Money Dispute

Money Disputes in the UK – A Practical Guide to Getting Paid

Money disputes arise when individuals or businesses disagree over a financial obligation—such as unpaid invoices, loans, deposits, faulty goods or services, or compensation under a contract. In England & Wales, most straightforward claims can be resolved through negotiation, mediation, or the County Court’s small claims track for lower‑value matters (generally up to £10,000), with special limits for personal injury and housing disrepair claims. This track is designed to be accessible, with simplified procedures and limited recoverable costs, so many claimants proceed without solicitors. The small claims track threshold and exceptions are set out in Civil Procedure Rules (CPR), which confirm the normal allocation up to £10,000 and lower limits in specific categories (e.g., £1,000 for certain housing disrepair elements and personal injury damages thresholds).

Step‑by‑Step: How to Resolve a Money Dispute

1) Try negotiation and mediation first.
Before court action, the system expects parties to exchange information, explore settlement, and consider Alternative Dispute Resolution (ADR). For money claims, you’ll usually send a Letter Before Claim/Action, then consider the free or low‑cost mediation offered by HMCTS (and other mediation routes) to save time and fees.

2) Follow the relevant pre‑action protocol (for debt claims).
Where a business claims payment from an individual/sole trader, the Pre‑Action Protocol for Debt Claims applies: send a detailed Letter of Claim, include prescribed information, reply forms, and give the debtor adequate time to respond. Courts expect compliance and may sanction parties who ignore the protocol. The protocol’s aims and required contents (amount, interest, copies of agreements, payment options, advice sheet, reply form) are set out in official guidance and Ministry of Justice documents.

3) Issue a County Court claim if negotiations fail.
You can file online via Money Claim Online (MCOL) (fixed‑amount claims, basic party limits) or by post using the prescribed form. The issue fee depends on the claim value—for example, £35 up to £300; £455 for £5,000–£10,000; 5% for £10,000.01, £200,000 subject to periodic updates and index‑linked changes. Help with fees is available for eligible claimants. HMCTS outlines MCOL suitability and pre‑action conduct requirements, and confirms the defendant’s response deadlines (14 days, extendable to 28 with an Acknowledgement of Service).

4) Allocation to the small claims track and case management.
If defended, the court will provisionally allocate your case and require a Directions Questionnaire. The judge decides the appropriate track based on value and complexity; small claims hearings are informal, and costs are restricted under the rules.

5) Hearing and judgment.
At the hearing, you present documents (contracts, invoices, photos, emails), witness statements, and any authorised expert evidence. If you succeed, the court issues a judgment specifying how much is owed and when payment is due. HMCTS explains typical routes from issue through hearing and outcome for small claims.

6) Enforcement if the debtor doesn’t pay.
If payment isn’t made, you can enforce the judgment: instruct bailiffs via a warrant/writ of control, apply for an attachment of earnings, secure the debt by charging order against property, or freeze funds via a third‑party debt order. HMCTS and Shelter set out these mechanisms and forms, plus practical safeguards and timelines (e.g., giving 7 days’ notice before bailiff attendance).

Costs, Fees, and Timeframes

Court issue fees are banded by claim value and can be reclaimed if you win; hearing and enforcement fees may also apply. The Government’s fee tables (EX50A and GOV.UK) show current amounts and confirm percentage‑based fees for higher‑value claims, with periodic CPI‑linked increases implemented by statutory instruments (e.g., early April 2025 changes). Updates covering broad fee rises across jurisdictions were announced and discussed by law firms monitoring the changes, with possession/injunction and application fees examples, signalling the importance of checking the latest HMCTS fee list before filing.

FAQs – Money Disputes in England & Wales

What counts as a “small claim”?
A lower‑value, relatively straightforward civil claim normally up to £10,000, subject to rules, exceptions and special limits for personal injury and housing disrepair components.

Do I need a solicitor?
Not necessarily. The small claims track is designed for litigants‑in‑person, with simplified rules and limited costs recovery. Many claimants proceed using MCOL and GOV.UK guidance. However, many also lose their cases because of a lack of legal knowledge. Therefore, we always recommend involving a lawyer in such matters.

How long will it take?
Timelines vary by court capacity and case complexity. After a defence, the case is allocated and listed; small claims aim for informal, efficient disposal under CPR Part 27, but allow for directions, mediation, and hearings where needed.

What if the debtor ignores the claim?
You may request a default judgment if the defendant fails to respond within the set time; HMCTS explains the response windows and the process to enter judgment online or by post.

Can I recover interest and costs?
You can claim statutory interest and certain fixed/capped costs (e.g., issue fees) on the small claims track. The rules limit recoverable costs and HMCTS fee guidance covers reclaiming fees upon success.

How do I enforce if they still don’t pay?
Apply for enforcement: warrant/writ of control, attachment of earnings, charging order, or third‑party debt order. HMCTS provides the forms and steps; Shelter’s legal pages explain notices, standards, and bankruptcy thresholds for escalated action.