1st October 2017 are you compliant
Is your current Debt Collection provider following the correct process for litigation when dealing with your debts for Individuals and Sole Traders?
As failure to comply may cost you dearly in the long run.
So what has changed that I need to be aware of?
On October 1st, 2017 The Pre Litigation Protocol for Debt Claims was brought in to force by The Right Honourable Sir Terence Etherton, Master of The Rolls and Head of Civil Justice.
New rules were brought in to encourage early engagement and communications between the parties.
Enable the parties to resolve the matter without the need to start court proceedings.
Encourage parties to act in a reasonable and proportionate manner in all dealings with one another.
Who will this effect?
Sole Traders, Limited Companies, PLCs, LLP, in fact, anyone carrying out a business transaction when dealing with an individual or a sole trader.
How has the protocol changed?
Previously you were required to give the debtor a reasonable time to respond 7-14 days.
Under the new Pre Ligation Protocol, you will be required to give them 30 days to reply.
So I just send them a letter saying I want my money back in 30 days?
No quite are required to send them a letter with specific information like is it a written or an oral contract together with details of that contact and also advising them of any charges or interest you have applied or intend to apply.
With this letter that is clearly dated at the top, you have to send them a copy of all the following prescribed documents, Information Sheet, Reply form and a Financial Statement Form.
After 30 Days can I take them to Court?
Well that all depends if you get no reply then yes you can send the case to the court.
What if they reply to my letter?
That will depend on their response if they require more information then this should be provided to the debtor if they wish to set up a Payplan then the claimant should make a reasonable attempt to resolve and if they cannot write back to the debtor advising them why a Payplan is not possible.
But what if the debtor says I need to speak to a debt charity?
You need to give them 30 days further in which to seek advice and come back to you before sending them a continuance letter advising you will send the case to court.
So what are the consequences if all of this process is not followed?
Basically, if you fail to comply with the Pre Litigation Protocol your case can be thrown out and you are told to start again losing your court fee and having to wait 30-90 days before you can reissue.
If you have any questions we will be at
The HMO Group and the NLA presents
THE MIDLANDS MEETUP
Saturday 11th November 2017