Letter Before Action (LBA)
A letter before action is essential to the debt recovery process and can wake customers up and prompt them to make payment of an overdue balance before you take legal action. It sets out the amount that is owed, the date the amount became due, and the deadline to make payment to avoid legal action.
Most letters before actions request payment to be made within seven days from the date of the letter. If your customer does not respond to the letter before action, legal action may be commenced.
We send all our letters out within 24 hours of receiving instruction to do so and can address these by both post and email if required.
Over the past 12 months, we have seen 76% of debts being settled upon receipt of our letter before action, with no further action being required.
Late Payment Demand
The introduction of the Late Payment of Commercial Debts (Interest) Act 1998 means that you can now claim interest and compensation for the late payment of invoices.
A late payment demand can only be issued when:
- You have supplied goods and services,
- Your debtor bought from you for business purposes,
- The debt is not a consumer credit agreement, and,
- There are no other types of late payment interest in your terms and conditions.
Where you are not able to issue a late payment demand, you can still send your debtor a letter before action.
To get started, you select one of the following options. You will be redirected to a new page to submit the details and make payment for this service. If you have any questions or problems using this service, please contact us.