Online route to your money

Virtual court

It is possible to use an online version of the county court to sue, simply click on http://www.moneyclaim.gov.uk and follow the instructions which are written in laymen’s language. You’ll need a valid credit card in order to pay the fees involved in making your claim (use a company card to avoid personal tax implications). You’ll also need the full address and postcode of the debtor. It’s quick and easy and it has the attraction that you can fit the process into your daily schedule when you like, as opposed to having to fit it in around your local court’s opening hours, which are usually 9am to 4.30pm.

Trap

Don’t be blinded by the simplicity of the process. Follow exactly the same thought process that you’d go through if you were taking someone to court using the more traditional method. Always ask yourself whether you’ve a decent case and whether the debtor has the means to pay the debt, if you’re successful.

The limitations

As with any system, nothing’s perfect and this is true of money claims online too. Firstly, you can only use this method if your claim is for a set amount (known as a liquidated claim). If you have an outstanding invoice for, e.g. £3,500, no problem. But if the other party had broken its agreement with you, then you’d be looking to recover damages for the loss your company has suffered. As this could be a variable amount, you can’t use money claims online. Secondly, suing online is only suitable if your claim is very straightforward, e.g. a simple breach of contract for non-payment where the facts are uncomplicated and not likely to be disputed. Thirdly, even if you get a judgment, the only way to enforce it online is by using the bailiffs. Given the resources of the debtor, this may not be the most appropriate method.

Tip 1. Before you start the ball rolling ask yourself whether you can set out your entire claim clearly and concisely in 24 lines. That’s the limit you’re given for an online claim. The idea is to tell the story so that the judge knows what your case is all about.

Tip 2. To see if it’s possible, write out your claim on a piece of paper beforehand. If there are too many unknowns, gaps in the story or facts that are likely to be disputed, then suing online isn’t for you.

Yes, your honour

One of the main reasons for suing online is to avoid the hassle of having to attend court and appear before a judge. However, this is exactly what will happen if the other side files a defence (even if it’s rubbish) - the case will be automatically allocated to either your nearest court or the defendant’s, if an individual. Then all the benefits will rapidly disappear.

Stats on your side. Luckily, official stats show that 80% of claims issued using money claims online go undefended. So there’s only a 20% chance that you’ll actually have to attend court. We reckon that in the majority of simple cases where the facts aren’t in dispute, this is a chance worth taking.