In Brief
Pre-Action Protocol for Debt Claims (PAP : In force on 1st October)
Its aim is to set out a framework for the collection of debts / outstanding monies including service charge arrears.
Notifications
The PAP specifies what information must be provided to the debtor including not just the amount of the debt but how it has arisen, whether any interest is payable, whether the debt can be paid in instalments, the provision of an up to date statement and forms for the debtor to complete and return.
This additional admin is likely to increase the time taken to recover arrears of service charge and rent. The initial letter will need to allow a thirty day response time. If no response is received after thirty days Court proceedings can be issued. If a response is received from the debtor than a suitable reply must be provided and the debtor is then given a further thirty days to respond. If following this action a settlement can’t be reached than a further letter must be sent advising that Court proceedings will be issued within fourteen days.
Disputes
If a dispute proceeds to Court and it can be shown that the PAP has not been complied with then the Court can dismiss the claim.
The PAP will inevitably mean that more careful planning and patience will be required to manage arrears.
This is in brief what will be in place on the 1st of October, you can visit the links below or download the word document for further information.
If you would like any help or advice regarding the collection of rents please contact us