PRMS Ltd
FAQ
1 –
OBTAINING YOUR MONEY WITHOUT RECOURSE TO LEGAL ACTION.. 3
WHAT IS
A `LETTER BEFORE ACTION?’ 3
DO I
NEED TO NOTIFY YOU IF I HAVE BEEN PAID ON A LETTER BEFORE ACTION?. 4
WHAT IF
PRMS LTD RECEIVES A RESPONSE TO THE LETTER BEFORE ACTION?. 4
IS IT
POSSIBLE THAT YOU COULD ISSUE PROCEEDINGS WITHOUT CONSULTING ME?. 4
2 –
ISSUING A CLAIM (LEGAL ACTION) 6
WHAT IF
I AM NOT HAPPY WITH THE RESULT AND I WANT TO TAKE COURT ACTION?. 6
1. THE STATUS
OF THE DEFENDANT. 6
NOTES
FOR GUIDANCE WHEN ISSUING COURT ACTION (CLAIM) 7
3. SUING THE
CORRECT DEFENDANT. 7
5. LIMITED
COMPANIES REGISTERED NO. 8
6. PROVIDING
INITIALS OF INDIVIDUALS. 8
8. WHEN YOUR
CASE IS NOT STRAIGHTFORWARD.. 8
9. WHAT IS
YOUR COMPANY’S CORRECT NAME?. 8
10.
CANCELLING INSTRUCTIONS FOR COURT ACTION.. 9
11.
THE ARBITRATION ACT 1996. 9
13.
SCOTLAND & NORTHERN IRELAND.. 9
WHAT IS
A STATEMENT OF TRUTH AND HOW DOES IT AFFECT MY CASE?. 9
WHAT IF
A DEFENCE IS FILED?. 10
THE
IMPORTANCE OF THE SMALL CLAIMS TRACK.. 10
WHAT
HAPPENS AFTER WE HAVE ISSUED COURT ACTION FOR YOU?. 11
WHAT IF
THE DEFENDANT IS PLAYING FOR TIME?. 11
HOW WE
KEEP YOU FULLY INFORMED.. 12
PAYMENTS
TO YOU AFTER ISSUE. 12
CHEQUES
MADE PAYABLE TO US. 12
FULL
AND FINAL SETTLEMENT.. 12
VERY
IMPORTANT INFORMATION CONCERNING CLAIMS,
JUDGMENTS & EXECUTION.. 14
ENTERING
JUDGMENT AND METHODS OF EXECUTION.. 14
THE
IMPORTANT THINGS TO REMEMBER AT THIS STAGE: 14
ACTIONS
WHERE THE HIGH COURT ENFORCEMENT OFFICER IS INSTRUCTED.. 16
ACTIONS
WHERE THE COUNTY COURT BAILIFF IS INSTRUCTED.. 16
A `Letter Before Action’ is exactly
what it says. It is a letter sent by us on your behalf, notifying the
other party of the intention to take legal action . It is made very clear that
unless the issue is resolved, court proceedings will
result.
An important part of the Letter
Before Action is to ensure that costs are not awarded against you. It’s very easy to get stuck with
unexpected legal bills when your ‘debtor’ points out to the judge that they
would have paid up if only they had been formally warned that a court case might
result. A Letter Before Action is also a lot less expensive than
solicitor’s and court costs.
Another reason to issue a Letter
Before Action, is that in more than 80% of cases, it is often effective at convincing the other party to come to an
agreement.
If you do not send a
Letter Before Action you put yourself at a serious disadvantage if the Defendant
takes issue with you on the question of costs. The Court takes the view that in
most cases the proper course of action is to give a warning before issuing
proceedings. If the Defendant claims that they would have paid if they had
received a Solicitors letter, then in 99 cases out of 100 they will escape
having to pay the costs and you will have to bear them.
No matter how many
letters or reminders and even threats of legal action you may have sent, the
Court takes the view that the Defendant is entitled to a Solicitors letter
giving them notice of intention to start legal proceedings. The Court’s
viewpoint is there is then clearly no doubt in the Defendants mind as to what
the next step will be. If one of
your letters, or a letter from a Debt Collection Agency, threatens legal
proceedings, this is not considered the same by the Court if the matter of costs
becomes an issue.
A seven day letter is by
far the best Letter Before Action to send. We can send a three day letter for
you, but you run the risk here of difficulties if the Defendant’s cheque crosses
with the letter in the post (even if the Defendant sends it second class) and
proceedings are issued and costs become an issue.
As stated previously, it
is far better to send a Letter Before Action as in almost every case, it has a
success rate in excess of 8O%.
There are clearly
occasions when time is critical and the decision to issue proceedings far
outweighs any consideration with reference to the recovery of costs. If, for
example, you are owed several thousand pounds and you have concerns over the
financial status of the defendant, or you are concerned that you want to get
priority of a Warrant of Execution (i.e an order requesting that the High Court
Enforcement Officer visit the debtors premises in order to seize goods to the
value of the debt) ahead of other creditors, then in such circumstances speed
and not the issue of costs, would dictate what decision to make with regard to
whether or not you send a Letter Before Action.
Yes. Please inform us if you have been paid after we
have sent the Letter Before Action - we
need to know. There is always a need to come back to us about a Letter
Before Action, so that we can update our files.