Pre-Action Protocol for Debt Claims

The Pre-Action Protocols sit alongside the Civil Procedure Rules and govern what parties must do before issuing court proceedings. There are around 15 specific protocols (debt, personal injury, professional negligence, construction, defamation, judicial review, and others) and a residual General Pre-Action Practice Direction that applies to everything else.

Pre-Action Protocol for Debt Claims

Two protocols, one principle

The single principle running through all of them is that proceedings should be a last resort. The parties are expected to exchange information, narrow the issues, and consider settlement before asking the court to adjudicate. Compliance is monitored at the directions and costs stages: a claimant who issues without trying to settle, or a defendant who ignores correspondence, can both face sanctions even if they ultimately win.

For most small claims, the relevant protocol is either the Pre-Action Protocol for Debt Claims (effective 1 October 2017) or the general Practice Direction. Knowing which one applies and following its requirements is the foundation of any small claim.

When the Debt Protocol applies

The Debt Protocol applies where the creditor is a business and the debtor is an individual (including a sole trader). It does not apply to claims under the Insolvency Rules, mortgage repossession claims, or business-to-business claims.

General Pre-Action Practice Direction

For everything not covered by a specific protocol — including most consumer disputes against traders and most business-to-business claims — the General Practice Direction applies. It is shorter and more flexible:

Sanctions for non-compliance

CPR 44.2(5)(a) requires the court to take into account the conduct of the parties, including pre-action conduct, when deciding costs. The most common sanctions are:

• • Disallowing recovery of court fees (a £455 issue fee on a £10,000 claim)
• • Disallowing or reducing pre-action interest
• • In serious cases, ordering the non-compliant party to pay the other side’s costs even if they win
• • Adverse comment in the judgment — a paper record that follows the claimant in subsequent disputes

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Letter Before Action

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