Drafting a Commercial Letter Before Action (LBA)
Before issuing a County Court money claim (MCOL), the Civil Procedure Rules (CPR) require claimants to send a formal Letter Before Action giving the debtor 14 to 30 days to pay.
Essential Components of a Statutory B2B LBA
- Invoice Details: Invoice numbers, dates, contract description, and original due dates.
- Statutory Interest Assertion: Explicit reference to the Late Payment of Commercial Debts (Interest) Act 1998, noting the daily accrual rate.
- Statutory Compensation: Itemised £40 / £70 / £100 per overdue invoice under section 5A.
- 7-Day or 14-Day Deadline: Clear date by which full payment must clear.
- Notice of Immediate County Court Proceedings: Clear notification that failure to settle will result in a Claim Form issued via Money Claim Online (MCOL), adding court issue fees and statutory debt enforcement costs.
Generate an automated, audit-ready Letter Before Action
The Casewright Late Payment Recovery Pack (£49) generates formal statutory demand letters citing the 1998 Act with an itemised interest schedule and MCOL Part 7 particulars ready for filing.