How to Write a Letter Before Action for Debt Recovery (UK)

Updated 2026. Covers the Pre-Action Protocol, interest, costs, and next steps for England & Wales.

If someone owes you money and won't pay, a Letter Before Action (LBA) is almost always your mandatory first step. Under the Pre-Action Protocol for Debt Claims, you must send a formal letter before issuing court proceedings. If you skip it, the court can order you to pay the other side's costs — even if you win.

What a Letter Before Action must include

For the Protocol to count, your letter must:

• State who you are and who owes the money
• Explain the debt — what it's for, when it arose, how much is owed
• Include copies of any contract, invoice, or evidence
• Give them 30 days to respond (or 14 days for business-to-business debts)
• State that you will start court proceedings if they don't pay or dispute it
• Enclose a Reply Form and Financial Means Statement (if the debtor is an individual)

Can I add interest to the debt?

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998 (business debts) you can claim statutory interest at 8% above the Bank of England base rate, plus a fixed compensation fee (£40–£100 depending on the debt size). For consumer debts, you can claim reasonable interest if your contract allows it.

What happens after I send the letter?

1. They pay — great, done. Get it in writing that the matter is settled.
2. They dispute it — you must consider their dispute reasonably. If you can't agree, you may need mediation or court.
3. They ignore it — after 30 days you can issue court proceedings via Money Claim Online (MCOL) for claims up to £100,000.

What if they still don't pay after the court order?

A court judgment is not a guarantee of payment. If they don't pay, you can enforce it via:

• County Court bailiffs (warrant of control)
• Attachment of earnings (deducted from wages)
• Third-party debt order (frozen bank account)
• Charging order (against property)

Frequently asked questions

Can I send a letter before action myself?

Yes. Anyone can send a letter before action. It is a formal letter setting out what is owed, why, and a deadline for payment. No solicitor required.

What happens if they ignore my letter before action?

You can then issue court proceedings. The court will expect to see that you sent a reasonable letter first — it shows you tried to resolve the dispute.

How much does it cost to recover a debt in the UK?

For claims up to £10,000 (small claims track), court fees range from £35 to £455 depending on the amount. If you win, the defendant pays your costs.

Do I need a letter before action for small claims?

The Pre-Action Protocol for debt claims requires you to send a formal letter before issuing court proceedings. Skipping it can cost you the other side's legal costs even if you win.