Are you compliant with the New Pre-Action Protocol for Debt Claims?
Back in July we gave you some information about the changes in Pre-Action protocol coming into effect in October 2017. We wanted to do a follow up to keep you informed of the changes and the tools we have developed to make sure you are compliant.
The changes in the Protocol affects all businesses extending credit terms to individuals and sole traders. If you are not set up to comply with the new process, this will slow down the debt recovery process for you and have a detrimental impact on your cash flow.
What impact have the changes had?
It was thought when the new protocols were announced they could be used by customers to lengthen the debt recovery process. The main reason being as a creditor you would now have to allow debtors an additional 30 days to seek advice.
Worryingly, there seems to be a number of cases where creditors are causing the delays due to not being prepared to provide the additional paperwork and documentation now needed. If as a creditor are not fully compliant, you risk your claim being struck out and having to go through the whole process from the beginning which would severely delay payment.
Creditors need to ensure they have a good process to follow-up the letter of claim and assist their customers through the process to ensure that further delays do not happen from confusion.
Do you have everything you need in place?
We have decided to prepare some documents to help you with this.
Get compliant with the New Pre Action protocol
We also have a course running that will enable you to get the training you need to help yourself.
Our small claims court course will cover the process and procedures of taking legal action to get outstanding debts paid. We also cover how to react to defended actions and how to enforce a judgement. The course will also cover the new Pre Action Protocols for Debt Claims that came in to force on 1st November 2017 and covers debts owed by individuals and sole traders
