The Letter Before Action (also known as the "7 day letter") is the letter telling your debtor that unless you receive full payment of the debtwithin 7 days you will take court action against them.
Once we have received details of the debt on line, the Letter Before Action will be dispatched immediately with e-mail confirmation to you that it has been sent.
We willnext advise you both in the Case Management System and by e-mail when the 7 days has expired. We will ask whether the debt has been paid , advising you if the sum has been paid to us, of any progress or offers, and if no response , whether you wish to issue the claim.
Thedebtor is required to pay you directly. If however we receive payment, or an offer, we will let you know.
Upon joining Debt Collector Online, you will have a number of Letters available to you, and more letters can be easily purchased through the Top Up facility.
The Letter Before Action is importantbecause the attitude of the Courts is that you should act reasonably in relation to proceedings. If no opportunity is given to the Debtor to pay the debt prior to the issue of the court action, the Court may not order the debtor to pay your legal costs.
It may be that you have already given sufficient warnings to the Debtor and you wish to proceed directly to a claim. However,The Solicitor's Letter Before Action does tend to have some effect and its use is recommended. Showing that you have instructed a solicitor to pursue the debt may just be enough to persuade the deliberate late payer that you are serious and are willing to take action for to recover your debt.
It is important to remember at all stages that if the debtor sends you payment for less than the full debt indicating that it is in full and final settlement, and you take that payment, then you will be deemed to have accepted that amount in full and final settlement and you will lose your right to claim the remaining amount or any interest.