The Debt Pre-Action Protocol (DPAP) will apply to claims issued from 1 October 2017.
DPAP applies to any business (including sole traders) seeking repayment of any debt from an individual (also including sole traders). Potential claimants will be required to send a “Letter of Claim” to their debtors providing prescribed information regarding the debt and allowing them 30 days to respond before issuing proceedings. Upon receiving the “Letter of Claim”, debtors will be able to use the enclosed reply form to admit the debt, dispute it or request further information and documentation. Depending on the debtor’s response, the potential claimant may be required to allow them further time to seek debt advice or to disclose certain documentation and information to them.
Under DPAP, the parties are also expected to consider attempting to resolve any disputes using Alternative Dispute Resolution. Finally, where no agreement can be reached after an exchange between the parties, the potential claimant should provide the debtor with 14 days’ notice of their intention to issue proceedings.
The DPAP may be viewed in full here.
To view an article on this topic by Luke Berry, an advocate on the South-western Circuit, please click here.