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Money Claim Letter for the United Kingdom

Money Claim Letter Template for England and Wales

A Money Claim Letter is a formal written demand for payment under English and Welsh law, serving as the final step before initiating legal proceedings. It outlines the debt details, payment history, and consequences of non-payment, while complying with the Civil Procedure Rules' pre-action protocols. This document represents a crucial step in debt recovery, providing clear documentation of the attempt to resolve the matter before court action.

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Money Claim Letter

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What is a Money Claim Letter?

A Money Claim Letter is a essential tool in debt recovery under English and Welsh jurisdiction, typically used when previous informal attempts to secure payment have failed. This document serves as the final formal demand before court proceedings, demonstrating compliance with pre-action protocols required by the Civil Procedure Rules. The letter should clearly state the amount owed, including any interest or additional charges, provide evidence of the debt, and give a reasonable deadline for payment. It's crucial to maintain a professional tone while clearly stating the intention to pursue legal action if payment is not received.

What sections should be included in a Money Claim Letter?

1. Sender's Details: Full name, address, and contact information of the creditor

2. Recipient's Details: Full name, address of the debtor

3. Debt Details: Amount owed, date incurred, reference numbers

4. Payment History: Summary of payments made/missed and current balance

5. Payment Demand: Clear statement of amount required and payment deadline

6. Legal Warning: Statement of intention to take legal action if payment not received

What sections are optional to include in a Money Claim Letter?

1. Interest Calculation: Details of statutory or contractual interest being claimed on the debt

2. Previous Correspondence: Reference to prior attempts to collect the debt and communications history

3. Payment Plan Option: Proposed installment arrangements if willing to accept staged payments

What schedules should be included in a Money Claim Letter?

1. Statement of Account: Detailed breakdown of charges and payments

2. Original Invoices: Copies of original invoices as evidence of debt origin

3. Payment Instructions: Bank details and payment methods accepted

4. Communications Log: Record of previous payment requests and responses

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use
Relevant legal definitions




















Clauses
















Industries

Limitation Act 1980: Primary legislation governing time limits for bringing claims. Specifies statutory limitation periods for different types of claims, including debt claims.

Late Payment of Commercial Debts (Interest) Act 1998: Primary legislation that provides for statutory interest on late payments in commercial transactions and compensation for debt recovery costs.

County Courts Act 1984: Primary legislation establishing jurisdiction and powers of county courts in handling money claims and enforcement procedures.

CPR Part 7: Civil Procedure Rules detailing how to start proceedings, including the formal requirements for filing a claim form and particulars of claim.

CPR Practice Direction Pre-Action Conduct: Guidelines for steps parties should take before commencing legal proceedings, including requirements for correspondence and information exchange.

CPR Part 3.4: Civil Procedure Rules regarding strike out of statements of case, including grounds for striking out weak or improperly formulated claims.

CPR Part 16: Civil Procedure Rules specifying requirements for statements of case, including what must be included in particulars of claim.

Late Payment of Commercial Debts Regulations 2013: Regulations implementing EU Directive on combating late payment in commercial transactions, including fixed compensation amounts.

County Court Mediation Service Order 2003: Regulations governing the court-annexed mediation service, providing alternative dispute resolution options before full litigation.

Contract Law Fundamentals: Common law principles governing formation and enforcement of contracts, including offer, acceptance, consideration, and breach.

Debt Recovery Principles: Common law principles specific to debt recovery, including proving the debt, quantification, and enforcement methods.

Doctrine of Consideration: Common law principle requiring that a contract must be supported by consideration (something of value) to be enforceable.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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