Pre-Action Letter vs Money Claim Online (MCOL)

By ClaimKit UK Editorial Team · Updated February 2026

A formal notice (often called an LBA) is the required pre-action step. Money Claim Online (MCOL) is the court filing process. Most disputes start with the notice and only progress to MCOL if the other party does not respond.

Quick comparison

Topic	Formal Notice (LBA) vs Money Claim Online
Purpose	Formal Notice (LBA): Request resolution before court action. Money Claim Online: File a claim with the court.
Timing	Formal Notice (LBA): Before issuing a claim. Money Claim Online: After pre-action steps are complete.
Cost	Formal Notice (LBA): Low cost to prepare and send. Money Claim Online: Court fees apply on submission.
Outcome	Formal Notice (LBA): Settlement or no response. Money Claim Online: Court process begins.

Best for Formal Notice (LBA)

First step when a dispute is unresolved
Cases where a clear written demand could settle quickly
Disputes where you want to show compliance with pre-action conduct

Best for Money Claim Online

When the other party ignores or rejects your notice
You are ready to proceed with a formal claim
You have evidence organised and ready to submit

What to consider

Think about the value of your claim, the clarity of your evidence, and how quickly you need a resolution. For straightforward disputes, a clear Letter Before Action often resolves the issue without going to court.

If the dispute is complex, involves multiple parties, or has a high value, professional advice may help you manage risk and prepare a stronger case.

When to move forward

Use these signals to decide if you should proceed to the next step or keep negotiating.

You have a clear timeline and evidence of what was agreed
You have already tried to resolve the issue informally
The other party has missed a reasonable deadline
The value of the claim makes it worth pursuing

Keep copies of all correspondence, invoices, and receipts. If the dispute escalates, this record will support your position.

If you are unsure, start with the option that preserves your ability to escalate later. A well-documented letter can support a future claim and often prompts a faster response.

FAQs

Do I have to send a letter before using MCOL?

In most cases you should send a pre-action letter (LBA) first. Courts expect you to attempt resolution before issuing a claim.

How long should I wait after sending the letter?

A 14 day deadline is common. If there is no response, you can move forward with a claim.

Can I send the letter and file MCOL immediately?

It is better to wait for the response deadline unless there is an urgent reason to file earlier.

Related comparisons

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