The latest pre-action protocol for debt claims creates extra hoops for creditors to navigate, says Peter Thompson QC
Pre-action Protocol No 13, in force since 1 October 2017, provides extra hoops through which financial institutions and other creditors are expected to jump before having recourse to the courts. The broad aim is to deter creditors from using the courts for debt recovery. Since April 2015, Protocol No 1 has covered the same ground less prescriptively: it laid down that ‘litigation should be a last resort’ and a creditor should be expected, before issuing proceedings, to allow the debtor 14 days to respond to a detailed statement of the claim, a summary of the facts and the disclosure of relevant documents. Protocol 13 goes further and requires, in addition, the delivery of 10 pages of documents including an information sheet, a response form and a statement of income and expenditure and allowing 30 days for the debtor to respond. This must be the biggest turn-off for creditors since the Grayling hike
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