(The writer is a debt collector – not a solicitor)
WITHOUT PREJUDICE are two of the most misused and misunderstood words in debt recovery world.
Many actually believe that placing these words on all correspondence, it can’t be used against you in court.
It affords no such protection!
It can, and more than likely, will be used against you in court.
So when and why do you use it?
On sending an offer to your debtor to resolve the debt you need to include “Without Prejudice”.
Let’s say your debtor ignored your 50% offer to settle within 7 days. Should the matter
end up in court your debtor may say “But you Honour, he agreed to reduce the bill by 50%!”
It’s then up to you to hold up your correspondence in evidence of the “Without Prejudice” offer.
Your court action will, as a result, not be prejudiced by your offer as it was not taken up within your time constraint.
Is that make it plain and simple?
Richard Adams, Licensed Debt Collector DCL5286
First International Debt Collection