If you've received a Letter Before Action, don't panic, but don't ignore it either. This is a formal warning that you're about to be taken to court, and you need to respond before the deadline (usually 14-30 days).
Here's exactly what to do.
Option 1: Pay in full
If you agree you owe the money and can afford to pay, this is the simplest solution. Pay the full amount by the deadline stated in the letter.
Make sure you:
- Get a receipt or proof of payment
- Keep records of the transaction
- Confirm in writing that the debt is settled
Once paid, the matter is closed, and they can't take you to court.
Option 2: Offer a payment plan
If you can't afford to pay in full but agree you owe the money, contact the creditor immediately to propose a payment plan.
Be realistic. Don't offer £50 a month if you can only afford £20. A creditor is more likely to accept a plan they believe you can stick to.
Put it in writing:
- How much you'll pay each week/month
- When payments will be made
- Your bank details or payment method
Example: "I acknowledge I owe £1,500. I cannot pay in full but can afford £100 per month. I propose 15 monthly payments starting on [date]."
The creditor doesn't have to accept your plan, but many will if it's reasonable. They'd rather get paid gradually than risk getting nothing.
Option 3: Dispute the debt
If you don't think you owe the money (or not the full amount), you need to dispute it in writing before the deadline.
Be clear and specific:
- State why you dispute the debt
- Provide evidence (contracts, emails, receipts, photos)
- Respond before the deadline
Example disputes:
- "I never received the goods"
- "The work was not completed as agreed"
- "This invoice has already been paid" (attach proof)
- "The amount claimed is incorrect: the agreed price was £X, not £Y"
Even if they reject your dispute and file a court claim anyway, you'll have the chance to defend yourself in court. A judge will review the evidence and decide.
Option 4: Ask for more time
If you need time to get legal advice or check your records, you can ask for an extension, but don't assume they'll grant it.
Write to them immediately saying: "I received your Letter Before Action. I need more time to review the claim and seek advice. I request a 14-day extension to respond."
Most creditors will grant a short extension if you ask politely and promptly.
What happens if you ignore it?
Don't ignore a Letter Before Action. If you do:
- They'll file a court claim against you
- You'll be hit with court fees (£35-£455) added to what you owe
- If you lose (or don't defend), you'll get a County Court Judgment (CCJ)
- A CCJ damages your credit rating for 6 years
- They can use bailiffs to enforce the judgment
Even if you think the debt is unfair, ignoring it guarantees you'll lose. Respond and defend yourself properly.
Where to get free debt advice
If you're struggling financially and don't know what to do, contact one of these free services:
- Citizens Advice Bureau – citizensadvice.org.uk
- StepChange – stepchange.org (0800 138 1111)
- National Debtline – nationaldebtline.org (0808 808 4000)
- Money Helper – moneyhelper.org.uk (0800 138 7777)
They can help you understand your options, negotiate with creditors, and set up a repayment plan.
Act quickly
The sooner you respond, the better your chances of avoiding court. Even if you can't pay in full, showing you're willing to engage and find a solution can make all the difference.
Do:
- Respond before the deadline
- Be honest about your financial situation
- Keep all correspondence in writing
- Get free debt advice if you're struggling
Don't:
- Ignore the letter
- Make promises you can't keep
- Miss the deadline