Before taking someone to small claims court, you must send a letter before action (LBA) - a formal notice giving them a final chance to settle the dispute. It outlines what’s owed, the deadline to respond, and the intention to take legal action if ignored. In this guide, we break down what an LBA is, how it applies to small claims, and what you need to include to give yourself the best chance of getting paid without going to court.
What is a letter before action?
A letter before action (LBA) is a formal notice you send to the other party before starting a legal claim. It’s a final chance for them to settle the dispute before court proceedings begin. An LBA should clearly outline:
What the dispute is about (e.g. unpaid invoice, faulty goods, or breach of contract).
What action you want them to take (e.g. payment of a debt or a refund).
A deadline for response (typically 14 days).
The intention to take legal action if the issue is not resolved.
What does it need to include for a small claims court?
If you are planning to use the small claims court, your letter before action should include:
Your details: Full name and address.
The recipient’s details: The name and address of the person or business you are claiming against.
A clear summary of the dispute: What the issue is and why you believe they owe you money.
What you are claiming for: The exact amount and how it has been calculated.
A deadline to respond: Usually 14 days for individuals or 30 days for businesses (following the debt pre-action protocol).
How they can settle: Payment details if money is owed, or an alternative resolution option.
The consequences of ignoring the letter: Stating that legal action will be taken if they do not respond.
Sending a well-structured letter before action improves your chances of settling the dispute without going to court, saving time and legal fees. You can learn more top tips in our guide to what is a letter before action.
💡Editor’s insight: “People often ask if a letter before claim is different from a letter before action. The answer? They’re the same! Both are formal letters sent before legal action begins, giving the other party a final chance to resolve the dispute before court proceedings start.”
Basic example of a letter before action
Below is an example of a basic sample letter before action for an unpaid debt. When in doubt, always speak to a qualified litigation solicitor who can create something tailored for your unique circumstances.
[Your Name]
[Your Address]
[City, Postcode]
[Your Email]
[Your Phone Number]
[Date]
To: [Recipient’s Name]
[Recipient’s Address]
Subject: Letter Before Action – [Brief Summary of Dispute]
Dear [Recipient’s Name],
I am writing to formally request [describe what you are asking for, e.g., payment of £500 for unpaid services provided on [date]]. Despite previous attempts to resolve this matter, the amount remains outstanding.
Under the terms of our agreement, payment was due on [date]. As this has not been received, I am now giving you 14 days from the date of this letter to make full payment. If I do not receive payment within this timeframe, I will have no option but to pursue legal action through the small claims court.
If you wish to discuss this matter, please contact me at [your phone number/email]. Otherwise, please arrange payment to [your payment details].
Yours sincerely,
[Your Name]
What to do before starting a claim
Before taking your dispute to court, you should:
Try to resolve the issue informally: A letter before action is a legal requirement in most cases. It also gives the other party a chance to settle the matter without going to court.
Ensure the claim is suitable for small claims court: The small claims track is for disputes involving up to £10,000 in England and Wales.
Gather supporting evidence: You need to prove your case with contracts, invoices, emails, and any other relevant documents.
Consider mediation: Courts encourage mediation before taking legal action, as it can save time and money.
How to make a small claim
1. Collect evidence
To strengthen your case, gather:
Copies of emails, letters, or messages exchanged.
Receipts, invoices, or contracts.
Photographic evidence if applicable (e.g., faulty goods or property damage).
2. Letter before action
Send a letter before action, giving the recipient a chance to settle before legal action begins. Keep a copy of the letter and proof of postage as evidence.
3. Complete the claim form
If no response is received, you can file a claim:
Online: Use the Government’s Money Claim Online (MCOL) service.
By post: Fill out a N1 claim form and send it to the local county court.
You will need to pay a court fee, which varies depending on the claim amount (starting from £35 for claims under £300).
Is there pre-action protocol for small claims?
There isn’t a specific pre-action protocol for small claims, but that doesn’t mean you can skip important steps before going to court. Instead, you must follow the Practice Direction on Pre-Action Conduct, which is a general set of rules that apply when there’s no specific protocol for a claim.
What are pre-action protocols?
Pre-action protocols are official steps designed to help people resolve disputes before taking legal action. They encourage parties to share information, explore settlement options, and avoid unnecessary court cases. Some legal matters, like personal injury claims or debt recovery, have their own detailed protocols.
👉 You can learn more in our guide to what are pre-action protocols.
What does this mean for small claims?
Before starting a small claim, you should:
✅ Send a letter before action – This should clearly explain your claim, the amount owed (if relevant), and how the other party can settle it.
✅ Give them time to respond – Usually, at least 14 days for individuals and 30 days for businesses.
✅ Try to resolve the issue – Courts expect you to attempt negotiation or mediation before taking legal action.
Skipping these steps could backfire. If you go straight to court, the judge might:
❌ Reject your claim – If you haven’t given the other party a fair chance to respond.
❌ Order you to pay extra costs – If they believe you didn’t follow the correct process.
Taking the right steps early on can save you time, stress, and legal fees. If you're unsure, getting legal advice can help ensure you handle your claim correctly.
What happens after you make your claim?
Once your claim is submitted:
The court notifies the defendant: The person you are claiming against receives a claim form.
They have 14 days to respond: They can pay the full amount, dispute the claim (and submit a defence) or request more time to respond.
A court hearing may be scheduled: If the claim is disputed, a judge may request a hearing where both parties present their case.
Judgment is made: If you win, the court orders the defendant to pay the amount owed. If they refuse, enforcement action (such as bailiffs or a charging order) may be needed.
FAQ
What happens if I don’t send a letter before action?
Most courts require a letter before action as part of the pre-action process. If you skip this step, the court may delay or dismiss your case.
How long does a small claims case take?
Most cases take several months, depending on whether the claim is disputed and whether a hearing is required.
What if the defendant ignores the claim?
If they fail to respond within 14 days, you can request a default judgment, meaning the court will order them to pay.
Do I need a solicitor for small claims court?
No, small claims cases are designed to be simple, and legal representation is not required. However, you can seek advice from a litigation solicitor if needed.
Final thoughts
A letter before action is a simple but powerful step that can help resolve disputes without going to court. Many claims are settled at this stage, saving time, stress, and legal fees. If you're unsure about your next steps, getting legal advice can help you feel more confident before making a claim.
Disclaimer: This article only provides general information and does not constitute professional advice. For any specific questions, consult a qualified legal professional.
