How to Issue a Money Claim in the UK Small Claims Court
Introduction
In the UK, many businesses, consumers, and other petitioners seek financial redress in the UK County Court, otherwise known as the UK Small Claims Court. This legal procedure was designed to offer an efficient and effective way to help people pursue claims without having to seek legal representation or pay hefty legal bills.
If you are keen to have a debt problem resolved through this system, then our small claims for money claims guide is here to help you navigate the process.
Struggling with unpaid debts? Start recovering what's owed to you today.
The Need for Representation in the Small Claims Court
The small claims process was designed to support individuals and businesses to make a claim without the need for any legal representation. This does not mean that you can't have representation if you choose to, but the cost of representation would usually be higher than the value of the claim, and so most people represent themselves.
Understanding What You Can Submit a Claim for
The Small Claims Court provides you with the ability to make money claims up to a maximum of £100,000. There are two different types of money claims you can file – a Fixed Sum money claim or an Unspecified money claim:
Fixed Sum Money Claim
When you have a fixed amount that you want to claim, then you will need to follow the Fixed Sum track. The track that you follow is dependant on the amount that you want to claim for and the complexity of the case.
For claims up to £10000, you need to follow the Small Claims Track. This track allows you to claim monies owed for debt, rent arrears, fault or poor quality products, services, contract breaches, recovery of goods, consumers claims, property damage, unsupplied goods and point of principle claims.
The Fast Track claim process can be used for claims that are under £25000 or in cases whether there is limited complexity and the claim is between £25000 and £50000.
The Multi Track claim process is used for legally and factually complex cases with money claims that do not exceed £100000.
Unspecified Money Claim
If you are claiming damages or compensation, then there will not be a fixed sum that you can pursue. In these cases, you will need to file an Unspecified Money Claim so that your case can be appropriately assessed.
It’s important to note that you cannot claim for any emotional stress, consequential loss, or time lost when you submit your claim to the court.
The Small Claims Processing Times
The purpose of the Small Claims Court is to complete claims as quickly as possible. Therefore, you can expect your claim to be assessed as quickly as six weeks after submission if it is undefended. Claims can take up to six months if a hearing is required and if the claim is disputed. You will be kept up to date with the progress of your claim so that you are aware of how things are progressing.
However, it is important to note that there is a time limit in place to ensure cases are dealt with fairly and in a timely matter. Currently, you are expected to take your claims to court within six years on the incident happening. However, the Limitation Act 1980 provides greater detail on the time limits you will face.
Starting the Small Claims Process – a Guide
If you are ready to begin a money claim with the Small Claims Court, you will need to first be able to prove that you have made attempts to settle the matter before issuing legal proceedings and that you have fulfilled all pre-court obligations such as taking part in dispute resolution, providing evidence of your claim and more.
When you are certain that you have met all the pre-claim requirements, you can submit a letter of claim to the defendant. This letter should provide all the information required for them to investigate the issues raised without having to contact you for more information. You can use the following checklist so that you supply all the required information:
· Your full name and address
· Your trading name and address (if applicable)
· A summarised overview of the facts that you have based your claim on
· A clear overview of what outcome you want to achieve and an explanation of how you have calculated the amount you are requesting
· The date you want to receive a response from the defendant
· An overview of any documentation you require from the defendant that you do not have
· A clear overview of the costs you are claiming – such as interest on the monies owed and any monies you have spent resolving the issues that the defendant is accused of creating
When you have completed these steps, you will then have all the information you need to lodge your case for consideration by the Small Claims Court. To do this, you will need to submit an N1 Claim Form that gives the details of you, the defendant and the claim you are making, as well as the value of the claim and where you want it to be heard. Your claim cannot be submitted without this form being correctly completed in full.
Collating the Right Evidence for Your Claim
It is essential that any claim lodged with the Small Claims Court is backed up with the appropriate evidence. Some of the evidence that you can supply includes:
· Proof that you have attempted to reach an agreement with the defendant before issuing a claim
· Evidence that you have tried to engage with dispute resolution services
· Any physical evidence you have related to the claim, including invoices, correspondence, terms and conditions, evidence of postage, evidence of payments, a rental contract for an ex tenant debtor.
· Witness statements where appropriate – these need to be in first person and include the full contact details and names of any witnesses. Each statement needs to be signed by the witness and ended with 'I believe that the facts of this witness statement are true.
Communicating with the Defendant
It is vital that you keep evidence of all communication with the defendant, including copies of emails, fax and letters that are sent. If you do not have the contact details of the defendant, then it is important to get access to them so that you can prove you have taken reasonable steps to communicate with them.
At DebtTrace, we support claimants to find up to date and accurate address tracking so that you can be certain that your communications reach the right person. Starting at just £19.99 plus VAT, you can get the up to date and current address within seven days of submitting your request.
If you need more details, you can upgrade to our advanced service and get information that includes phone numbers and financial information that may help your case.
Covering the Costs of Your Claim
If you win your case, then the defendant will be liable to pay your costs, but if you lose, then you will need to pay your own. Plus, if you follow a Fast Track claim and lose, then you will typically be liable for the costs of the other party.
However, if you are in receipt of certain benefits or are on a low income, then your fees may be waived on application to the court, especially if paying them will cause you significant hardship. However, if you discontinue your claim at any point, you will not be liable for any costs.
Agreeing to a Settlement Before the Claim is Heard
Many people find that settlement discussions will take place even after the claim has been submitted for consideration. If you find that you are offered a settlement that you want to take, then you will need to let the court know once the settlement is agreed upon. This notice will then give the court the ability to terminate proceedings and stop any hearings that are due to take place.
There is also a N279 Discontinuation Form that needs to be completed and submitted as formal notice of a request to discontinue. This can be submitted up to any time before the evidence starts being heard by the judge.
This article may be of interest 10 Steps to Take to Recover a Debt More Successfully
DebtTrace Are Here to Help
At DebtTrace, we work with many clients who are considering submitting a claim to the Small Claims Court. Our tracing agents service allows you to get the most up to date contact information on the defendant without having to go through undue stress and worry.
Our people tracing team are knowledgeable, friendly, and on hand to help you with choosing which service to use and would be happy to hear from you. If you need help to trace a debtor, then check out our services today – we can’t wait to help you!
For more advice and information on tracing debtors
Struggling with unpaid debts? Start recovering what's owed to you today.