Pre-Action Protocol for Debt Claims: a plain-English guide for SMEs

Thinking about issuing a County Court claim for an unpaid invoice? Before you do, the Pre-Action Protocol for Debt Claims (PAPDC) sets out fair steps you’re expected to follow. Getting these right improves recovery rates, reduces disputes, and protects you on costs if court becomes necessary.

This guide explains when the Protocol applies, what to send, key timelines, and how to decide the best next move.

Does PAPDC apply to your case?

• Yes - full Protocol applies when a business creditor pursues an individual (including a sole trader).
• Not strictly — but mirror the steps for disputes between limited companies/LLPs. Courts still expect reasonable pre-action conduct: clear letters, evidence, and fair deadlines.
• Scotland/NI have different civil procedures; this guide focuses on England & Wales.

Your objectives before court

• Give the debtor a clear summary of the claim and how to respond.
• Provide documents they reasonably need to understand the debt.
• Allow a fair response window (30 days for individuals/sole traders).
• Create a clean paper trail showing proportionate behaviour.

The documents to line up

• Contract/terms or acceptance (PO, signed order, email acceptance).
• Invoices & statement of account, with credits and part-payments marked.
• Proof of supply/performance (PODs, sign-offs, delivery notes, approval emails).
• Interest/charges basis: contractual clause or statutory framework, with precise dates.

Timeline at a glance

Day 0 — Letter Before Action (LBA): For individuals/sole traders, give 30 days to respond from the date of the letter. For B2B, 14–30 days is common good practice.

Days 1–30 — Engage and disclose: Answer reasonable queries and share documents promptly. If the debtor is engaging in good faith, a short extension can be sensible.

Day 31+ — Decide your route: If there’s no payment or meaningful response, escalate to further pre-court collections, a solicitor letter/issuing a claim, or agree a plan if they now propose terms.

What your LBA should cover (content checklist)

• Correct legal names and addresses for both parties.
• Amount due with invoice numbers and due dates.
• Interest/fees and how they’re calculated (rate, period, basis).
• How to pay (bank details/link) and a named contact for queries.
• Deadline and what happens if they don’t respond.

Handling typical responses (and what to do)

• “We never got the invoice.” Resend with original send evidence; set a crisp date for payment or a substantive reply.
• Quality dispute or set-off. Ask for specifics and documents. Offer a pragmatic inspection/remedy window. If weak, explain why and restate the deadline.
• Cash-flow difficulty. Consider a short, written plan with dates and consequences for default. Keep it realistic and documented.
• Silence. Send one concise chaser on/after the deadline, then escalate.

ADR, proportionality, and tone

Courts like to see proportionate behaviour. For contested matters, a short without-prejudice call or a simple written mediation proposal can help. Keep it light-touch for lower values — the aim is to close the gap, not to create procedural overhead. Maintain a professional tone and consider vulnerability; fair treatment is both ethical and effective.

When to issue a claim (and when not to)

Issuing may be right when you’ve complied with PAPDC (or mirrored good practice for B2B), the debtor has ignored or stonewalled, the amount justifies fees, and enforcement prospects are reasonable. Sometimes a firm solicitor letter achieves the same outcome at lower cost — but avoid empty threats. Choose a route you’re willing to follow.

Record-keeping: small habits, big impact

• Create a single folder per debtor with the contract/terms, invoices, statement, proof, and correspondence.
• Keep a brief log: dates sent, responses, documents supplied, and deadlines.
• Stick to one professional email thread for the “official” dialogue; avoid fragmented messages across channels.

Common pitfalls to avoid

• Vague sums or “ASAP” deadlines. Use precise totals and dates — they perform better and look credible to a judge.
• Over-claiming interest/fees. If in doubt, calculate carefully and state your basis explicitly.
• Issuing too early. Non-compliance risks costs penalties and delay.
• Threatening steps you won’t take. It undermines your position and invites delay.

Choosing the right route for your case

With paperwork lined up and timelines met, pick the channel that fits the value, urgency, and dispute level:

• Pre-court collections partner to handle compliant chasing and free your time.
• Solicitor route for a formal letter and, if required, claim issue and judgment.
• Post-judgment enforcement (e.g., High Court Enforcement) if you already hold a CCJ.

Quick compliance checklist

• Right Protocol? (individual/sole trader vs company/LLP)
• Accurate totals with clear basis for any interest/charges
• Evidence enclosed or available on request
• Fair response window (30 days for individuals/sole traders)
• Engagement recorded; reasonable extensions considered
• Next step chosen proportionately to value and prospects

This insight is general information for England & Wales and not legal advice. Complex disputes (e.g., alleged defects, misrepresentation, or substantial counter-claims) warrant tailored advice.