The New Debt Recovery Protocol

On 1 October 2017 the Ministry of Justice quietly introduced the new Pre-Action Protocol for Debt Claims.

The new Protocol aims to encourage early negotiations and co-operation between creditors and debtors. It tries to encourage them to use alternative dispute resolution procedures where possible, in an attempt to reduce the number of cases getting to court. It describes the conduct the court will normally expect of parties prior to the issuing of proceedings.

The Protocol applies to any business (including sole traders and public bodies) claiming payment of a debt from an individual (including a sole trader), however it does not apply to business-to-business debts unless the debtor is a sole trader.

Read a copy of our Briefing Note entitled “The New Debt Recovery Protocol” for more information about about the Protocol, expert commentary and practical points to help creditors avoid getting caught up in the Protocol.

To discuss this matter in further detail and how it may affect your business, please contact a member of the Rooks Rider Solicitors Dispute Resolution team.



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