Staring at an unpaid invoice is one of the most frustrating parts of running a business. You've delivered the goods or completed the work, but your cash flow is suffering, and chasing payment is costing you valuable time.

It feels like a lose-lose situation.

This guide will give you a comprehensive overview of how to write a letter before action for a debt claim in England and Wales. We'll empower you to get paid while avoiding the costly mistakes that can derail your claim before it even starts. By using Garfield, all the hard work will be done for you, and in minimal time.

This is your introduction to the LBA, a critical first step in our wider guide to debt recovery in the UK.

First, Why is a Letter Before Action Legally Required?

Let's clear one thing up straight away: a Letter Before Action (LBA) isn't just a strongly worded email. It's a formal, mandatory step required by the English and Welsh courts. It’s your most powerful tool for getting paid without going to Court.

Understanding the Pre-Action Protocol for Debt Claims

The English and Welsh Courts have a rulebook called the Civil Procedure Rules (CPR). These are the rules that govern civil claims. Within these rules is a specific guide called the Pre-Action Protocol for Debt Claims.

Don't worry about the legal jargon. Here's what it means for you.

The Court expects you and your debtor reasonably to try and resolve the dispute before filing a claim. The pre-action protocol for debt claims sets out the steps you must take, and sending a compliant LBA is a key requirement. Sending a compliant letter shows the Judge you’ve acted fairly and given the debtor a final chance to pay.

The LBA's Role: Your Final Chance to Avoid Court

Think of the LBA as a formal, final warning shot. It clearly outlines the debt, and gives the debtor one last opportunity to settle the matter before you begin legal proceedings.

Its official purpose is to encourage communication and settlement. By setting everything out in black and white, it often prompts payment from debtors who were previously ignoring your reminders.

The Consequences of Skipping This Step

Skipping this step or getting it wrong can have serious consequences.

If you go straight to Court without sending a proper LBA, a Judge can penalise you. Even if you win your case and the debt is genuine, the Court could refuse to award you interest or might even make you pay some of the debtor's legal costs.

In short: a compliant LBA protects you and strengthens your position immensely.

How to Write a Letter Before Action: A High-Level Overview

Writing an LBA involves several key steps. These include:

• Your Details and the Debtor's Details: Ensuring accuracy in legal names and addresses. See Step 1 for more.
• A Clear Summary of the Debt: Providing a concise, factual account of the debt, including amounts, dates, and agreement details. See Step 2 for details.
• Calculating and Claiming Interest and Compensation: Adding legally permissible interest and compensation. See Step 3 for specifics.
• Setting a Clear and Correct Deadline for a Response: Giving a legally compliant timeframe for the debtor to respond. See Step 4 for deadlines.
• Explaining the Consequences of Non-Payment: Clearly stating the actions you'll take if the debt isn't settled. See Step 5 for examples.

Remember, a well-crafted LBA is crucial for a successful debt recovery process.

Top 5 Letter Before Action Mistakes (And How to Avoid Them)

Sending an LBA is a formal legal process, and simple letter before action mistakes can undermine your entire case. Here are the most common pitfalls.

Mistake 1: Using an Aggressive or Threatening Tone

It's tempting to let your frustration show, but you must remain professional. An aggressive or threatening letter can work against you in Court. Stick to the facts, be firm, and keep emotion out of it. The letter's purpose is to resolve the dispute, not to escalate it.

Mistake 2: Getting the Response Deadline Wrong

As mentioned above, providing the wrong timeframe, especially the 30-day period for individuals and sole traders, is an error. A Judge may see this as an unreasonable attempt to rush the debtor and could rule that your pre-action conduct was flawed.

Mistake 3: Failing to Include All Required Information

A vague letter is an ineffective one. If you forget to include the outline of the debt or the calculation of interest, the debtor can argue they didn't have enough information to respond. This weakens your position and can cause delays.

Mistake 4: Not sending the LBA by post

Always send your LBA via post. This is what the Pre-Action Protocol expects you to do. It is also helpful to send the LBA by email as well for extra peace of mind.

Mistake 5: Using an Outdated or Generic Template

Searching for a letter before action template free England and Wales can be risky. Many online templates are outdated, applicable only to other types of claims, designed for US law, or simply missing key information required by the Civil Procedure Rules. Using a non-compliant template can be just as bad as sending no letter at all.

You've Sent the LBA. What Happens Next?

So, you've written a compliant letter. What happens if a letter before action is ignored? Here’s a guide to the possible outcomes.

How to Correctly Send Your Letter

First, the practicalities. If you are sending the LBA yourself, print and personally sign two copies of your letter. Keep one for your records. Send the other via a tracked postal service like Royal Mail Signed For 1st Class. Keep the postage receipt in a safe place. Better still, save yourself the time and hassle and get Garfield to send the LBA on your behalf.

Scenario 1: The Debtor Pays in Full

This is the best-case scenario and the goal of the LBA. If payment arrives, send a brief, polite email or letter confirming receipt and stating that the matter is now closed.

Scenario 2: The Debtor Disputes the Claim or Makes an Offer

If the debtor responds to dispute the debt or makes a partial payment offer, you should consider it. The Court expects you to be reasonable and to engage in negotiation or consider Alternative Dispute Resolution (ADR), like mediation, to try and find a solution. This does not mean you have to offer a discount where it is unwarranted but you should consider the time cost of money and that getting paid a lot of the claim now is better than all of the claim much later after a dispute. Respond professionally and keep a record of all communications.

Scenario 3: The Letter Before Action is Ignored

If the deadline passes with no response and no payment, you have now fulfilled your pre-action obligations. You have shown the Court that you acted reasonably. Your next step is to begin the court claim process. As outlined by Citizens Advice, this involves completing specific forms and paying a court fee. Garfield will take these steps on your behalf, saving you much time and hassle.

Can I Write a Letter Before Action Myself? DIY vs. Professional Help

This is the big question: can I write a letter before action myself? The short answer is yes, but you need to weigh the pros and cons carefully.

The DIY Route: Pros and Cons

The main advantage of writing the letter yourself is monetary cost. It’s free. However, the biggest risk is non-compliance. If you miss a crucial detail or get a legal point wrong, you could damage your chances of recovering the debt and face cost penalties from the court. Plus, it's hardly free in terms of time - you will have to spend time preparing the letter and checking against the Pre-Action Protocol for Debt Claims that you have got it correct.

When to Hire a Solicitor (And What it Costs)

A traditional solicitor provides expert assurance, which is valuable for very large or complex debts. However, this comes at a price. The typical solicitor cost for a letter before action in England and Wales ranges from £100 to £300 plus VAT, which can be disproportionate for smaller debts. And this is just the first stage of the process. The costs will quickly mount up if you use a traditional solicitor for the entire claim.

The Smart Alternative: Using Garfield AI

Garfield AI offers the perfect solution. You get the peace of mind of an SRA-regulated service that ensures your LBA is fully compliant with English and Welsh Court rules, but at a fraction of the cost of a traditional law firm.

Our platform guides you through the process, asks the right questions, and generates a legally sound Letter Before Action tailored to your specific case. You get solicitor-grade expertise with the simplicity of smart technology, all for clear, fixed fees at each step of the process.

Frequently Asked Questions (FAQs)

How much does a solicitor charge for a letter before action in the UK?

A solicitor typically charges between £100 and £300 + VAT. The exact cost depends on the complexity of your case, the amount of debt, and the seniority of the lawyer handling it.

What is the correct response time for an LBA in the UK?

For debts owed by individuals or sole traders, you must give 30 days. For debts owed by a limited company or LLP, there is no set period of time but 30 days is considered reasonable by the Courts.

Can I send a letter before action by email?

While you can send a copy by email for speed, it should not be your only method. You are required by the Pre-Action Protocol to send it by post as well.

What's the difference between a Letter Before Action and a late payment reminder?

A late payment reminder is an informal, friendly nudge. It is not a legally prescribed document. A Letter Before Action is a formal, legally required document that officially notifies the debtor of your intention to start court proceedings. It marks the start of the formal pre-action protocol.

Do I need a Letter Before Action for a small claim?

Yes, absolutely. The Pre-Action Protocol applies to small claims (debts up to £10,000 in England and Wales) as well as larger ones. It is a mandatory first step, regardless of the amount you are owed.

Is it more effective for a law firm to send a LBA?

Yes, it is. A debtor is more likely to take a LBA seriously, and pay, when it comes from a law firm than when a business sends it. Whilst Garfield gives its users the choice of putting LBAs on either their own letterpaper, or on Garfield's letterpaper, we recommend they use Garfield's letterpaper to maximise their prospects of swift payment.

Conclusion

Writing a compliant Letter Before Action is a critical, non-negotiable step in recovering unpaid invoices in England and Wales. By following the correct structure and including all the required information, you dramatically increase your chances of getting paid without ever seeing a courtroom.

Here are the key takeaways:

• An LBA is a mandatory step under the English and Welsh Civil Procedure Rules.
• Always include the debt details, interest calculations, and a clear deadline.
• Maintain a professional, factual tone and alwayspost the LBA.
• An incorrect LBA can harm your case, even if the debt is valid.

You now have the knowledge to take this crucial step with confidence. Chasing payments is stressful, but you have the power to take back control of the process.

Ready to recover what you're owed? Use Garfield AI to generate a legally compliant, SRA-regulated Letter Before Action in minutes, and let Garfield send it on your behalf, and get the process started today.

How to Write a Letter Before Action: A Step-by-Step Guide

This is your definitive guide to writing a Letter Before Action (LBA) in England and Wales for a debt claim. An LBA is a formal, legally required document that you must send to a debtor before starting Court proceedings. It's a crucial step in recovering unpaid debts and demonstrates to the Court that you've made a reasonable attempt to resolve the issue.

This guide provides a comprehensive, step-by-step breakdown of what to include in your LBA to ensure it's clear, professional, and legally compliant. Follow these instructions carefully to maximize your chances of getting paid without going to Court.

Step 1: Your Details and the Debtor's Details

This sounds basic, but it’s crucial to get it right. Include the full, correct legal names and current addresses for both you (the creditor) and the person or business that owes you money (the debtor).

• For Individuals: Use their full name and current residential address.
• For Limited Companies: Use their registered company name and address as listed on Companies House. You can find this information on the Companies House website (companieshouse.gov.uk).

Example:

• Creditor: [Your Full Name/Company Name], [Your Full Address]
• Debtor (Individual): Mr. John Smith, 123 Main Street, Anytown, AB1 2CD
• Debtor (Company): Acme Ltd, Registered Office: 456 Business Park, Anytown, AB2 3EF

Step 2: A Clear Summary of the Debt (The "Basis of Claim")

You need to state exactly what the dispute is about. Be clear, concise, and factual. Avoid emotional language or accusations.

Include:

• The total amount of money owed: State the exact amount in pounds and pence.
• The date of the original invoice(s) and their reference numbers: This allows the debtor to easily identify the debt.

Example:

"We are writing to you regarding an outstanding invoice for £1,250.00. This relates to invoice number INV-2025-03-15, dated 15th March 2025.

Step 3: Calculating and Claiming Interest and Compensation

For a letter before action for unpaid invoice, you have a legal right to claim interest. For a business-to-business LBA you may also have a right to claim compensation.

Under the Late Payment of Commercial Debts (Interest) Act 1998, for business-to-business transactions you can charge statutory interest on late payments. This is 8% plus the Bank of England's base rate. You can also claim a fixed sum for the cost of recovering the debt (£40, £70, or £100 depending on the debt size). You might also have an alternative entitlement in the form of a clause entitling you to interest in your contract.

For business-to-consumer debts, you may again have a contractual clause or you might have a claim under the County Courts Act.

• Calculate the Interest: Use an online calculator or consult our guide to charging late payment fees.
• Determine the Fixed Sum Compensation for Late Payment Act debts:
  • £40 for debts up to £999.99
  • £70 for debts between £1,000 and £9,999.99
  • £100 for debts of £10,000 or more

State clearly that you are adding this interest and compensation to the total amount owed.

Example:

"In addition to the outstanding principal of £1,250.00, we are also claiming interest. As of today's date, this amounts to £45.20. We are also claiming compensation for debt recovery costs in the sum of £70. The total amount now due is £1,365.20."

Alternatively, Garfield will calculate all of this for you automatically.

Step 4: Setting a Clear and Correct Deadline for a Response

You must give the debtor a reasonable amount of time to respond. The letter before action response time depends on who you are writing to.

• For Individuals (including Sole Traders): The Pre-Action Protocol is strict. You must give them 30 days to reply. This allows them time to seek legal advice.
• For Businesses (Limited Companies, LLPs): While there isn't a strict rule, 30 days is still considered reasonable by the Courts.

The deadline should be calculated from the date of the letter. Be specific and state the exact date by which you expect a response.

Example:

• "We require a response to this letter within 30 days of the date of this letter, i.e., by 17th July 2025."

Giving the wrong deadline is a common mistake that can invalidate your letter.

Step 5: Explaining the Consequences of Non-Payment

Finally, you must clearly state what you will do if they fail to pay by the deadline. This is a crucial part of the LBA and demonstrates the seriousness of your intent.

Use formal but unemotional language. Avoid threats or aggressive statements.

Example:

"Should we not receive payment in full or a substantive response to this letter by [Date], we will have no alternative but to commence legal proceedings in the County Court to recover the full amount owed, together with interest, compensation, and court costs. We reserve the right to issue proceedings without further notice."

Common Mistakes to Avoid When Writing an LBA

Even with a clear guide, it's easy to make mistakes that can weaken your position. Here are some common pitfalls to watch out for:

• Using an Aggressive or Threatening Tone: As mentioned earlier, keep it professional.
• Getting the Response Deadline Wrong: Make sure you offer a reasonable deadline.
• Failing to Include All Required Information: Ensure you've covered the basis of the debt, and interest calculations.
• Be Sure To Post the Letter: Always post the letter, as well as send it by email.
• Using an Outdated or Generic Template: Free templates can be risky. Ensure compliance with English and Welsh law.
• Sending the LBA Too Soon: Make sure you've already sent payment reminders and given the debtor a chance to pay informally. It's also a very good idea to pick up the phone and call the debtor. Sending an LBA as the first step can be seen as unreasonable.
• Not Keeping a Copy for Your Records: Always retain a copy of the letter.
• Ignoring a Response from the Debtor: If the debtor responds, you are legally obliged to consider their response and engage in reasonable negotiation.

By following these steps and using the examples provided, you can create a legally sound and effective Letter Before Action that significantly increases your chances of recovering the debt owed to you. Remember to always keep a copy of the letter for your records.