The LBA (Letter Before Action)

We always recommend that you issue your student with an LBA prior to any court action.

The LBA (Letter Before Action) clearly details the amount of monies owed by the student and gives official warning that if payment is not received by the date shown (usually within 7 days), court proceedings may commence.

The LBA also makes it clear that any proceedings taken will include a claim for court fees and costs (these are our costs), as well as interest if applicable. Unless requested otherwise, LRC will always look to claim interest on your behalf.

Whilst you may prefer to create your own LBA’s, our experience has shown that the threat of court action from an unrelated third party is usually enough to secure payment … or at least get the student talking!

As an added benefit, all correspondence between the student and ourselves is kept in electronic format and can be viewed at any time via our online Debt Recovery System. Should the student ever dispute receipt of the LBA, we can prove notice was sent and when.

Although you may wish to use your own LBA’s, or choose to proceed directly to Court action, for our own peace of mind we prefer to send a copy of our own LBA in the first place. 69% of all debt collected by LRC comes from the LBA, so you never know, it could resolve the situation a lot quicker than anticipated.