What is Pre-Action Protocol?

Pre-Action Protocols are rules set out in the Civil Procedure Rules (CPR) that describe the steps courts expect parties to take before issuing court proceedings. For unpaid invoices, the relevant protocol is the Pre-Action Protocol for Debt Claims.

Purpose of pre-action protocols: - Encourage early settlement of disputes without court action - Ensure both parties have enough information to understand the claim - Promote alternative dispute resolution (mediation, arbitration) - Help courts manage cases efficiently when they do proceed

Requirements for debt claims: 1. Send a Letter Before Action (LBA) — Include the amount owed, how it's calculated, any interest/compensation claimed, a 30-day response deadline, and information about alternative dispute resolution 2. Allow adequate time to respond — At least 30 days for the debtor to reply 3. Consider Alternative Dispute Resolution — Mediation through the Small Claims Mediation Service is free and should be considered before court action 4. Provide supporting evidence — Attach copies of invoices, contracts, and any relevant correspondence

• **Consequences of non-compliance:**
• If you file a claim without following pre-action protocols, the court may:
• Stay (pause) your claim: until you comply
• Order you to pay the defendant's costs: even if you win
• Refuse to award interest: or limit it
• Take non-compliance into account when making decisions about costs

For debtors receiving an LBA: You should respond within the 30-day deadline. You can admit the debt and propose payment terms, dispute some or all of the debt with reasons, or request more information. Ignoring an LBA makes your position worse if the matter goes to court.

Key point for freelancers and small businesses: Following the pre-action protocol properly actually increases your chances of getting paid without going to court. The formality of a compliant LBA signals to the debtor that you're serious and prepared to follow through.