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How to write a letter before action — Articles

A letter before action (LBA) is the formal written demand you send before starting a court claim. It is not just good practice — the Pre-Action Conduct Practice Direction under the Civil Procedure Rules expects parties to have tried to resolve a dispute before issuing. Skip it and the court may penalise you on costs even if you win.

What an LBA must contain

A clear LBA includes: your full name and address; the recipient's full name and address; the date; a factual account of the debt (contract agreed, work done, invoice issued, non-payment); the exact sum claimed, broken down if possible; any interest calculation (see below); a specific deadline — use a calendar date, not just "14 days"; your bank details for payment; a statement that court proceedings will follow if payment is not made; and your contact details for queries. Plain language is better than legal jargon. Courts read thousands of these letters — clarity and brevity matter.

Setting the right deadline

The Practice Direction specifies that parties must give each other a "reasonable time" to respond. For most straightforward money claims, 14 days is standard and accepted by courts. For more complex disputes — for example, professional negligence or construction claims which have their own protocols — 30 days is the norm. Set the date as a specific calendar date in the letter ("payment by 30 October 2026") so neither party can later argue about when the deadline fell.

Calculating and claiming interest

If the debt is between two businesses, you are entitled to claim interest at 8 percentage points above the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998. With the base rate currently at 5.5%, the statutory rate is 13.5% per year. State the daily rate in the letter so the debtor can see it is accruing. You are also entitled to a fixed debt recovery cost of £40 (debts under £1,000), £70 (£1,000–£9,999) or £100 (£10,000+). For consumer debts, you can claim interest at 8% under the County Courts Act 1984, s.69 if the matter goes to court — state your intention to add it.

How to send it

Send by first-class post and obtain a free Certificate of Posting from a Post Office counter — this is proof of sending (not delivery, but sufficient for most purposes). Also send a copy by email and request a read receipt. Address it to the registered address for a limited company (search Companies House) or to the individual's home address. Do not mark it "without prejudice" — it must be an open letter the court can see. The glossary entry on letter before action explains the distinction from a settlement letter.

What not to include

Avoid threats you cannot carry out (such as threatening criminal proceedings for a civil debt), insults, or vague ultimatums. Do not make demands you are not entitled to. If you are claiming a specific statute applies, cite it correctly — a wrong citation can undermine your credibility. Do not over-complicate with legal jargon: a judge reading the letter later needs to understand it instantly.

If they ignore it

Once the deadline passes with no payment and no substantive response, you may issue a court claim. Use Money Claim Online (MCOL) for claims up to £100,000. Attach your copy of the letter and proof of postage to the claim. If the debtor disputes the claim but had no good reason for ignoring your letter, the court may take that into account when deciding costs. The county court money claim guide covers the full issuing process step by step.

This article is for general information only and is not legal advice. Always check the official source and consult a qualified lawyer for your situation.