Money claims process under Part 7 Civil Procedure Rules
The rules a claimant must follow when making a County Court money claim for a debt under Part 7 Civil Procedure Rules.
The part 7 CPR claims process
Part 7 Civil Procedure Rules sets out the process for court claims for money only.
A claimant must follow the correct steps before court action and issue a claim form and particulars of claim correctly.
The defendant can decide whether they want to:
admit the claim
admit part of the claim, and defend part
defend the claim
If the defendant does not respond to the claim, the claimant can apply for default judgment.
Claimant steps before court action
Where the claimant is a business (including landlords), the steps they must take before they can issue a money claim depend on the type of debt they want to enforce.
Pre-action protocol for debt claims
The pre-action protocol for debt claims is part of the Civil Procedure Rules. It applies to any business claiming payment of a debt from an individual. Businesses include public bodies and sole traders.[1]
The protocol requires the claimant to send a letter of claim to the defendant before starting court proceedings. The letter of claim must state:[2]
the amount of the debt
whether interest or other charges are accruing
whether the debt is an oral or written agreement
details of how the debt can be paid
If the defendant has offered to make regular payments, the claimant must explain why they are not acceptable.
The claimant must send a statement of account with the letter, showing what interest and charges have been added. They must enclose an information sheet and reply form.[3]
The court expects the parties involved in the case to exchange information, try to settle issues without court action, and avoid running up extra costs.
Consumer Credit Act debts
Most consumer credit debts like loans, credit cards and hire purchase agreements are regulated by the Consumer Credit Act 1974. This legislation requires a claimant to issue certain notices to the defendant before they can take court action for arrears. The claimant must have sent the defendant:
Fixed sum credit means the defendant borrowed a set amount at the outset of the agreement. It does not include agreements where the balance is variable, for example a credit card agreement with a credit limit.
How the claim is issued
The claimant must complete Form N1 to make a County Court money claim.
The claimant can use the Money Claims Online (MCOL) service if the claim is:
for a fixed amount of money less than £100,000
against no more than two defendants
served to a defendant with an address in England or Wales
For all other claims up to a value of £100,000, the form must be posted to the Civil National Business Centre.
The claimant can use a separate Money Claims Service for claims up to £100,000.
Service of the claim on the defendant
The County Court sends the claim form to the defendant. The claim form is issued on the date entered on the form by the court.[7]
The particulars of claim can be sent at the same time as the claim form, or within 14 days of the date of service of the claim. [8] The forms for defending the claim, admitting the claim, and acknowledging service of the claim must also be sent by this date.
Address for service of the claim
The County Court normally serves the claim on the defendant by first class post.[9] The defendant's address is supplied by the claimant when they submit their claim form.[10]
Defendant has provided an address for service
The claim form can be served at an address where defendant resides, and has given for the purpose of being served with the claim.[11] For a claim against a landlord, the claim can be served at the address they must provide at the start of the tenancy.[12]
Defendant has not provided an address for service
The claim form must be served at the usual or last known address of the defendant. If the claimant has reason to believe the defendant no longer resides at their last known address, they must take reasonable steps to find out where they currently live.[13]
The claimant can apply to court for an order to allow service by an alternative method or at an alternative place, if they cannot locate the defendant.[14]
Date of service
The claim form is deemed to be served on the second business day after delivery.[15]
The court can authorise a different method or alternative place for service. The court can also dispense with service in exceptional circumstances.
For claims issued in the Civil National Business Centre, the claim is deemed to be served on the fifth day after the claim was issued. This does not have to be a business day.
Claim form and particulars of claim
The claim form must contain information about the reason for the claim, and the order the claimant wants the court to make.[16]
The claim form must give the value of the claim.[17] For claims based on a contract, the amount is normally fixed. For some other types of claim such as compensation, the claimant must state whether the amount they expect to recover is:[18]
less than £10,000
more than £10,000 but not more than £25,000
more than £25,000
The claimant must state on the claim form if they cannot say how much they expect to recover.
Claiming interest on the debt
The claim form must state whether the claimant is claiming interest on the debt, and specify whether it is under:[19]
the terms of a contract
legislation
some other basis
The claim form must state the percentage rate of the interest, the date from which it is claimed, and the date to which it is calculated. The end date must be no later than the date the claim is issued.
The claimant could include a claim for statutory interest up to the date of judgment.[20] This is only allowed if no other type of interest is running on the debt.[21]
The court can exercise discretion to:
allow the claim for interest
allow part of the interest claimed
refuse the claim for interest
Statement of truth
The claim form and particulars of claim must include a statement of truth.[22] The statement of truth confirms the claimant understands that proceedings for contempt of court can be brought against them if they make a false statement without an honest belief in its facts.
Defendant's response to the claim
The defendant has 14 days to respond to a money claim. If the particulars of claim are served after the claim form, the time limit runs from the date of service of the particulars.[23]
The defendant's response pack includes forms for:
admitting the claim
defending the claim
asking for more time to file a defence
Admit the claim
To admit the claim, the defendant must complete form N9A and send it to the claimant within 14 days of the date of service of the claim. The form contains boxes for the defendant to fill in with their income and expenditure, and make an offer to pay the judgment debt in full by a specified date, or by instalments.
The claimant can either accept the offer, or refuse it. If they refuse the offer, the County Court sets the rate of payment.
The defendant must complete the admission if they admit part of the claim, indicating on the firm how much they admit to.
The defendant must use form N9C to admit the claim if it is for an unspecified amount of money.
Read more about how to admit a money claim.
Defend the claim
The defendant must complete form N9B and file it with the court within 14 days of the date of service of the claim. The defence is filed when it is received by the court.
The form contains some space to enter the details of the defence. If the defence relies on detailed legal arguments, the defendant should continue on a separate sheet.
Read more about how to defend a money claim.
Get more time to file the defence
The defendant can get an additional 14 days to file their defence by completing and returning the acknowledgment of service form.[24]
The defendant must file the acknowledgment of service at court on the relevant form and include their full name and address for service.[25]
The acknowledgment can only be amended or withdrawn with the permission of the court.[26] The defendant must make an application for permission to amend or withdraw the acknowledgment under Part 23 Civil Procedure Rules.
Claimant's application for a default judgement
The claimant can apply for a default judgment once the time to respond to the claim has passed.
Part 12 of the Civil Procedure Rules sets out when a claimant can apply to court for a default judgment.
When does the court grant default judgment
The court can grant a default judgment when they receive the claimant's application on form N227.
The court cannot grant default judgment if there is another matter to be decided in the case. For example the defendant has:[27]
paid the claim
filed a defence
sent an admission to the claimant
applied for the claim to be struck out
applied for a summary judgment against the claimant
The court cannot grant default judgment if an acknowledgment of service has been filed unless the deadline to file a defence has passed.
The defendant files a late defence
The court can only grant a claimant's application for default judgment if the defendant has not filed a defence or acknowledgment of service, and the deadline for doing so has expired.
The defendant can still file a defence after the deadline has expired, as long as the claimant has not already applied for default judgment. The court cannot grant an application for default judgment that is received after the defence form is filed.
Before they file a late defence, the defendant can contact the court to ask whether the claimant has already made an application for default judgment. If the application for default judgment has already been made, the defendant can apply to set aside the judgment.
Read more about asking to set aside a default judgment.
Defendant's options after judgment
The claimant can apply to court to enforce the money judgment if:
it is payable forthwith (immediately)
the date for payment of the judgment debt has passed
the defendant has not paid instalments under an instalment order
To prevent enforcement, the defendant could apply to set aside or vary the money judgment. If a judge has already made a decision about the case, the defendant could lodge an appeal.
Apply to set aside the judgment
The defendant could make an application to court to set aside a default judgment, or in limited cases, to set aside an order made at a trial. A possession order is an example of an order made at a trial.
The defendant should make sure they have grounds to set aside before they make the application and pay the appropriate fee.
Apply to vary the judgment
The defendant could apply to vary the judgment to an instalment order, or to vary the payment amount. The process for making an application to vary the judgment depends on whether instalments have already been set by the court, and if so, whether they were set by a judge or court staff.
Appeal a decision by a judge
The defendant could appeal the decision within 21 days of the date of the decision to be appealed. The defendant should only lodge an appeal if they are sure their case has merits. They could be ordered to pay the claimant's costs if the appeal is not successful.
Last updated: 17 August 2023