CASE FILE — PROCEDURE
Letter Before Action
The formal notice required before most small claims can be issued.
A letter before action is the formal written notice a claimant sends before issuing court proceedings. It sets out the claim, states the amount or remedy sought, and gives the defendant a defined period to respond before the claimant applies to the court. Courts expect this step to have been taken. Its absence, or a defective version of it, can be held against the claimant later — in cost awards, and in how the court manages the case.
What It Must Contain
At minimum, a compliant letter states: the basis of the claim, the amount or remedy sought, how the figure is calculated, the documents relied on, and a clear deadline for response. It states plainly that court proceedings will follow if the deadline passes without a satisfactory response.
Where the claim is a debt owed by an individual or a sole trader, the Pre-Action Protocol for Debt Claims applies. It requires the letter to enclose an up-to-date statement of account and the protocol's standard Reply Form, Information Sheet, and Financial Statement. For claims that fall outside the Debt Protocol — including most business-to-business disputes, faulty goods, and workmanship claims — the general Practice Direction on Pre-Action Conduct applies: the claimant states the claim clearly in writing and allows a reasonable period to respond.
When To Send It
The letter is sent after direct attempts to resolve the dispute have failed, and before proceedings are issued. Under the Debt Claims Protocol, the debtor has 30 days from the date of the letter to reply. Under the general Practice Direction, a period of 14 days is commonly used for straightforward money claims, though what counts as reasonable depends on the complexity of the dispute. The letter must be sent within the limitation period for the claim — see REC-03 — Claim Eligibility for the applicable time limits.
If It Is Ignored
If the deadline passes without payment, a satisfactory response, or a proposed resolution, the claimant may issue proceedings. A defendant's failure to respond to the letter is not itself a defence to the claim, but non-compliance by either party is taken into account by the court — usually through costs sanctions or, under the Debt Claims Protocol, an addition to the interest claimed.
Template
[Your name / business name] [Your address] [Date] [Defendant's name] [Defendant's address] LETTER BEFORE ACTION I am writing regarding [brief description of the goods, services, or agreement]. On [date], [state what happened — e.g. goods were supplied / an invoice was issued / an agreement was made]. The sum of £[amount] remains outstanding, calculated as follows: [breakdown of the amount claimed]. I have previously contacted you about this matter on [date(s)] without a satisfactory resolution. I require payment of £[amount] in full within [14/30] days of the date of this letter, by [payment method / account details]. If I do not receive payment or a satisfactory response by [deadline date], I intend to issue court proceedings without further notice. This may result in additional costs, including the court fee and interest, being added to the amount claimed. I enclose copies of [invoice / contract / correspondence / other supporting documents] in support of this claim. Yours sincerely, [Name]