixed, plus £115 court fee
Fixed
Fixed
All figures include VAT. Disbursements and court fees are additional and set by HMCTS.
The 15% is charged on sums actually collected. If nothing is recovered at the pre-legal stage, the £75 introduction fee is the only charge, it is payable whether or not the debt is recovered, and I would rather say that plainly than describe the arrangement as risk-free and leave you to find the exception later.
How I run a Protocol claim
- 01Same day
Check whether the Protocol applies at all
Whether the debtor is an individual, a sole trader or an incorporated body decides the entire route. It takes one look at the contract and Companies House.
- 02Within two working days of instruction
Draft and serve a compliant Letter of Claim
With the statement of account, Information Sheet, Reply Form and Financial Statement, dated and posted the same day.
- 03Within the 30 days
Handle the reply
Disclosure requests answered, payment proposals assessed against what a court would order, disputes narrowed before they become pleadings.
- 04Day 31 onward
Issue, or advise you not to
If the debtor has no assets and no income, a judgment is an expensive piece of paper. I will tell you that before you spend money on it, not after.
Common questions
Does the Pre-Action Protocol for Debt Claims apply to business-to-business debts?
No, not unless the debtor is a sole trader. Paragraph 1.1 states that the Protocol does not apply to business-to-business debts unless the debtor is a sole trader. For a company chasing another company, the general Practice Direction on Pre-Action Conduct applies instead.
How long does the debtor have to respond?
30 days, running from the date at the top of the Letter of Claim rather than the date of receipt. If no reply arrives in that window you may start proceedings, subject to any regulatory obligations you still owe the debtor.
What must be enclosed with the Letter of Claim?
An up-to-date statement of account, the Information Sheet and Reply Form at Annex 1, and a Financial Statement form. The Information Sheet and Reply Form must be provided in every case.
What happens if I issue a claim without following the Protocol?
The debt remains enforceable, but the court can stay the proceedings until the steps are taken and can order costs against you, including in cases you go on to win.
Can I send the Letter of Claim by email?
You may send it by email in addition to post if you hold an email address. Post remains the default. Only where the debtor has explicitly asked not to receive post, and has given alternative contact details, should you use those instead.
Does the Protocol apply to debts owed to me personally?
No. The Protocol governs a business claiming from an individual. If you are an individual claiming from another individual with no business involved, it does not apply, though the general rules on pre-action conduct still do.
This page states the law of England & Wales as at 18 August 2026. It is general information, not advice on your matter, and reading it does not create a solicitor-client relationship.