Use the Small Claims Court for Debt Recovery

If you are owed a sum of money that the person refuses to pay, you can take your claim to the small claims court. The County Court usually deals with this type of financial claim. The small claims court isn't a special court, but just one of the functions of the County Court and is often referred to as the Small Claims Track as this is the most common form of small claims that are bought against defendants.

In most cases you can use the online system to make and track your claim as it progresses through the court system. Note that you will be expected to show that you have attempted to settle your claim in other ways before coming to the courts for help.

One of the best ways of trying to settle your dispute is via the National Mediation Helpline. You can call them on: 0845 603 0809. They also have a website at: www.adrnow.org.uk. It's also a good idea to read leaflet EX301: Making a claim? Some questions to ask yourself before you begin a formal small claims proceeding.

The type of small claims court you use will depend on the amount of money you are claiming. Your options are:

• Small Claims Track for claims under £5,000
• Fast Track for claims between £5,000 and £15,000
• Multi Track for claims over £15,000

For general claims the Small Claims Track is used. Note that the amount of your claim should be no more than £2,000 in Northern Ireland and under £3,000 in Scotland.

How to Make a Claim

If after all your attempts to recover the money you are owed you still cannot get a satisfactory conclusion to your claim, you can start a small claims court proceeding.

You can obtain a claim form from most County Courts, or you can download the form from the HMRC website: www.hmcourts-service.gov.uk. Once you have completed the form take two copies (three in Northern Ireland) it to your nearest County Court. They will assess the claim and serve the defendant with the claim via post.

The defendant will be sent a response pack that contains information and the forms the defendant will need to respond to your claim. If the pack is returned, the court will issue form N216 (notice of returned document). You can then decide whether to continue your claim.

When the defendant receives your claim form they have a number of options:

• They can ignore your claim. If this happens, leaflet EX304 will give you advice on what to do next.
• They can admit to your claim. If this happens, leaflet EX309 will tell you how you can proceed to recover the money you are owed.
• They can dispute or defend all or a part of your claim. If this happens, leaflet EX306 will tell you what can happen next with your claim.

Money Claim Online

If you are claiming a fixed amount of money instead of using the small claims court, you can usually get a faster result with Money Claim Online. The service is completely Internet based and involves you completing a claim form that is then processed and served to the defendant. You can read more information about this service and begin your claim on the HMCS website: www.hmcourts-service.gov.uk.

Generally, you can use this service if:

• You are making a claim against no more than two people.
• The amount you are claiming is fixed, but less than £100,000.
• You live within England and Wales.
• The person you are suing lives within England and Wales.
• You have a valid credit or debit card.
• You are over 18 years of age.
• You are not defined as a patient under the 1983 Mental Health Act.
• You are a legally assisted person as defined within the 1988 Legal Aid Act.

If want to begin your claim you can choose whether to begin your claim as a claimant or defendant by visiting the HMCS website: www.moneyclaim.gov.uk.

Fees and Costs

The fee that you will have to pay for your small claim to be processed by the courts (or the Money Claim Online service) will depend on how much the claim is for and if you are claiming any benefits. You will generally have to pay court fees unless you are claiming:

• Income Support
• State Pension Guaranteed Credit
• Income-based Jobseeker's Allowance
• Working Tax Credit with no Child Tax Credit

Your gross annual income will also be taken into consideration. You can read more detailed information about small claims court fees in leaflet EX160A that you can download from the HMRC website.