Before a business sues an individual over an unpaid debt in England and Wales, the court expects it to follow the Pre-Action Protocol for Debt Claims, which is part of the Civil Procedure Rules. This guide summarises the Protocol as published by the Ministry of Justice and the amendment on email service taking effect on 1 October 2026. Scotland and Northern Ireland have separate procedures. It is general information, not legal advice.
When the Protocol applies
The Protocol applies to any business, including sole traders and public bodies, claiming payment of a debt from an individual, including a sole trader. It does not apply to business-to-business debts unless the debtor is a sole trader, or where another protocol applies, such as one for mortgage arrears. A conflicting regulatory obligation, such as an FCA Handbook rule, takes precedence.
What the letter of claim must contain
The creditor should send a letter of claim before starting proceedings. It must state the amount of the debt and whether interest or other charges are continuing, and explain how the debt arose: for a written agreement, its date, the parties and the fact a copy can be requested; for an assigned debt (see assignment of debt), the original creditor, the assignment date and the new owner. If instalments are being offered or paid, the letter should explain why they are not acceptable, and it must give payment details and the address for the reply form.
The letter must also enclose a statement of account including interest and charges, the Information Sheet and Reply Form from Annex 1 of the Protocol, and a Standard Financial Statement form.
The 1 October 2026 email change
The Protocol says the letter of claim should be sent by post. Before the amendment, the creditor could also use additional contact details such as an email address. The Ministry of Justice states that the amendment was agreed by the Civil Procedure Rule Committee on 3 July 2026 and takes effect on 1 October 2026. The amended paragraph 3.3 says that where the creditor has a personal email address for the debtor, it should also send the letter of claim to that address; if it has no personal email address but has other personal electronic contact details, it should use at least one of those methods. A debtor who explicitly asks not to receive post and gives other details should be contacted using them; a condition in the creditor’s standard terms does not count as such a request.
The reply period and debt advice
If the debtor does not reply within 30 days of the date at the top of the letter, the creditor may start proceedings, subject to other obligations such as those under the FCA Handbook, and must allow for a reply posted late in the period. The Information Sheet tells the debtor to check whether the debt is owed and the amount is right, and lists free advice services including Citizens Advice, StepChange and National Debtline; the guide to free debt advice covers the regulated routes.
If the debtor returns the Reply Form within 30 days, the Information Sheet says the debtor and the business have at least a further 30 days to discuss the debt or seek advice before the business takes court action. If the debtor asks for documents, the business must wait at least 30 days after providing them. A debtor who needs time to pay should be able to agree instalments based on income and expenditure, and a refusal of the proposal should be explained in writing.
Documents, disputes and settlement
Where any part of the debt is disputed, including the amount, interest, charges or the creditor’s compliance with statutes and regulations, the parties should exchange enough documents to understand each other’s position. The creditor must provide a requested document or explain why it is unavailable within 30 days. If disagreement continues, both sides should consider alternative dispute resolution, which the Protocol says may be discussion and negotiation, a complaint to the Financial Ombudsman Service for a debt regulated under the Consumer Credit Act 1974 (see complaining to the Financial Ombudsman Service), or mediation for larger sums. After a repayment agreement, the creditor should not sue while the debtor complies, and must send an updated letter of claim if it later wishes to.
Before a claim is issued
If the matter is unresolved after the debtor has responded, the Protocol says the creditor should give at least 14 days’ notice of its intention to issue, unless urgent action is needed, for example because the limitation period is about to expire; the guide to time-barred debts explains that issue. The court takes non-compliance into account when giving directions but is unlikely to be concerned by minor or technical breaches. The Information Sheet warns that a judgment is usually entered on the Register of Judgments, Orders and Fines for six years unless it is paid within one month, as covered in the guide to county court claims and CCJs.
FAQs
Does the Protocol stop a lender from suing?
No. It sets out the conduct the court expects before proceedings, and the court can take non-compliance into account when managing the case.
What if I only reply after 30 days?
The Protocol allows the creditor to start proceedings if no reply arrives within 30 days of the date on the letter, so replying on time matters.
The bottom line
In England and Wales a business claiming a debt from an individual is expected to send a dated letter of claim with a statement of account, an Information Sheet, a Reply Form and a financial statement, and to wait at least 30 days before suing. From 1 October 2026 the letter should also be sent by email where the creditor holds a personal email address. Replying on the form, asking for documents and seeking free debt advice early all help keep the matter out of court. This is general information, not legal advice.
Sources
- Pre-Action Protocol for Debt Claims, including Annex 1 Information Sheet and Reply Form (justice.gov.uk)
- Pre-Action Protocol update, approved by the Master of the Rolls on 10 September 2026 (justice.gov.uk)
- Civil Procedure Rules: Pre-Action Protocol (PAP) Update: PAP for Debt Claims (justice.gov.uk)