May’s FAQs for credit management issues
Here are May’s FAQs for credit management issues, focusing on what to consider prior to taking legal action against a debtor.
How can I prove acceptance of terms with no signature?
You don’t need a written signature to prove acceptance of your terms and conditions, however I would always recommend trying to get a signature in the first instance. Verbal and acceptance by conduct will also be recognised as proof of acceptance, as long as there is adequate evidence.
- Verbal agreement – If disputed, this is the hardest to prove and will usually require detailed witness statements; if you have a verbal agreement from a customer, back up the conversation with an email directly after, this way your customer can let you know of any issues prior to work beginning.
- Acceptance by conduct – This is the most common form of acceptance; if you can prove that your terms and conditions have been made known to a customer (say attached and referenced in an email) and they have gone ahead with work this would be considered acceptance. If, however, you only attach the T&Cs and don’t make reference to them in the body of the email, a court may decide you did not make adequate effort to bring the terms to their attention.
How long should I give a customer to pay after sending a final demand?
As part of court pre-action protocols sending a final demand is a necessity; along with the final demand you must also give your customer an adequate/ reasonable amount of time to respond and action your letter. If your client is another business, 7 days is a reasonable. If your Client is an individual, a minimum of 14 days up to 21 days can be given but anything less than 14 days may well be viewed as unreasonable by the courts.
Do I need a solicitor to take legal action against a debtor?
If your claim is under £10,000 (excluding interest, compensation & debt recovery fees) then a solicitor is not required to take legal action. The Court’s limit costs for legal representation significantly in the small claims track and actively encourages parties to represent them selves to keep costs low. If you would like to know more about taking legal action yourself (see our guide to taking legal action). Alternatively, engage a third party debt recovery company to advise you and attend a hearing of required, as a lay representative alongside you. For defended claims over £10,000, we strongly recommend you appoint a solicitor to handle the matter.
