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

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition Thatched Hamlet Terrace at Guys

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition

11 Mar 2026

2

Heritage manufacturers embrace digital technology with Made Smarter Siddique Rasul digital project manager and Steve Allen of Darwen Terracotta

Heritage manufacturers embrace digital technology with Made Smarter

11 Mar 2026

3

BAE reaches pay deal with striking workers Typhoon production Warton

BAE reaches pay deal with striking workers

11 Mar 2026

4

Lancashire canalside holiday destination and marina for sale Tewitfield Marina

Lancashire canalside holiday destination and marina for sale

10 Mar 2026

5

Tributes paid to Fort Vale chairman Edward Fort photo. Pic by Fort Vale.

Tributes paid to Fort Vale chairman

10 Mar 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
LBV127 March/April Magazine Networking Event
Jan/Feb Networking Event - Closer up
Networking
19 Mar 2026

LBV127 March/April Magazine Networking Event

Salmesbury Hall, Preston New Road, Lancashire, PR5 0UP

08:30 - 10:30

AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Red Rose Awards 2026
Rra26 Logo315x315
Awards
12 Mar 2026

Red Rose Awards 2026

Winter Gardens Blackpool

18:00 - 02:00

Payroll Update 2026 Red Hall Hotel
Payroll calculator new.jpg.jpg
LBV Hub Seminars
13 Mar 2026 - 13 Mar 2026

Payroll Update 2026 Red Hall Hotel

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Chamber Business Lunch with guest speaker – John Pye, Eden Project Morecambe
Logo.jpg.jpg
LBV Hub Dinners / Balls
13 Mar 2026 - 13 Mar 2026

Chamber Business Lunch with guest speaker – John Pye, Eden Project Morecambe

Morecambe Football Club, Morecambe, LA4 4TB

11:00 - 14:00

Could your business be a King’s Award winner?
King's Cross Awards
LBV Hub
18 Mar 2026

Could your business be a King’s Award winner?

11 Victoria Street, Preston, Lancashire, PR1 7QS

16:00 - 18:00

Preston Freelancer Meet-Up and Coworking Day: March
March Freelancer Square.png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

Preston Freelancer Meet-Up and Coworking Day: March

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

The Business Network Central and East Lancashire
LBV Header (30).png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

The Business Network Central and East Lancashire

Barton Manor, Preston, PR3 5AA

11:30 - 14:15

Exploring Debt Finance: Unlocking SME Growth
LCC Event Logos
LBV Hub Exhibitions
24 Mar 2026

Exploring Debt Finance: Unlocking SME Growth

Farleys Solicitors, 3 Mead Way, Shuttleworth Mead, Padiham, Burnley, BB12 7NG

09:00 - 12:00

The Marketing Meetup Lancashire
TMM Lancs - 27th Jan.jpg.jpg
LBV Hub Networking
25 Mar 2026 - 25 Mar 2026

The Marketing Meetup Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin