How to Write a Letter Before Action for Unpaid Invoices
The formal demand letter that settles 70–80% of unpaid debts — and a mandatory step before court action in the UK.
What Is a Letter Before Action?
A Letter Before Action (LBA) — also called a Letter Before Claim — is a formal written notice to a debtor that you intend to issue court proceedings if the outstanding debt is not paid. It is the final step before legal action and a mandatory requirement under the Pre-Action Protocol for Debt Claims.
Courts expect claimants to follow the protocol before filing. If you skip this step, a judge may penalise you — even if the debt is genuine and you win the case.
⚠️ Why You Must Not Skip This Step
The court can stay (pause) your claim, refuse to award interest or costs, or order you to pay the defendant's legal costs if you didn't send a proper LBA with a 30-day response period first.
Why Letters Before Action Work
An LBA works because it makes clear that legal action is genuinely imminent. Studies and debt recovery professionals consistently report that 70–80% of debts are settled after a properly drafted Letter Before Action. The reasons are straightforward:
- 🔹 It demonstrates you're serious — not just sending another reminder
- 🔹 It triggers the debtor's awareness of court costs and a possible CCJ on their credit file
- 🔹 It specifies the exact amount including interest, making the total cost of non-payment clear
- 🔹 The 30-day deadline creates urgency
What Must Be Included in an LBA
The Pre-Action Protocol for Debt Claims requires your letter to include specific information. Missing any of these elements could weaken your position if the case goes to court.
1. The Amount Owed
State the exact total including the original debt, any accrued statutory interest, and fixed compensation. Break down how the total is calculated.
2. How Interest Has Been Calculated
Reference the Late Payment of Commercial Debts (Interest) Act 1998. State the rate (8% + Bank of England base rate), the daily amount, and the number of days overdue. Our late payment calculator can generate these figures.
3. The Basis of the Debt
Briefly explain why the money is owed — the contract, the work performed, and the invoice reference number(s).
4. A 30-Day Response Deadline
State clearly that the debtor has 30 days from the date of the letter to pay, propose a payment plan, or dispute the debt. Give the exact calendar date.
5. Payment Details
Include your bank details or preferred payment method so the debtor can pay immediately.
6. ADR Information
Mention that alternative dispute resolution (such as mediation) is available and that you're open to resolving the matter without court proceedings.
7. Warning of Court Action
State that if the debt is not paid or disputed within 30 days, you will file a claim through the county court without further notice.
How to Send Your LBA
For the strongest evidence, send your Letter Before Action by recorded delivery post so you have proof of delivery. You should also send it by email for speed. Keep copies of everything — the letter, the posting receipt, and the email with its timestamp.
Mark the envelope and email subject line clearly: "Letter Before Action — [Invoice Reference]".
What Happens After You Send It
Scenario 1: They Pay
The most common outcome. Most debtors pay within the 30-day window once they realise court action is genuinely forthcoming.
Scenario 2: They Propose a Payment Plan
Consider accepting a reasonable instalment plan — it avoids court costs and gets you paid. Document the agreement in writing.
Scenario 3: They Dispute the Debt
If the dispute is genuine, consider mediation through the Small Business Commissioner or the free Small Claims Mediation Service before proceeding to court.
Scenario 4: No Response
After 30 days with no response, you can file a claim through Money Claims Online or at your local county court. The lack of response strengthens your case.
Frequently Asked Questions
What is a Letter Before Action?
A Letter Before Action (LBA) is a formal written notice sent to a debtor warning them that you intend to issue court proceedings if they do not pay. It is a mandatory step under the Pre-Action Protocol for Debt Claims before you can file a court claim.
How long should I give the debtor to respond?
The Pre-Action Protocol requires you to give the debtor 30 days from the date of the letter to respond. This includes time to seek debt advice, propose a payment plan, or dispute the debt. Do not file court proceedings until the 30 days have passed.
What happens if I skip the LBA and go straight to court?
The court may penalise you for not following the Pre-Action Protocol. This could mean the court stays (pauses) your claim, orders you to pay the defendant's costs, or refuses to award you interest or costs even if you win.
Can I send a Letter Before Action by email?
Yes, but sending by recorded delivery post is stronger evidence. Ideally, send both — email for speed and a posted copy for proof of delivery.
Do I need a solicitor to send a Letter Before Action?
No. You can write and send an LBA yourself. While a solicitor's letter may carry more weight, a well-written LBA from the creditor is legally sufficient and often just as effective.
Generate Your Letter Before Action with Experi
Experi calculates the interest and compensation owed on every overdue invoice. Use your invoice data to draft a Letter Before Action with the exact figures — no manual calculations needed.
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