3 October 2005
The government has today introduced new measures to help people in debt difficulties avoid ending up in court.
Pre-Action Notices (PAN) are to be launched to help many people resolve debt difficulties without the stress and added cost of going to court.
The national trial launched today by the Department for Constitutional Affairs (DCA) will test how well the PAN works.
PANs will be issued by the court as a last action by the creditor before issuing a claim and will outline details of the debt allegedly owed, debtor's options to resolve the problems immediately, sources of independent debt advice, and that increased liabilities may be incurred if court action is taken.
Baroness Cathy Ashton, Under-Secretary of State at the DCA said: "The PAN will ensure that debtors receive information on the options available to them to avoid court action. They will also be told where to seek advice and assistance.
"It will mean that debt problems can be resolved earlier without the need to go to court. This will save both the debtor and creditor the cost and stress of unnecessary or inappropriate court action."
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