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Tag Archives: Bad debts

New Pre-action Protocol for Debt Claims from October 2017

The Ministry of Justice has published the final version of the new pre-action protocol for debt claims.  This will come into force on 1st October 2017.  It will apply where a business (including sole traders and public bodies) claims payment of a debt from an individual including a sole trader.  Apart from the exception of the sole trader, it will not apply to other business to business debts. The protocol …Read More

Cheques sent in full and final settlement

Will a cheque for a lower amount than that claimed but sent in full and final settlement constitute a binding acceptance if cashed or retained? The answer is sometimes. In the United States once the receiving party banks a cheque tendered in full and final settlement, as a matter of law agreement as to the terms of settlement is inferred whatever the actual intention of the recipient. That is not the case in …Read More

Collecting bad debts: new bankruptcy threshold

Funds cannot be recovered from those who have none. It is therefore important to find out as much as you can about your customer and identify who they are (an individual, limited company, firm) before extending a line of credit to them and not to allow any credit to reach unmanageable proportions. But if, despite your credit control procedures, you are landed with a bad debt, how do you ensure …Read More