Simple Procedure Rules: Setting Up A Debt Recovery Action
29 November 2016

The name would suggest that the new Simple Procedure Rules will make it easier to initiate debt recovery actions of less than £5,000. However, the new form does require far more information than under the existing system in order for all parties to know as much as possible about the case from the outset. We’re going to talk you through the key points in setting up a debt recovery action under the new Simple Procedure Rules.

Terminology

Before completing the claim form it’s important to be aware of the new terminology which will be being used going forward under the new Rules. The table below illustrates which old terms will be being replaced in a bid to be more user friendly:

The Claim Form

A court action shall now be raised using a Claim Form which now runs to 10 pages and is set out in a series of self-explanatory questions for the creditor/claimant to complete. It requires various pieces of information not required under the current regime. For example it is necessary that the claimant provides information on what steps have been taken to resolve the dispute such as credit control, meetings, discussion etc. There is also an option to include a list of witnesses (& their roles in the case) that the claimant wishes to refer to in support of the claim. This is not a mandatory requirement at this stage and there is an opportunity at a later date to submit any witness details should the claim become disputed. Other information required in the form is:

• key dates
• what the terms of any agreement were
• whether any services were provided
• whether the agreement relied upon is a consumer credit agreement
• why the claim should be successful (essentially the legal basis of the claim)
• which documents would be relied upon if the court orders a full hearing

It is worth noting that under the new Simple Procedure Rules from early 2017 you will be able to submit the claim form and track the case on an online portal.