Pre-action protocol

Before you issue a small claim, the rules require you to warn the other side and give them a genuine chance to settle. Skip this step and you risk losing your court fees or your interest — even if you win. Here is exactly what you must send, when, and what happens if either party ignores the rules.

What happens if I issue a claim without sending a Letter Before Action?

The court will not refuse to accept the claim form. However, under CPR 44.2(5)(a), the judge must take pre-action conduct into account when deciding costs. A claimant who issued without any warning letter may find that court fees, interest, or even part of the claimed costs are disallowed — even if they win on the merits. In egregious cases the court can order the non-compliant party to pay the other side's costs.

Does the Pre-Action Protocol for Debt Claims apply to business-to-business debts?

No. The Debt Protocol applies only where the creditor is a business (including a sole trader or partnership) and the debtor is an individual, including an individual sole trader. A debt owed by one company to another, or by a partnership to a company, falls under the General Pre-Action Practice Direction rather than the Debt Protocol. The timetable under the General Practice Direction is shorter and more flexible.

How long must I wait before issuing proceedings?

Under the Debt Protocol, 30 days from the date the Letter of Claim is deemed received. Under the General Practice Direction, a reasonable period depending on the complexity of the dispute — typically 14 days for a straightforward consumer claim, 28 days or more for a substantial commercial dispute. If limitation is imminent, you may issue without waiting and explain that to the court.

What if the defendant ignores the Letter Before Action entirely?

The protocol is a one-way obligation: you must comply even if the defendant does not engage. If the defendant refuses to respond, there is nothing more you need do beyond the Letter of Claim and a reasonable wait. You then issue proceedings. The defendant's silence will not count against you on costs — it is the defendant who has breached the protocol by failing to respond.

Do I have to provide the Information Sheet and Reply Form for every debt claim?

Only if the Debt Protocol applies — that is, where the creditor is a business and the debtor is an individual. The Information Sheet and Reply Form are prescribed documents that must accompany the Letter of Claim in Debt Protocol cases. For general consumer disputes or business-to-business claims, the General Practice Direction applies and only a clear Letter of Claim is required.

Does sending the Letter Before Action stop the limitation clock?

No. Sending a Letter Before Action, however formal, does not stop the limitation period. Time continues to run until court proceedings are issued. If limitation is close, issue the claim on Money Claim Online at the same time as sending the LBA — or even before. The court expressly recognises this situation and the General Practice Direction provides that urgent issue is acceptable where delay would cause the claim to become time-barred.

Small Claims · Glossary

Last reviewed: 6 July 2026

is the mandatory procedure requiring a claimant to send a

(and, for consumer debt cases, the accompanying Information Sheet, Reply Form and Financial Statement Form) and allow a reasonable waiting period before issuing court proceedings — with cost consequences for either party who fails to comply.

Where this comes from

Pre-Action Protocol for Debt Claims

— effective 1 October 2017; applies where the creditor is a business and the debtor is an individual.

Practice Direction — Pre-Action Conduct and Protocols

— the residual Practice Direction that applies to all claims not covered by a specific protocol.

— the court must consider parties' conduct, including pre-action behaviour, when deciding costs.

CPR 1.1 (Overriding objective)

— the duty to deal with cases justly, including encouraging parties to settle before litigation.

Two protocols, one principle

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 covering particular types of claim (debt, personal injury, professional negligence, construction, defamation, judicial review, and others) and a residual General Pre-Action Practice Direction that applies to everything else.

The single principle running through all of them is that proceedings should be a last resort. Parties are expected to exchange enough information to understand each other's position, narrow the issues in dispute, and genuinely consider settlement before asking a court to adjudicate. This saves court time and costs for everyone, including the parties themselves.

Compliance is not voluntary. The court reviews pre-action conduct at the case management and costs stages. A claimant who issues without giving any warning, or a defendant who ignores every letter, can both face costs sanctions even if they ultimately win the case on the merits.

For most small claims, the relevant protocol is either the

(if the creditor is a business and the debtor is an individual) or the general

Practice Direction on Pre-Action Conduct

(for everything else, including consumer disputes against traders, business-to-business claims, and property disputes). Knowing which applies determines what you must send and how long you must wait.

The Debt Protocol: what to send and when

The Pre-Action Protocol for Debt Claims, which came into force on 1 October 2017, applies where the creditor is a business and the debtor is an individual (including an individual sole trader). It does not apply to mortgage repossession claims, insolvency proceedings, or debts owed between two businesses. The protocol requires more than a simple demand letter. The claimant must send a package of four documents:

— setting out the identity of the creditor, the amount owed and how it is calculated, details of any interest or charges being claimed, details of any assignment (if the debt was sold), and a summary of what documents the creditor holds.
— a prescribed form in plain English explaining the debtor's rights and what will happen next.
— a prescribed form allowing the debtor to confirm they owe the debt, dispute it, request more information, or indicate that they need time to pay.
Financial Statement Form
— a form the debtor can use to set out their income and expenditure, supporting a request for a payment plan.

After sending the complete package, the creditor must wait

from the deemed date of receipt before issuing. If the debtor asks for more information within that period, the creditor must supply it within 30 days and the whole matter goes on hold while that request is outstanding.

The General Practice Direction: the fallback for everything else

For claims not covered by a specific protocol — including most consumer disputes where the claimant is an individual suing a trader, and all business-to-business claims — the General Pre-Action Practice Direction applies. It is shorter and more flexible.

The core requirement is to send a clear Letter of Claim before issuing. The letter should identify the parties, summarise the facts of the dispute, state the legal basis of the claim (breach of contract, breach of statutory duty under the Consumer Rights Act 2015, negligence, and so on), quantify the loss, and invite the other side to respond within a reasonable period. For straightforward consumer disputes, 14 days is generally considered reasonable. For more complex commercial matters, 28 days or longer may be expected.

Both parties are also expected to consider alternative dispute resolution — mediation, an ombudsman scheme, an industry ADR scheme — before issuing. A refusal to consider mediation without good reason is itself a conduct point that can affect costs. For claims below £10,000 going to the small claims track, the court may refer the parties to its free small claims mediation service in any event.

How it works in practice

James is a sole trader plumber. A customer — an individual homeowner — owes him £2,800 for work completed in January 2026. The customer has not paid and is not responding to calls. James wants to issue a small claim. The Debt Protocol applies because James is a business creditor and the debtor is an individual.

Step 1: Prepare the letter package

Letter of Claim + Information Sheet + Reply Form + Financial Statement Form

Step 2: Send by first-class post

Address to debtor's last known address

Step 3: Deemed receipt

Second business day after posting (assumed)

Step 4: Wait 30 days from deemed receipt

Minimum wait before issuing

32 days after posting the package

During the 30-day window the customer does not respond. James then issues on Money Claim Online, paying a court fee of £115 (the fee for a claim of £2,800). Because he has complied fully with the Debt Protocol, he is in a strong position to recover that court fee and statutory interest at 8% per annum from the date of judgment when he wins or the customer defaults.

If James had issued immediately after the first unpaid invoice, without any Letter of Claim, the judge could have disallowed his court fee and pre-judgment interest as a costs sanction — meaning he would recover the debt but lose his procedural expenses, reducing his actual recovery.

Common pitfalls for claimants

Sending only a demand letter without the full Debt Protocol package.
If the Debt Protocol applies and the Information Sheet, Reply Form, and Financial Statement Form are not included, the Letter of Claim does not comply. The court can penalise this on costs. Use the prescribed forms available on the Ministry of Justice website and send them with every debt claim against an individual.
Thinking an LBA stops the limitation clock.
It does not. The limitation period keeps running regardless of any pre-action correspondence. If you are close to your six-year limitation deadline, issue proceedings at the same time as sending the LBA — the protocols expressly permit this when limitation is imminent.
Not keeping copies of everything sent.
If the defendant disputes compliance with the protocol at the costs hearing, you must be able to prove you sent the Letter of Claim and when. Keep copies of the letter, the enclosures, and your proof of postage or email delivery confirmation.
Issuing before the 30 days has expired without a good reason.
Under the Debt Protocol, issuing before 30 days without explaining why — for example because limitation is imminent — is a breach. The court will want to understand why you could not wait, and "I wanted to put pressure on the defendant" is not a good reason.
Applying the Debt Protocol to business-to-business claims.
The Debt Protocol applies only to claims where the debtor is an individual. A business-to-business debt claim falls under the General Practice Direction, which does not require the prescribed forms or the 30-day wait. Applying the wrong protocol wastes time and money.
Refusing ADR without a good reason.
The court expects both parties to consider alternative dispute resolution before issuing. An outright refusal to mediate — even if you go on to win at trial — can result in a costs reduction. A short response explaining why mediation is not appropriate in this case is better than silence.

Frequently asked questions

Sources & further reading

Pre-Action Protocol for Debt Claims
— full text, including prescribed forms (justice.gov.uk)
Practice Direction — Pre-Action Conduct and Protocols
— the general practice direction (justice.gov.uk)
— general rules about costs, including CPR 44.2(5)(a) on conduct
— the overriding objective and parties' duty to the court
Make a court claim for money
— gov.uk guidance including the small claims process
Consumer Rights Act 2015
— the statute whose implied terms underpin most consumer small claims

Need a protocol-compliant LBA?

Start My Claim generates the Letter of Claim, Information Sheet, Reply Form, and Financial Statement Form — everything required for Debt Protocol compliance — in minutes. Fixed fee of £49.

Last reviewed: 6 July 2026.

The Pre-Action Protocol for Debt Claims has been in force since 1 October 2017 and has not been amended by recent legislation. Verify current prescribed forms on the justice.gov.uk website before sending.

This page is explanatory only and is not legal advice. Start My Claim is self-service software, not a law firm — its tools help you build and run your own case.