What is a Letter of Claim? (LOC)

A Letter of Claim (sometimes known as a ‘Letter Before Claim’ or ‘Letter Before Action’) is a letter putting a person on notice that Court proceedings may be brought against them, this is legally required under pre action protocol.

A Claimant should send a Letter of Claim to the Debtor before County Court proceedings are issued. The Letter of Claim provides the Debtor with one last chance to come to an agreement with the Claimant before County Court proceedings are issued. If the Debtor does not reply to the Letter of Claim within 30 days of the date of the letter, the Claimant may start County Court proceedings. The Letter of Claim should include information about the debt, and it should have with it an information sheet, a reply form and a financial statement form for the Debtor to complete and return to the Claimant. The full requirements for the Letter of Claim are set out in section 3 of the Pre-Action Protocol for Debt Claims – https://www.justice.gov.uk/courts/procedure-rules/civil/pdf/protocols/debt-pap.pdf