The Pre-Action Protocol for Debt Claims

Transcription

1 The Pre-Actin Prtcl fr Debt Claims

2 The Pre-Actin Prtcl fr Debt Claims The final versin has nw been released and it has been cnfirmed that this will cme int frce n 1 Octber The Prtcl aims t encurage early cmmunicatin, reslutin withut curt prceedings and acting in a reasnable and prprtinate manner. It will apply t letters befre claim sent t debtrs n r after 1 Octber 2017 if they are individuals r sle traders An enhanced 'Letter f Claim' is required, including details f the amunt f the debt, dates and parties t a written cntract, what was agreed in respect f any ral cntracts, details in respect f any assignment and details f hw the debt can be paid. The Letter f Claim must als enclse: an Infrmatin Sheet (Annex 1 t the Prtcl); a Reply Frm (Annex 1 t the Prtcl); and a Financial Statement frm (an example is prvided at Annex 2 t the Prtcl). The Letter f Claim shuld als enclse an up t date statement f accunt fr the debt, the mst recent statement f accunt tgether with infrmatin n interest and/r charges incurred since issue r where n statement has been prvided, state in the Letter f Claim the amunt f interest and ther charges impsed since the debt was incurred. The prpsal that a cpy f the agreement shuld als be prvided has been rejected. The Letter f Claim will hwever, need t prminently state that such dcuments are available upn request An individual will have 30 days t reply t the Letter f Claim. If a request fr further dcumentatin is made then the creditr must respnd t that request, prviding the dcumentatin r therwise explaining why it will nt be prvided, within 30 days In the event f a dispute, Alternative Dispute Reslutin (ADR) shuld be cnsidered. In sme cases, especially where the debt is large, mediatin might be apprpriate The curt will take int accunt nn-cmpliance with the prtcl when giving directins fr the management f prceedings and when making rders fr csts Flwcharts fr the applicability and prcess f the Prtcl are set ut belw Fr further infrmatin cntact: Chris Busby Partner : : Anthny Davies Partner : :

3 Des the Pre-Actin Prtcl fr Debt Claims apply? Is the debt wed by an individual (including a sle trader)? (paragraph 1.1) The Pre-Actin Prtcl fr Debt claims des nt apply Is the debt cvered by anther Pre-Actin Prtcl, such as Mrtgage Arrears? (paragraph 1.4) Is cmpliance with the Prtcl incnsistent with the creditr s regulatry bligatins (such as a principle, rule r guidance in the FCA handbk) (paragraph 1.3) The Pre-Actin Prtcl fr Debt claims des nt apply The Pre Actin Prtcl will apply The regulatry bligatin takes precedence ver the Prtcl 2

4 Pre-Actin Prtcl fr Debt Claims - prcess and timescales Send Letter f Claim t debtr befre prceedings are cmmenced (see paragraph 3.1 fr infrmatin required*) Enclse: (1) Infrmatin Sheet (Annex 1) (2) Reply frm (Annex 1) (3) Financial Statement Frm (Annex 2) (4) Statement f Accunt (para 3.1(b)(i-iii) Has debtr replied within 30 days? Is debtr seeking debt advice? Creditr can cmmence prceedings Creditr must allw debtr a reasnable perid t btain advice befre issuing prceedings (para 4.2 & 4.3) Has the debtr requested additinal dcuments? (para 4.1 & 4.2) Creditr shuld nt start prceedings less than 30 days after prvisin f the dcuments. Dcuments must be prvided within 30 days r creditr must explain why they are nt available (para 5.2) Has the debtr requested time t pay? (para 4.4) Creditr shuld have regard t the Standard Financial Statement when agreeing affrdable sums fr repayment (para 4.4) Where the creditr and debtr cannt reach agreement, they shuld cnsider ADR (para 6) Where agreement cannt be reached, the creditr must give at least 14 days ntice f intentin t cmmence prceedings. (para 8.2) *There is n need t enclse a cpy f the agreement with the letter f claim but it must be made 3 clear t the debtr that a cpy f the written agreement can be requested frm the creditr. 3

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