As a Prompt Payer member you can request our Overdue Account stickers which over the years have proven to be one of our most popular benefits when customers need a gentle push.
As a general rule, court proceedings should be seen as a measure of last resort as they are invariably costly, time-consuming and may not achieve the commercial solution needed by your business. A breach of contract letter before action or a letter of claim as it is often termed provides formal notification of an impending lawsuit.
It may indeed be enough to prompt payment and satisfaction of the outstanding debt where a client has refused to pay an invoice and is in breach of contract. As most businesses want to avoid time-consuming and costly litigation, such a letter provides an opportunity to settle the matter out of court.
A well-written letter before action provides a clear and strong signal regarding the seriousness of the matter at hand and emphasises that if necessary court action will be commenced. Under the Civil Procedure Rules (CPR), a claimant is obliged to send such a letter before commencing legal proceedings. The Pre-action Protocol sets out how parties should act when attempting to resolve matters prior to commencing court proceedings.