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First Action Letter

First Action Letter

The “Action Letter” is the next stage of formal legal proceedings following the "7 Day Letter Before Action"  using both the "Late Payment of Commercial Debts Act 1998" and "The Late Payment of Commercial Debts Act-2013" we now apply to the "Action Letter" your costs, back dated interest and compensation to the debt, which the debtor must pay to you. Remember all monies owed are paid directley to you.  

Back Dated Interest- We add to the debt back dated Interest (after 30 days from the date of invoice) at 8.5% which is currently 8% above the current base rate. This can be added even if its not stated in your terms & conditions

Costs- These costs will include the charges you may have had for sending both the “Letter Before Action” and the “Action Letter” and any other reasonable costs you may have had.

Late Payment Compensation- This is a Government table of compensation which is (per invoice) for debts under £1000 £40.00 over £1000 but less than £10.000 £70.00 over £10.000 £100.00


It is always worth considering to issue the “ First Action Letter” prior to any legal debt recovery (Statutory Demands) as perhaps a last chance for your debtor to pay or if it is desirable to keep open a trading relationship with your debtor. The “Action Letter” provides your debtor a further 5 days to pay before any legal action. If your debt is a B2C then only your costs may be added to the debt. 

You can view a sample of the B2B "Action Letter" Here You can view a sample of the B2C "Action Letter" Here

Need to send a "Action Letter" now and have not yet signed up click Here All ready registered click Here