A debtors charter?

By Forbes Solicitors

14 Nov 2017

By Tom Smith, partner and head of dispute resolution, Forbes Solicitors.

On 1 October 2017, the all new, snappily entitled Pre Action Protocol for Debt Claims came into force, codifying the behaviour that the courts will expect from creditors before they seek to recover payment through the courts.

The provisions are, on the face of it, quite onerous to creditors, expecting exchange of detailed information and allowing significant time before court proceedings should be issued. So who does it apply to?

It applies to all businesses seeking to recover money from individuals. The good news is that it does not include limited companies or partnerships. The bad news is that it does include sole traders.

As such, most  businesses supplying goods or services will be caught by the Protocol in some way or other. So what are the new requirements?

They mostly relate to the provision of information and timeframes, which were not previously prescribed. In particular:

The Debtor will have 30 days to respond to a letter before claim There is a heavy burden on creditors to provide documentation to accompany a much more detailed letter before claim: Full details of the basis of the agreement need to be included; An up to date statement of account needs to be enclosed An Information Sheet A Reply Form A Financial Statement form The debtor may request further time for up to 30 additional days to seek advice, time to pay or request further documentation If the debtor responds to the initial letter but no agreement is reached, a further 14 days' notice of court proceedings must be given. So what is the aim of the protocol and will it succeed?

The aim is to encourage parties to exchange information early in the process to avoid the need to instigate court proceedings.

Whilst that is a noble ambition, the amount of documentation that creditors will have to prepare is significant and the risk is that debtors use the prescribed time limits and burnens on the creditors to delay paying even further

One clear flaw is that the significant documentation (12 or 13 pages we think) will have to be sent by post unless express consent to receive emails is obtained. That means expensive printing and postal charges, in addition to having to wait for the debt to be paid!

Our suggestion to clients is that we can help to make sure they are protocol compliant early on in their credit control process or as soon as it appears that payment may not be forthcoming promptly. That way, you will not be obliged to delay any further if you have to instruct solicitors to instigate a court claim to recover the monies and we can proceed straight to final demand and issuing the claim.

Latest news

1

Three in a row for Lancaster accountants at national awards The Team At Ics Celebrating Their Win

Three in a row for Lancaster accountants at national awards

15 Oct 2026

2

Victorian Plumbing records 11 per cent revenue increase Victorian Plumbing staff

Victorian Plumbing records 11 per cent revenue increase

15 Oct 2026

3

Preparation matters for MTD changes Bilal Piperdy

Preparation matters for MTD changes

15 Oct 2026

4

Training for scheme to boost number of women in technology Aerial photo of Lancaster University Campus

Training for scheme to boost number of women in technology

15 Oct 2026

5

Warden wins contract for Manchester Christmas Markets Warden Three Year Christmas Markets Resized

Warden wins contract for Manchester Christmas Markets

14 Oct 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Building Brands (and workplaces) That Are Accessible For Everyone
Wyqfi3-wowjag-heczop.jpg.jpg 16 Oct 2026

Building Brands (and workplaces) That Are Accessible For Everyone

Neuro Spark Training Solutions, Burnley , BB11 2AS

09:30 - 16:00

Chamber Business Lunch with Leanne Lucas, Founder of Let’s Be Blunt CIC
Lancaster And Morecambe Logo 1 16 Oct 2026

Chamber Business Lunch with Leanne Lucas, Founder of Let’s Be Blunt CIC

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 14:00

St Catherine's Skydive, October
Skydive 17 Oct 2026

St Catherine's Skydive, October

Black Knight Parachute Centre, Lancaster, LA2 0DY

09:00 - 17:00

Commercial Planning Application workshop
Commercial Planning Workshop 20 Oct 2026

Commercial Planning Application workshop

Online, Accrington , BB5 0PF

12:00 - 13:00

Mock Tribunal - step inside an employment tribunal… without the risk
LBV Website Events GraphicMock Tribunal 21 Oct 2026

Mock Tribunal - step inside an employment tribunal… without the risk

Online, Preston, PR1 3JD

09:30 - 12:30

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it
Lancaster And Morecambe Logo 1 21 Oct 2026

They’ve Already Decided About You – Sales Geek Sales Club: how buyers judge you before you speak – and what to do about it

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Preston Freelancer Meet-Up: October
Freelance Meet Up 22 Oct 2026

Preston Freelancer Meet-Up: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

North West Business Expo
LBV Website Events GraphicBusiness Expo 1 23 Oct 2026

North West Business Expo

Toughsheet Stadium , Bolton, BL6 6JW

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin