How to Recover Money You’re Owed

Setfords Law Published: 12 August 2026, Last reviewed: 12 August 2026, Read time: 10 minutes

Money owed to you doesn’t come back on its own, and the right way to chase it depends on how it went missing in the first place. Someone who simply hasn’t paid an invoice needs a different approach to someone who’s fallen victim to a scam transaction. This guide covers both: the formal route for recovering an unpaid debt, and what your options are if you’ve lost money to fraud.

Key takeaways

• Before going to court, you generally need to send a formal letter before action giving the debtor a chance to pay.
• Claims up to £10,000 usually go through the small claims track, which is designed to be accessible without a solicitor.
• Winning a claim doesn’t guarantee payment. You may need separate enforcement action if the debtor still doesn’t pay.
• If you’ve paid by card, section 75 protection or chargeback may get your money back faster than pursuing the seller directly.
• Bank transfer fraud has its own reimbursement scheme, separate from the usual small claims process.

Recovering money you’re owed usually means one of two things: chasing someone who owes you a genuine debt, or trying to get money back after a fraudulent or unauthorised transaction. The legal routes for each are quite different, and picking the right one from the start saves time.

Recovering an unpaid debt

If someone owes you money and hasn’t paid, whether that’s an unpaid invoice, a personal loan, or money owed under an agreement, there’s a formal process for pursuing it through the courts if informal requests don’t work.

1. Send a letter before action. Before issuing a court claim, you’re generally expected to send a formal letter setting out what’s owed, why, and giving the debtor a reasonable period, often 14 to 30 days, to pay or respond. Where a business, including a sole trader, is claiming against an individual, this needs to follow the Pre-Action Protocol for Debt Claims specifically. Individual-to-individual debt claims instead fall under the broader Practice Direction on Pre-Action Conduct and Protocols.

1. Issue a county court claim if there’s no response. If the letter doesn’t resolve things, you can issue a claim through the county court, often using the online Money Claim Online service for straightforward debts.

1. The claim proceeds to judgment. If the debtor doesn’t respond, you can apply for default judgment. If they dispute the debt, the claim proceeds through the usual court process, potentially to a hearing.
   

1. Enforce the judgment if the debtor still doesn’t pay. Winning doesn’t automatically get you paid. If the debtor doesn’t pay voluntarily, you may need separate enforcement action, such as instructing enforcement agents, applying for a charging order, or seeking a third party debt order against their bank account.
   

What is the small claims track? It’s the court process used for most claims up to £10,000, designed to be simpler and more accessible without needing a solicitor, and with more limited costs recovery if you win. Larger or more complex claims may go through the fast track or multi-track instead.

Key figures

£10,000 small claims track limit · £100 to £30,000 section 75 credit card protection range · Pre-Action Protocol for Debt Claims (individual debtors) · Late Payment of Commercial Debts (Interest) Act 1998 (business-to-business debts)

The Pre-Action Protocol for Debt Claims sets out the steps a business creditor must generally follow before suing an individual for an unpaid debt, including sending a letter before action with specific prescribed information. The Late Payment of Commercial Debts (Interest) Act 1998 allows businesses owed money by other businesses to claim statutory interest and a fixed compensation sum on top of the debt itself, without needing to agree this in advance. Section 75 of the Consumer Credit Act 1974 makes your credit card provider equally liable alongside the seller for purchases between £100 and £30,000, where something’s gone wrong with the goods or service.

(These are the general frameworks, not guaranteed outcomes for any individual case. Specific fees, reimbursement limits, and thresholds should be checked against the current rules before relying on them, and confirmed with your solicitor.)

Recovering money lost to a fraudulent transaction

If you’ve lost money to a scam or fraudulent transaction, the right route depends heavily on how you paid.

• Bank transfer fraud. If you were tricked into authorising a bank transfer yourself, often called authorised push payment fraud, the Payment Systems Regulator’s mandatory reimbursement scheme requires participating banks to reimburse eligible victims, generally within 5 business days, up to a cap of £85,000 per claim. Banks may apply an excess of up to £100. Report this to your bank as soon as possible, since delay can affect the outcome.
• Card payments. If you paid by credit card for something between £100 and £30,000 and there’s a problem with the goods or service, including in some fraud scenarios, section 75 of the Consumer Credit Act 1974 may make your card provider equally liable. For debit cards, or credit card payments outside that range, chargeback is a separate scheme run by the card networks that can reverse a payment in qualifying circumstances, though it’s not a legal right in the same way section 75 is.
• Unauthorised transactions. If a payment was made without your authorisation at all, for example your card details were used without your knowledge, your bank has separate obligations to refund you, generally without you needing to prove fraud on the recipient’s part.

If your bank refuses to reimburse you and you believe it should have, you can escalate a complaint to the Financial Ombudsman Service once you’ve exhausted the bank’s own complaints process.

If the debtor still won’t pay after judgment

A county court judgment confirms the debt is owed, but it doesn’t collect the money for you. If the debtor doesn’t pay voluntarily, several enforcement options exist, and which one makes sense depends on what you know about the debtor’s circumstances.

• Enforcement agents (bailiffs). Can be instructed to seize and sell goods to recover the debt.
• A charging order. Secures the debt against any property the debtor owns, which can eventually lead to a forced sale in serious cases.
• A third party debt order. Freezes and can redirect funds held in the debtor’s bank account towards the debt.
• An attachment of earnings order. Requires deductions directly from the debtor’s wages, where they’re employed.

For larger debts owed by individuals, insolvency routes such as a statutory demand followed by a bankruptcy petition are sometimes used, though this is a serious step that can affect the debtor significantly and needs careful consideration.

What slows things down

Skipping the letter before action. Courts can penalise you on costs if you issue a claim without following the correct pre-action process first.

Reporting fraud late. Both bank reimbursement schemes and chargeback rights can be time-limited or affected by how quickly you report the issue.

Assuming judgment means payment. Many creditors are surprised that winning a claim is only the first step, and enforcement can take further time and its own process.

What helps

Keep a clear paper trail. Invoices, contracts, and correspondence all help if a debt ends up being disputed or going to court.

Act quickly if you’ve been a victim of fraud. Reporting to your bank and, where relevant, the police as soon as possible puts you in the strongest position.

Check what you actually know about the debtor before enforcing. Choosing the right enforcement method, for example knowing where they bank or whether they own property, makes enforcement far more likely to succeed.

What happens next depends on how the money went missing, how much is involved, and what you already know about the person or organisation who owes it. Speak to our debt recovery team for a confidential, no-obligation conversation about your options.

Common mistakes

1. Going straight to court without a letter before action. This can affect your costs position even if you go on to win.

1. Assuming chargeback and section 75 are the same thing. Section 75 is a statutory right for qualifying credit card purchases. Chargeback is a card scheme process with different rules and no legal guarantee of success.

1. Waiting too long to report fraud. Delay can affect your rights under both bank reimbursement schemes and card scheme rules.

1. Not planning for enforcement. Getting a judgment is only useful if you can actually collect on it, so it’s worth thinking about enforcement options before, not after, issuing a claim.

When to speak to a solicitor

Not every unpaid debt needs a solicitor, but professional help tends to pay for itself once a matter becomes contested or enforcement is needed. Speak to a solicitor if:

• The debtor disputes the debt or has raised a counterclaim.
• You’ve won a judgment but the debtor still hasn’t paid.
• You’re considering insolvency action against an individual or business debtor.
• Your bank has refused to reimburse you for a fraudulent transaction.
• A significant sum is involved and you want the process handled correctly from the start.

What to bring to your first conversation

Having the right information ready makes your first conversation with a solicitor far more useful. Gather together:

• Invoices, contracts, or agreements relating to the debt.
• Any correspondence with the debtor, including payment promises or disputes raised.
• Bank statements or transaction records, if the matter involves fraud.
• Any existing court judgment or order, if you already have one.

FAQs

Can I charge interest on a debt someone owes me?

If the debt is owed by a business to another business, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim statutory interest, currently set at 8% plus the Bank of England base rate, along with a fixed compensation sum of between £40 and £100 depending on the size of the debt, even without a specific agreement. For consumer debts, this generally needs to be agreed in the original contract.

What if I don’t know where the debtor lives or works?

You can still issue a claim, but tracing the debtor may become necessary for effective service or enforcement. There are professional tracing services that can help establish a current address or employer.

Is chargeback guaranteed to get my money back?

No. Chargeback is a scheme run by card networks rather than a legal right, and the outcome depends on the specific circumstances and the evidence available. It’s usually worth trying, but it isn’t guaranteed.

Can I recover my legal costs as well as the debt?

It depends on the value of the claim and which court track it falls into. Costs recovery is more limited on the small claims track than on larger claims, so it’s worth understanding this before deciding how to proceed.

About the author:

This article is general information about recovering money owed in England and Wales and is not legal advice. The law can change and every situation is different, so please speak to a qualified solicitor about your circumstances.