On the 1st October 2017 the Pre-Action Protocol for Debt Collection comes into force. This is an important change in how debts are managed and now is a good time to see how those changes will affect your business going forward.
This Protocol applies to any business (including sole traders and public bodies) claiming payment of a debt from an individual (including a sole trader). The business will be referred to as the “creditor” and the individual will be referred to as the “debtor”. This Protocol does not apply to business-to-business debts unless the debtor is a sole trader.