A demand letter formally notifies someone that you intend to take legal action unless they pay a debt or comply with an obligation. Most civil disputes require a demand letter (or pre-action letter) before proceedings can be issued. Courts expect parties to try to resolve disputes before litigating.

• Pre-action protocols: many require a formal letter before court action
• Debt claims: Debt Pre-Action Protocol requires 30-day response period
• Keep a copy and send by signed-for delivery
• A clear paper trail strengthens your position in any subsequent litigation
• Small Claims Court: can claim debts under £10,000 without a solicitor

Legal reference: CPR Pre-Action Protocols; Practice Direction — Pre-Action Conduct; Limitation Act 1980