Small claims - Some advice

[LosingGrip]

I'm posting on behalf of a friends mother, I've got as much information as I could get from my friend.

Friends Mum (A) was selling her old car. Friends friend (B) wanted to buy it but couldn't afford it all at once. A and B both signed to say B will pay £200 a month until it is paid off. I don't know what the value of the car was worth, I know she did want around £2,000 for it. So under the £5,000 limit for small claims. A has sent off the V5 in Bs name.

B has paid a total of £400 when it should be around £1,200 by now (not sure of exact figures). Clearly A is annoyed and has been told he will pay X on such a date and hasn't.

Am I right in thinking, A needs to send a letter before action recorded delivery to B saying along the lines of 'you need to pay XYZ before xx/xx/xx or the matter will be taken to the small claims court'.

If B fails to pay, A can then make the claim and go from there?

Thanks

[anniesdad]

Not really too sure if there is an actual legal obligation on any layperson writing a letter before action as you put it. But it would be prudent to write outlining the claim and allowing a reasonable period of time in which to demand a response/payment before issuing county court proceedings. 14 days sounds reasonable enough to allow for the defendant being away on holiday etc.

[nitrodave]

They don't need to write a latter first, but it is seen in the court as very favourable. It demonstrates they are trying to resolve this before court action and creates a paper trail of he conversation.

Details on what it should include are here. Make sure it's sent recorded delivery.

https://www.citizensadvice.org.uk/law-and-courts/l...

[Lurking Lawyer]

nitrodave said:

Make sure it's sent recorded delivery.

This gets trotted out all the time. There's no absolute requirement to send letters of claim by recorded delivery. Indeed, there's a very good reason not to sometimes, where it's thought the recipient will just refuse to sign for it.

Query whether the entire balance has become owing yet, if it was agreed to accept an amount per month. Only the missed months are owing, strictly speaking, unless there was some sort of agreement that in the event of a missed payment the outstanding balance would become immediately payable - and I doubt very much the parties applied their minds to that.

(Small claims limit is now £10,000)

[skwdenyer]

Lurking Lawyer said:

nitrodave said:

Make sure it's sent recorded delivery.

This gets trotted out all the time. There's no absolute requirement to send letters of claim by recorded delivery. Indeed, there's a very good reason not to sometimes, where it's thought the recipient will just refuse to sign for it.

Query whether the entire balance has become owing yet, if it was agreed to accept an amount per month. Only the missed months are owing, strictly speaking, unless there was some sort of agreement that in the event of a missed payment the outstanding balance would become immediately payable - and I doubt very much the parties applied their minds to that.

(Small claims limit is now £10,000)

From practical experience, I'd advise at least getting a proof of posting for the letter. Then you can argue that the Interpretations Act deems it has arrived unless there's compelling evidence to the contrary.

[kestral]

LosingGrip said:

I'm posting on behalf of a friends mother, I've got as much information as I could get from my friend.

Friends Mum (A) was selling her old car. Friends friend (B) wanted to buy it but couldn't afford it all at once. A and B both signed to say B will pay £200 a month until it is paid off. I don't know what the value of the car was worth, I know she did want around £2,000 for it. So under the £5,000 limit for small claims. A has sent off the V5 in Bs name.

B has paid a total of £400 when it should be around £1,200 by now (not sure of exact figures). Clearly A is annoyed and has been told he will pay X on such a date and hasn't.

Am I right in thinking, A needs to send a letter before action recorded delivery to B saying along the lines of 'you need to pay XYZ before xx/xx/xx or the matter will be taken to the small claims court'.

If B fails to pay, A can then make the claim and go from there?

Thanks

That is the correct procedure. Send the letter by recorded delivery or at least get proof of posting. You do that because you can then show a court you posted a 'letter before action' requesting payment.

You send a letter before action because if you don't and issue a summons (small claim) without doing it the defendant can then despute the additional costs of issuing the summons with the defence of "that if I had been written to requesting the payment I would have paid it" and the judge will very likely make you pay for your own summons and any other costs you incured due to not issuing a LBA.

I don't understand the A and B part of the post.Maybe you could explain differently. I don't think I need to know who is friends with who just who promised to pay ect.

Edited by kestral on Wednesday 11th April 00:18

Edited by kestral on Wednesday 11th April 00:20

[Red Devil]

kestral said:

I don't understand the A and B part of the post.Maybe you could explain differently. I don't think I need to know who is friends with who just who promised to pay ect.

Blimey, it's not that hard to figure out.

LosingGrip said:

Friends Mum (A) was selling her old car. Friends friend (B) wanted to buy it but couldn't afford it all at once. A and B both signed to say B will pay £200 a month until it is paid off.