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What is a Letter Before Action?

What is a letter before action?

If you are endlessly chasing unpaid invoices or money owed to you and after exhausting your own internal debt recovery methods such as phone calls and mailed notices, you may escalate to legal proceedings to recover outstanding balances.

Before things escalate to court, you should send a “letter before action.” It is formal notice that politely warns your debtor that legal action will follow if payment isn’t received.

Often, the letter before action serves as a wake-up call. The seriousness of a legal letter can prompt debtors to settle the outstanding amount and avoid further complications.

In most cases, the formal nature of the letter and professional, legal manner in which it is written, is enough to resolve the issue without needing to go to court.

It is crucial to remember, though, that this letter is no empty threat. Always follow it through with action if you receive no response.

Solicitors fees may take a big chunk out of the money you are chasing, leaving you with very little change.
If you use a solicitor instead of a paralegal, expect to pay of fee of £250 plus VAT (£300 in total),  for a letter before action. It doesn’t include any  other correspondence or communications telephone or written with the debtor or their legal representative, including negotiation of payment terms.
A Letter Before Action written by a Paralegal will cost a fraction of that.

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