Letters Before Action

Letters Before Action (LBAs) or Late Payment Demands are very cost-effective. They are used to secure payment, or to obtain a response from your customer before the commencement of a claim.

What is the success rate?

Overall, 83%+ of LBAs issued by Lovetts result in no further legal action being taken.

Timely use of a Letter Before Action usually achieves a swift payment from a debtor but, of course, results do depend upon:

• when the letters are used
• what prior collection processes you have employed
• if there is a verifiable dispute
• the credit standing of the debtor
• the age of the debt
• the industry concerned

Late Payment Demands

An alternative to a Letter Before Action is a Late Payment Demand that allows you to claim Interest and Compensation under the Late Payment of Commercial Debts (Interest) Act.