Letter before action: what it must say and how long to give

A letter before claim is the last step before issuing proceedings in England and Wales. Where a business claims a debt from an individual, the Debt Claims protocol fixes the contents and gives 30 days. Everything else follows the Practice Direction.

Published 3 August 2026·5 min read

A letter before action — properly a letter before claim — is the formal notice you must send before starting a court claim in England and Wales. Where a business claims a debt from an individual, the Pre-Action Protocol for Debt Claims applies and the debtor gets 30 days. Every other claim follows the Practice Direction on Pre-Action Conduct, where the period must simply be reasonable — usually 14 days for a straightforward debt.

Which regime applies to you

Claimant	Defendant	Regime	Reply period
Business, sole trader or public body	Individual (including a sole trader)	Pre-Action Protocol for Debt Claims	30 days from the date on the letter
Individual	Anyone	Practice Direction on Pre-Action Conduct	reasonable — 14 days for a simple debt
Business	Limited company or other business	Practice Direction on Pre-Action Conduct	reasonable — 14 days for a simple debt

The protocol's own words: it "applies to any business (including sole traders and public bodies) claiming payment of a debt from an individual (including a sole trader)" and does not apply to business-to-business debts unless the debtor is a sole trader (paragraph 1.1).

What a protocol letter of claim must contain

Paragraph 3.1 is a checklist, and courts treat it as one:

the amount of the debt, and whether interest or charges are continuing;
where the agreement was oral — who made it, what was agreed (as far as possible in the words used), and when and where;
where it was written — the date, the parties, and a statement that a copy can be requested;
if the debt has been assigned — details of the original debt and creditor, when it was assigned and to whom;
an explanation of why any instalment offer already made is not acceptable;
how to pay, and how to discuss payment options;
the address for the Reply Form;
an up-to-date statement of account, or the figures brought up to date in the letter itself;
the Information Sheet and Reply Form at Annex 1 to the protocol; and
a Financial Statement form (Annex 2, from the Standard Financial Statement).

Two mechanical rules sit alongside: the letter must be clearly dated at the top of the first page and posted the same day or the next (paragraph 3.2), and it must be sent by post — email is an addition, not a substitute (paragraph 3.3).

The clock after the letter

30 days, from the date at the top of the letter, before proceedings may start (paragraph 3.4). Allow for a reply posted at the end of that period.
If the debtor requests a document or information, you must provide it — or explain why you cannot — within 30 days (paragraph 5.2).
If the debtor replies and no agreement follows, you must give at least 14 days' notice of your intention to issue before you do (paragraph 8.2).
If the debtor says they are seeking debt advice, you must allow reasonable time, and in any event not issue less than 30 days after the completed Reply Form or after supplying requested documents, whichever is later (paragraph 4.2).

Why non-compliance costs money

The court will expect the protocol to have been followed and will take non-compliance into account when giving directions (paragraph 7.1) — with the consequences set out in paragraphs 13 to 16 of the Practice Direction. In practice that means a stay while the steps are taken, an adverse costs order, or interest reduced or disallowed on a claim you otherwise win. The court looks for compliance in substance and does not care about minor technical slips, but a 14-day letter with no Information Sheet where the protocol applied is not a technical slip.

The same paragraphs bite on ADR. Both sides are expected to consider mediation or negotiation, and a party who ignores a proposal to settle risks a costs penalty even in victory. Propose something specific in the letter — the Small Claims Mediation Service, a civil mediation provider, or a without-prejudice call.

Interest: pick the right basis

Contractual interest at the rate in the agreement, if there is one. A rate that is a penalty rather than a genuine pre-estimate of loss is unenforceable, and in a consumer contract an excessive rate is challengeable under the Consumer Rights Act 2015.
Statutory interest for commercial debts — 8% above the Bank of England base rate, plus a fixed recovery sum of £40 (debt under £1,000), £70 (£1,000 to £9,999.99) or £100 (£10,000 and over) under section 5A of the Late Payment of Commercial Debts (Interest) Act 1998. This applies only where both parties act in the course of a business.
Section 69 County Courts Act 1984 interest, usually 8%, is awarded by the court in proceedings. You claim it on the claim form; you do not demand it before issuing.

Two traps

Limitation. A simple contract claim must be issued within six years of the money falling due (Limitation Act 1980, section 5). Correspondence does not stop the clock. A written acknowledgment of the debt or a part payment does restart it (sections 29-30) — so keep the email in which the debtor says they will pay.

Winding-up threats. Never threaten a statutory demand or a winding-up petition against a company in a letter before claim. Where the debt is genuinely disputed on substantial grounds, presenting a petition is an abuse of process, and the company can obtain an injunction and its costs against you.

Get the letter right first time

Our guided letter before action applies the correct regime to your facts, calculates the reply date, sets out the interest basis properly, lists the enclosures the protocol requires, and blocks the combinations that make a letter non-compliant — a 14-day period from a business to an individual debtor, a missing Information Sheet, or email-only service.

→ Letter before action