No Response to Letter Before Action – What Now?
No Response to Letter Before Action – What Now?
No response to Letter before Action is a very frustrating situation. Whether it is you or your business that has issued the letter, the content being ignored only serves to fuel tension.
A letter before action (LBA) should not be confused with a letter before claim. A letter before action is usually the precursor to the matter being handed over to a Debt Collection Agency or Law firm.
A letter of claim is usually issued by a third party representative prior to issuing a claim form to the courts. Letter before action template is very often used as the final letter by an individual or a Business credit control team.
It will advise that as all previous communications and attempts to get paid have been ignored, the matter will now escalate.
The LBA will likely have followed a payment reminder, then a final reminder if goods or services have been provided. Many companies use a 7-day letter before action as a ‘last chance saloon’ for non-paying customers.
Thousands of Letter before actions are sent every year but many are not paid. If you are in a position where there is no response to letter before action then it is time to act. If you do not act then you may fail to get paid at all.
Options to Collect After No Response to Letter Before Action
If you have no response to letter before action, it would appear that your customer or debtor is now deliberately avoiding payment of the monies owing to you. There are options you can take to advance on this situation.
Top tip: Instruct a Professional Debt Collection Agency
The UK is home to some of the most professional Debt Collection Agencies across the globe. It is widely viewed as a far more cost effective and expedient option. Working with a Professional Debt Collection solution can help expedite the whole situation so that you get paid faster.
A legitimate and professional debt collection service will clearly outline the cost to you to recover the debt from outset. This sounds fairly simple however choosing the best debt collection agency to collaborate with is essential.
Choosing a Debt Collection Agency to work with should be done with a diligent mind. Not all Debt Collection Agencies are the same, there are the good, the bad and the downright ugly. You will want peace of mind that you are working with a Professional organisation that serves your best interests.
A Professional Debt Recovery service will act in a manner that is an extension of you and your brand. Almost, an ambassador for your company so it is essential you work with a solution that has integrity.
Federal Management is the UK’s most prestigious Debt Collection firm having worked with high level organisations such as high roller casinos, Premier League football clubs and top Investment firms.
Use a law firm
There are some specialist legal firms that specialise in progressing the matter through the courts. This route can be very expensive and is avoided by many companies simply because the fees are too excessive.
Not only the legal fees charged by the courts but the hourly rated and disbursements charged by the law firm themselves. They generally charge per action meaning it could end up costing you far more than you bargained for.
It is no coincidence that we have a number of law firms as clients to recover their unpaid legal fees.
We feel that tells its own story in some respects however it is important to point out that Law firms are a more appropriate avenue for debt recovery of heavily disputed debts. This is especially true where there are large sums and contracts involved.
Start your own court action
Issuing your own county court action can be a perilous journey by way of time and ensuring all pre-action legal protocols are met. An insight into the pre-action conduct and protocols necessary can be found on this government website.
This option can be extremely time-consuming. If the relevant protocols and rules are not adhered to, you could end up with your case being thrown out of court and even costs awarded against you.
No response to letter before action? – If you have issued a letter before action and it has been ignored, give us a call today and speak to one of our friendly advisers.
We can advise you on your best options to recover what is yours.
What is a letter before action?
A letter before action is a final warning sent to the debtor informing them of their debt and that debt collection or legal action may be taken against them if they do not respond with payment or settlement.
These letters are often used as a last resort in order to get the debtor’s attention and prompt them into taking action.
What happens if there is no response to letter before action ?
If there is no response to the letter before action, then you may have options available to you.
Take professional and swift debt collection action against the debtor. Alternatively, legal action is an option.
What is the success rate of sending a letter before action?
The success rate of sending a letter before action varies depending on the debtor and their circumstances. Generally, if a letter before action is sent at the right time and in an appropriate way then it can be successful.
It should also be noted that there are other factors to consider which may influence the success rate such as the amount of debt owed, type of debt, etc
What if there has been no response to a letter before action to a foreign customer?
For the best advice on dealing with this, speak to one of our team about our highly effective international debt recovery solutions.