If you are a business and are owed money by an individual a new Practice Direction has been introduced from 6 April 2009 which provides for certain information to be made available when chasing a debt. This information should be provided before instructing solicitors send a letter before action or instigate any legal proceedings. Although this is not mandatory it is encouraged and if you don’t do this the court can penalise you in costs.

The requirements may be complied with at any time between you first intimating the possibility of court proceedings and the letter before claim.

Information to be provided includes:

·        details of how the money can be paid;

·         statements that the defendant can contact the claimant to discuss possible repayment options, and provide the relevant contact details; and

·         information to the defendant that free independent advice and assistance can be obtained from certain organisations.

sauton@tsplegal.comIf you would like any more information or would like to discuss our fixed costs for Debt Recovery please contact Sharon Auton at the firm’s Colchester office on 01206 574431 or send an email to.

The content of this article is for general information only. All situations are unique and we advise that professional advice should be taken on any particular matter.