The objective at PreAction is always to find a commercial resolution wherever possible.

But what happens when the other party chooses not to engage?

It’s an important question because there can sometimes be a misconception that failing to respond means the matter will simply disappear.

It doesn’t.

PreAction Is an Opportunity to Resolve

Pre-litigation provides an opportunity for parties to resolve a dispute before it progresses into potentially more expensive and time-consuming action.

During this stage, the focus is on understanding the claim, reviewing the evidence and identifying whether a commercial resolution can be reached.

For many cases, that’s exactly what happens.

But not every dispute can be resolved.

If a party chooses not to engage or an agreement cannot be reached, the claim owner then decides what happens next.

That could include pursuing legal action, assigning the debt or working with another recovery or enforcement provider.

PreAction works with organisations including Athena and SGS, but the decision about how an unresolved claim progresses remains with the claim owner.

The Cost of Escalation

This is where early engagement can become particularly important.

One recent claim involved an original liability of approximately £10,000.

The opportunity to resolve the matter at the PreAction stage wasn’t taken and the case subsequently progressed.

By the time the matter concluded, the amount payable had risen to approximately £14,000.

That’s a 40% increase on the original liability, before considering the additional time, resource and disruption involved.

And this isn’t an isolated issue.

PreAction has seen approximately 500 claims representing around £4 million of debt progress beyond the pre-litigation stage after customers chose not to resolve matters earlier.

Engagement Doesn’t Mean Agreement

There’s an important distinction here.

Responding to PreAction doesn’t mean accepting a claim without question.

It means engaging with the process.

If there’s a genuine dispute, it can be discussed. Evidence can be considered and both parties have an opportunity to understand the other’s position.

Doing nothing removes that opportunity.

Resolve It While You Can

PreAction’s role is not to predetermine what happens next.

Our objective is to provide an opportunity to reach a commercial resolution before further action becomes necessary.

Because once a dispute progresses, the decisions, costs and consequences can look very different.

Received correspondence from PreAction? Engage with our team. A conversation today could prevent considerably more time and cost tomorrow.