Letter before claim
Legal & insolvencyA formal warning that court action may follow if a debt is not resolved.
Overview
This letter is often part of the pre-action process for debt claims.
It gives you a chance to respond or settle before court action.
Why it matters
- It is a final warning before a claim is issued.
- Responding early can prevent a CCJ.
- It can help you arrange a payment plan.
FAQs
Do I have to respond to a letter before claim?
You should respond, even if you dispute the debt, to avoid default judgment.
Will it affect my credit score?
Not directly, but court action that follows can.
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