Money claim online

Money Claim Online (MCOL) is an online service provided by the UK government, allowing individuals and businesses to make a claim for money they are owed. It's part of the UK’s Civil Procedure Rules (CPR) and is managed by Her Majesty's Courts and Tribunals Service (HMCTS). This guide covers the following :

 

1. Eligibility

 

2. Filing a Claim

 

3. Issuing the Claim

 

4. Defendant's Response

 

5. Enforcing the Judgment

 

6. What Can You Claim?

 

7. Advantages of MCOL

 

8. Disadvantages of MCOL
 

1. Eligibility

In the UK, MCOL (Money Claims Online) is a service provided by HMCTS (Her Majesty's Courts and Tribunals Service) that allows individuals and businesses to make small claims in court online. It's part of the process for pursuing claims in the small claims court.

Key Points about MCOL (Money Claims Online):

1. Claim Value:
    

   • MCOL is used for claims that are valued at £10,000 or less for money claims (or up to £1,000 for housing disrepair cases).
      

2. Eligibility:
    

   • You can use MCOL if your claim is straightforward, i.e., a financial dispute, and you want to make it without attending court physically. It's available for individuals, businesses, or organisations to claim money from someone who owes it.
      

3. How to Use MCOL:
    

   • You need to create an account on the MCOL portal.
      

   • Provide details of the claim: the amount you are claiming, the defendant (the person or business you're claiming against), and the reason for the claim.
      

   • Pay the court fee (which depends on the value of the claim).
      

   • If the defendant does not respond or disputes the claim, you may need to take further action, such as attending a hearing.
      

4. Steps for Making a Claim:
    

   • Start the Claim: Go to the MCOL website and start your claim.

   • Fill in Claim Details: Enter all the required details about the claim (the defendant, amount, and reason).
      

   • Pay the Court Fee: Fees can vary based on the amount you're claiming.
      

   • Court Reviews: After submission, the court will review your claim.

   • Defendant's Response: The defendant will have 14 days to respond, either by agreeing to pay or disputing the claim.
      

   • Judgment: If the defendant doesn't respond or the case is in your favour, the court can issue a judgment.
      

5. Costs:
   
   The court fee varies depending on the amount you are claiming. For example:

• Claims up to£300: £35

• Claims between £300 and £500: £50

• Claims between £500 and £1,000: £70

• Claims between £1,000 and £1,500: £80

• Claims between £1,500.01 to £3,000 £115

• Claims between £3,000.01 to £5,000 £205

• Claims between £5,000.01 to £10,000 £455

• Claims between £10,000.01 to £20,000 5% of the claim

• Claims of more than £200,000 £10,000
   

1. Enforcing a Judgment:
    

   • If you win your claim and the defendant doesn't pay, you may need to take steps to enforce the judgment, such as using bailiffs or obtaining a charging order against their property.
      

2. Limitations:
    

   • MCOL is only for money claims and cannot be used for things like personal injury, defamation, or disputes about property.
      

2. Filing a Claim

Filing a small claim in the UK is a process where you can seek compensation or resolve a legal dispute without needing a solicitor. It’s typically for claims under £10,000. Here’s a step-by-step guide on how to file a small claim in the UK:

1. Check if the Claim is Eligible for Small Claims Court

• Value of the claim: Claims must be for £10,000 or less (unless it's a housing-related dispute, where the maximum limit is £1,000).
   

• Nature of the claim: Small claims are typically for financial disputes, contractual disagreements, or unpaid debts. It’s not suitable for more complex cases like personal injury or defamation (these may need a different court process).

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2. Attempt to Resolve the Dispute (Pre-action Protocol)

Before taking a claim to court, you must try to resolve the issue with the other party. This could include:

• Sending a letter of claim: This is a formal letter explaining your case and asking for payment or resolution. Give the other party time (usually 14 days) to respond.
   

• Alternative Dispute Resolution (ADR): If you can, try mediation or negotiation before proceeding to court.
   

3. Start the Claim Online or on Paper

You can file a claim either online or on paper:

Online (Preferred for Speed):

• Visit the money Claim Online (MCOL) website: This is the official online service where you can start a claim for up to £10,000.
   

• Register for an account and follow the instructions to fill out your claim details. You will need to provide:
   

  • Your details and the defendant’s details (the person or company you're claiming against).
     

  • The amount of money you’re claiming and a brief explanation of the case.
     

  • Any evidence that supports your claim (invoices, contracts, emails, etc.).

Paper Claim:

• If you prefer, you can complete a Form N1 (available from the UK government website or at your local county court) and send it to the court. You’ll also need to pay a court fee, which varies based on the value of the claim.

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4. Pay the Court Fee

You’ll need to pay a fee when you file a small claim. The amount depends on how much you’re claiming:

• Claims up to£300: £35

• Claims between £300 and £500: £50

• Claims between £500 and £1,000: £70

• Claims between £1,000 and £1,500: £80

• Claims between £1,500.01 to £3,000 £115

• Claims between £3,000.01 to £5,000 £205

• Claims between £5,000.01 to £10,000 £455

• Claims between £10,000.01 to £20,000 5% of the claim

Claims of more than £200,000 £10,000

You can usually pay by credit/debit card online or by cheque if you're filing a paper claim.
 

5. Wait for a Response from the Defendant

Once your claim is issued, the defendant will have 14 days to respond:

• Admit the claim: The defendant may pay the full amount or offer a partial payment.
   

• Defend the claim: If the defendant disagrees, they may submit a defence. If this happens, you’ll receive a notice with details of a hearing date.

• Failure to respond: If the defendant doesn't respond, you can apply for a default judgment, and the court may order them to pay you.
   

6. Prepare for the Hearing

If the case goes to court:

• Gather evidence: This can include contracts, letters, receipts, emails, photos, etc.

• Prepare your statement: Be clear about your case, what you’re claiming, and why.

• Attend the hearing: Small claims court hearings are usually informal. The judge will listen to both sides, review the evidence, and give a decision.
   

7. Enforce the Judgment

If you win the case and the defendant doesn’t pay:

• You can take enforcement actions like wage garnishment, or seizing goods through an enforcement officer.

 

3. Issuing the Claim
Issuing a small claims court case in the UK is a relatively straightforward process, but it’s important to follow the steps carefully. Here’s a general guide on how to go about it:
 

1. Check Eligibility

• Amount: Small claims cases are for claims up to £10,000 (or up to £1,000 for personal injury or housing disrepair claims).

• Nature of the Claim: It could involve unpaid debts, damage to property, breach of contract, etc. The claim must be straightforward and not require complicated legal arguments.
   

2. Try to Resolve the Issue

Before you proceed with a small claims court case, it’s often encouraged to try to resolve the matter through negotiation, or with alternative dispute resolution (ADR), such as mediation. Courts expect you to have made an effort to settle the dispute before taking legal action.
 

• Write a Letter Before Action (LBA): This is a formal letter to the person or business you're claiming against, stating your case and demanding payment or action by a certain date (usually 14 days). If you don’t get a response, you can move forward with the claim.
   

3. Decide Whether to Go to Court

If your dispute isn’t resolved and you still wish to proceed, you’ll need to file your claim.
 

4. Issue the Claim

You can issue a small claims court case online or on paper:

• Online: The quickest and cheapest way is through the Money Claim Online (MCOL) system. It allows you to submit your claim and track the progress of your case. Visit Money Claim Online to start the process.

• Paper-based: Alternatively, you can complete a Claim Form (N1) and send it to the appropriate court. Forms are available from the court or online.
   

5. Pay the Court Fee

You will need to pay a fee to start your claim, which is based on the amount you’re claiming. Here’s a basic breakdown:

• Claims up to£300: £35

• Claims between £300 and £500: £50

• Claims between £500 and £1,000: £70

• Claims between £1,000 and £1,500: £80

• Claims between £1,500.01 to £3,000 £115

• Claims between £3,000.01 to £5,000 £205

• Claims between £5,000.01 to £10,000 £455

• Claims between £10,000.01 to £20,000 5% of the claim

Claims of more than £200,000 £10,000You may also be able to claim the court fee back if you win the case.
 

6. Wait for the Response

After you submit the claim, the defendant will be given a chance to respond. They can either:

• Admit the claim and pay.

• Deny the claim and offer a defence.

• Partially admit and pay part of the claim.

If they don’t respond within 14 days, you can request a default judgment in your favour.
 

7. Prepare for the Hearing (If Necessary)

If the case goes to court, you’ll have a hearing where you’ll need to explain your case and present evidence (e.g., receipts, contracts, photographs). The defendant will also have a chance to defend themselves.

• Prepare your case: Organize any relevant documents and evidence. Make sure you can clearly explain your position.
   

• Witnesses: If necessary, bring along any witnesses who can support your claim.
   

8. Attend the Hearing

The hearing is usually informal, and both parties will have the chance to present their side of the story. The judge will make a decision, usually at the end of the hearing, but it can sometimes take a little longer.

 

9. Enforce the Judgment

If you win your case and the defendant doesn’t pay, you may need to take steps to enforce the judgment. There are several options, such as:

• Warrant of execution (bailiffs seizing property).

• Attachment of earnings (deducting money directly from the defendant’s salary).

• Charging order (placing a charge on the defendant’s property).
   

The court will provide guidance on how to enforce the judgment if necessary.

Additional Tips:

• Keep a Record: Always keep copies of all documents, correspondence, and any evidence you present to the court.

• Court Hearing Preparation: If you’re not confident about presenting your case, you can ask for advice from a legal advisor or organization such as Citizens Advice.
   

4. Defendant's Response

In the context of a small claims court in the UK, a defendant's response typically refers to the formal reply to a claim made against them. If you’ve been served with a claim and you’re the defendant, you need to provide a response by filling out a Defence Form (N9 form) or the online equivalent through the Money Claim Online (MCOL) system.
 

Here’s a general overview of the steps and what should be included in the Defendant's Response:

1. Acknowledgement of Service (Optional)

• If you need more time to prepare your response, you can acknowledge receipt of the claim. This gives you an extra 14 days to file your full defence.

• You should submit this within 14 days of receiving the claim form.
   

2. Filing Your Defense

• If you wish to defend the claim, you need to file a formal defense within 14 days of acknowledging the claim (or within 28 days from receiving the claim form if you do not acknowledge it).

• You can do this by filling out the Defense Form (N9) or via the Money Claim Online system if the claim was made online.

• Your defence should clearly explain why you believe the claim is not valid. If you are denying the claim or part of it, state your reasons in detail. You might want to provide evidence to support your case.

 

3. Grounds for Defense

• Admit the claim: If you admit that the claimant is right but you want to propose a solution (e.g., payment plan), you can admit the claim and offer terms.

• Deny the claim: If you disagree with the claim, your response will state the reasons you believe the claim is incorrect. For example, it might be because the debt is not owed, or the claimant has not provided sufficient evidence to support their case.

• Partially admit the claim: If you agree with part of the claim but dispute the rest, your response should outline which parts of the claim you accept and which parts you dispute.
   

4. Defense Arguments

• You should clearly outline your arguments or defenses, such as:

  • Disputed facts: Where you believe the claimant's version of events is incorrect.

  • Legal reasons: For example, you might argue that the claim is time-barred under the Limitation Act, or that the claimant has failed to follow proper procedure.

  • Counterclaims: If you have a valid claim against the claimant, you can file a counterclaim. This is treated as a separate claim but is dealt with in the same proceedings.
     

5. Evidence and Documents

• Attach any relevant documents, emails, letters, contracts, or evidence that supports your defense.

• You may also need to provide a witness statement if you want someone to testify on your behalf.
   

6. Counterclaim (if applicable)

• If you believe the claimant owes you money or has caused you harm, you can file a counterclaim. This means you are suing them as well. A counterclaim will also need to be filled out and submitted as part of your response.
   

7. Hearing

• After you submit your defense, the court will review the information. The judge may decide to hold a hearing if they think it's necessary to resolve the dispute.

• If a hearing is scheduled, you and the claimant will be given the opportunity to present your arguments and evidence.

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5. Enforcing the Judgment
Enforcing a judgment in a small claims case in the UK means taking action to ensure that the defendant pays the amount that the court has ordered them to pay. If a defendant does not pay after the judgment has been made, you may need to take further steps to enforce that judgment.

Here are the main options available for enforcing a small claims judgment in the UK:

1. County Court Judgment (CCJ)

If the defendant does not pay the judgment amount within the time given by the court (usually 14 days), they will have a County Court Judgment (CCJ) recorded against them.

Options for enforcement:

• Charging Order: This places a charge on the defendant's property. If the property is sold, the judgment creditor (you) can claim the money owed.

• Attachment of Earnings Order: If the defendant is employed, the court can order their employer to deduct a percentage of their wages to pay you. This is a good option if the defendant is employed and has regular income.

• Third Party Debt Order: If the defendant has money in a bank account, you can apply for an order to freeze the money and have it transferred to you.

• Warrant of Execution: This is where bailiffs (court enforcement officers) come to the defendant's property to seize goods that can be sold to pay the debt. If the defendant refuses to cooperate, the bailiff can remove property and auction it.
   

2. Bailiffs

You can ask the court to send bailiffs to collect the debt. There are two types of bailiffs you can use:

• High Court Enforcement Officers: Can be used for larger debts, typically those over £600.

• County Court Bailiffs: Can be used for smaller debts.

The bailiffs will attempt to either seize goods or negotiate payment arrangements with the debtor. If they can’t seize goods, they may arrange for payment through installments or demand immediate payment.
 

3. Attachment of Earnings Order

If the defendant is employed, you can ask the court to make an order to have their employer pay part of their wages directly to you. This can be an ongoing arrangement until the debt is paid off. However, the court will not usually make an attachment of earnings order if the defendant's wages are below a certain threshold.
 

4. Charging Order

This option is for securing the debt against the defendant’s property. It can be used when the defendant owns land or property. If the defendant sells the property, the money from the sale will go towards paying the debt. A charging order does not force a sale immediately but secures the debt.
 

5. Order to Obtain Information

If you don’t know where the defendant works or what assets they own, you can apply for an "Order to Obtain Information." This is a court order that forces the defendant to attend a hearing and answer questions about their financial situation.
 

6. Bankruptcy (for debts over £5,000)

If the amount owed is over £5,000, you can apply for bankruptcy proceedings. This is a last resort option and typically only used when other methods have failed, as bankruptcy has long-term consequences for the debtor.
 

7. Charging Order over Goods (known as a "Charging Order over Goods")

This involves obtaining a court order for the debtor to pay a specific amount over a set period. If the debtor fails to pay, the creditor can seize goods and sell them to recover the debt.

General Steps to Enforce the Judgment:

1. Wait for the Judgment to be Issued: Make sure the defendant has not paid within the 14 days or the time specified by the court.
    

2. Decide Which Enforcement Action to Take: Based on what you know about the debtor’s financial situation, choose one of the enforcement methods above.
    

3. Apply to the Court: You may need to fill out an application form (N322) or other relevant documents and submit them to the court, sometimes with a fee.
    

4. Pay Fees: Be aware that there are fees for enforcement actions, such as the cost of using bailiffs or applying for a charging order. These fees can usually be added to the debt you are trying to recover.

 

6. What Can You Claim?

In the UK, small claims court allows individuals to resolve disputes over relatively small amounts of money, without the need for a lawyer. It is designed to be a quicker and less formal way to settle civil disputes. You can claim for a variety of issues, including:

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1. Money Owed (Debts)

• Unpaid bills: If someone owes you money, whether it's for a personal loan, services, or goods provided, you can claim this back in small claims court.

• Rent arrears: If you're a landlord and a tenant hasn't paid rent, you can make a claim to recover the arrears.
   

2. Damaged or Faulty Goods

• If you’ve bought goods that are faulty or not as described, you may be entitled to a refund or compensation.

• For example, if you purchased a car that was sold with undisclosed faults, you could claim compensation for repairs or a replacement.
   

3. Breach of Contract

• If someone has broken a contract, such as not completing a job or not delivering goods as agreed, you can claim damages for the loss or inconvenience caused.
   

4. Personal Injury (Minor Injuries)

• If you’ve suffered a minor injury and the cause is someone's negligence (for example, slipping on a wet floor in a shop), you might be able to claim compensation for pain, suffering, and related costs.
   

5. Property Damage

• If someone causes damage to your property (e.g., a neighbor damages your fence or car), you can seek compensation through small claims court.
   

6. Non-payment of Wages

• If you're an employee and your employer hasn't paid you correctly or on time, you can claim for any outstanding wages or holiday pay.
   

7. Compensation for Services

• If you paid for services (e.g., repairs or professional advice) and the service was not completed to the agreed standard or was not done at all, you may be able to claim compensation or request the service be completed.
   

8. Tenancy Disputes

• If you're a tenant and you have issues with your landlord (e.g., failing to return a deposit, withholding rent wrongfully), you can make a claim.

 

9. Unlawful Deductions from Wages

• If an employer has deducted money from your wages without lawful reason, you can claim it back.

 

10. Consumer Rights Issues

• If you’ve bought something that’s faulty, damaged, or not as described, and the business refuses to offer a refund or replacement, you can claim against them.
   

The Limits:

• Claim Amount: Small claims in the UK are limited to £10,000 for most cases, though personal injury claims have a lower limit of £1,000.

• Costs: The cost of taking a case to small claims court is generally lower than that of a full court trial, but you may still have to pay fees for filing your claim and any court hearings.
   

7. Advantages of MCOL
The Money Claim Online (MCOL) system in the UK is a digital service provided by the government to make it easier for individuals and businesses to pursue small claims in court. These are typically claims for amounts up to £10,000. There are several advantages to using MCOL for small claims:
 

1. Convenience and Accessibility

• Online Process: MCOL allows you to make claims from the comfort of your home or office. You don't need to visit the court in person unless your case goes further.

• 24/7 Availability: The platform is available 24 hours a day, 7 days a week, making it easy to submit and track your claim at any time.
   

2. Lower Cost

• Reduced Court Fees: MCOL offers a streamlined process that can be cheaper than using traditional court methods. The fees for filing a claim are typically lower than the fees for other routes such as using solicitors.

• No Legal Representation: You can represent yourself without the need for an expensive solicitor, which is common in small claims cases.
   

3. Speed and Efficiency

• Faster Process: MCOL claims generally progress faster than traditional court cases. Once you submit your claim, the defendant has 14 days to respond, and the overall process tends to be quicker.

• Simplified Procedures: The process is straightforward, with clear steps for both claimants and defendants. This can make it less overwhelming, especially for people with no legal experience.
   

4. Easy to Use

• User-Friendly Interface: The MCOL platform is designed to be simple and easy to navigate, even for people with limited experience in legal matters.

• Clear Guidance: The website provides step-by-step instructions and helpful FAQs, making it easy to understand what is required at each stage.
   

5. Track Your Claim

• Online Tracking: You can track the progress of your claim online, making it easy to stay updated on what’s happening and whether the defendant has responded, filed a defence, or made a payment.
   

6. Paperwork and Documentation

• Digital Evidence Submission: You can upload evidence and documentation directly to the system. This saves time and effort compared to submitting physical paperwork.

• Record Keeping: You will have an online record of all documents, claims, and correspondence related to your case.
   

7. No Need for Legal Knowledge

• Simple Process for Small Claims: For small claims, the process is designed to be straightforward enough that you don’t need to have legal knowledge or hire a lawyer, making it more accessible for individuals.
   

8. Ability to Enforce Judgments

• Easier Enforcement: If your claim is successful, MCOL helps you understand the next steps for enforcing the judgment, such as taking enforcement action if the defendant does not pay voluntarily.
   

9. Suitable for Various Types of Claims

• Variety of Cases: MCOL can be used for a wide range of claims, such as unpaid debts, contract disputes, faulty goods, or services, making it a versatile option for people needing to resolve financial disagreements.
   

10. Transparency

• Clear Communication: All communications are sent electronically, meaning there’s a clear trail of actions taken by the court and the parties involved in the case.
   

11. No Need for Physical Court Attendance (Initially)

• No Court Hearings (Initially): For smaller claims, you don’t have to attend a court hearing unless the case is disputed or escalated. Most cases are resolved through paperwork and documents submitted electronically.
   

8. Disadvantages of MCOL
Disadvantages to Consider

While there are many benefits, it’s also important to keep in mind that MCOL may not be suitable for every case, particularly those that are more complex or require detailed legal advice. Additionally, the defendant has 14 days to respond, and if they dispute the claim, the process can take longer or escalate to a formal court hearing.