From 1st October, a new regulation – Pre Action Protocol - will come into force which will change how debt can be collected from an individual.
PAP will apply to any business – and that includes sole traders and public organisations – who
The new legislation primarily allows an increased communication period to encourage parties to engage earlier with a focus on reaching an amicable and beneficial resolution without the need for costly legal proceedings. If litigation cannot be avoided, it is hoped that the Pre Action Protocol will support the effective management of the court case.
The regulations
Should the debtor require further information at any point during the process the creditor must provide this within another 30 day time frame and allow a 30 day response time. Court proceedings cannot
Whilst the introduction of the new regulation will protect individuals, the process does increase work and costs for the creditor and will result in penalties should the process not be followed correctly, making it more difficult for businesses to recover overdue invoices.
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