Practical Guide to Small Claims Litigation in the UK: £35 to sue a merchant + £10,000 upper limit + 5-step process, a must-read for Chinese rights defenders

The landlord took your £1,800 deposit and won’t refund it? The decorator took money and disappeared? The second-hand mobile phone bought in an online store has a black screen as soon as it is turned on, and the seller refuses to refund? These amounts are not big or small - it is not cost-effective to hire a lawyer, and I feel that I am unlucky and cannot swallow this sigh of relief. In fact, British law has already given you a severely underestimated weapon: Small Claims Court (small claims civil litigation) .

A case can be filed for just £35, and ordinary people can win on their own, and the losing party does not need to bear the other party's legal fees - this system is designed for "small amounts, individuals versus businesses". Today we will talk about the process, fees, pitfalls and relationship with permanent residence in one go. 📨

Small claims litigation is not an independent court, but a special "track" under the British Civil Court (County Court) - Small Claims Track, regulated by CPR Part 27 (Civil Procedure Rules Part 27) .

It has three core attributes: ① The claim amount is ≤ £10,000; ② The procedure is simplified and no lawyer is required; ③ The losing party generally does not need to bear the other party’s lawyer fees , and only compensates court fees, reasonable travel, and up to £95 in lost work expenses. This is the biggest difference from ordinary litigation, and it is also the most useful tool for Chinese people to use when defending their rights.

If you spend more than £10,000 and enter the Fast Track (£10,000-£25,000), the costs and risks will increase exponentially. We will not start today.

1. The landlord withholds the deposit and refuses to refund it - TDS arbitration fails, or the deposit is withheld without registration;
2. The merchant refuses to refund/refuses to perform the contract - Decoration masters, moving companies, second-hand cars, online shopping disputes;
3. Employer arrears wages - The amount is small and does not want to leave Employment Tribunal
4. Non-repayment of personal loans ——Friends, partners, with WeChat/email records;
5. Minor losses in car accidents ——The other party refuses to pay for car repairs, so it’s a secret.

UK civil litigation has a mandatory Pre-Action Protocol (pre-action protocol) . Skip this step and file the case directly. The judge has the right to fine you and bear the other party's costs, even if you win the case in the end.

This Letter Before Action (LBA) must clearly state: who owes whom, how much is owed, legal basis, amount calculation method, response period (usually 14 days, complex cases can be given 30 days), and "If you do not reply, you will file a lawsuit."

Step 1｜MCOL online case filing
Log in www.moneyclaim.gov.uk (Money Claim Online, referred to as MCOL) or the new version moneyclaims.service.gov.uk, fill in the information of both parties, the claim amount, and the factual statement. The processing fee for the online version is about 10% cheaper than the paper version.

Step 2｜Pay the issue fee (Issue Fee) , the amount is as follows:

This amount can be added to your claim amount, and will be reimbursed by the other party if you win. Those with low incomes or receiving welfare benefits such as Universal Credit can apply for Help with Fees (EX160 form), which is free of charge up to 100%. The specific amount is subject to the EX50 form published by GOV.UK.

Step 3｜Service + Waiting for Answer
The court serves the complaint to the defendant, and the other party has 14 days to respond. If does not respond for 14 days, you can apply for a Default Judgment and win directly. In fact, a considerable proportion of "laosha" merchants fall into this step - they think that they will be fine if they ignore it.

Step 4｜Allocate trial + hearing fee
After the other party responds, the court issues a Directions Questionnaire (N180 form) to determine the trial method and court date. A Hearing Fee is charged and varies by amount from approximately £27 to approximately £346. Less than 20% of small-amount cases actually go to trial - most of them are tried in writing or settled before trial.

Step 5｜Free mediation or hearing
The court will strongly recommend going to HMCTS Small Claims Mediation Service (free telephone mediation, about 1 hour). If mediation fails, the court session usually ends in 1-2 hours. There is no lawyer robe or jury. The judge pronounces the verdict in front of the court. The atmosphere is much more relaxed than expected.

Pitfall 1｜If the defendant’s address is incorrectly written as
and “unknown address”, you will be stuck for several months. Landlords can check the property address on Land Registry (£3); merchants can check the registered address on Companies House, free of charge.

Pitfall 2｜No LBA is issued and the case is filed directly
Even if the judge rules that you win, you may still have to pay out of pocket. This is the most easily overlooked flaw.

Pit 3｜Skip the free Alternative Dispute Resolution (ADR)
Deposit type go to TDS/DPS arbitration first; financial type go to Financial Ombudsman; consumer type use merchant’s ADR Scheme. Free, risk-free, and will not affect subsequent litigation.

Pitfall 4 | Worry that civil litigation will affect the UK permanent residence application
This is the most commonly asked question by Chinese people, and the answer is clear: , as a plaintiff, sues others, and it will not have any negative impact on ILR / permanent residence application . Home Office is concerned with criminal records (criminal conviction) and fraud records, not civil disputes. Even if you respond as a defendant, as long as it is not a fraudulent ruling, it will have minimal impact on your permanent residence. If you are worried about whether your residence period is sufficient, you can use the 永居计算器 APP to calculate to the day, which is more reliable than repeated guessing.

The court will give you a County Court Judgment (CCJ) , but enforcement (Enforcement) requires you to apply separately:

Without taking the initiative to apply for enforcement, the CCJ is just a piece of paper. But even if it is not executed, CCJ will be recorded on the other party's credit report for 6 years - for many corporate defendants, this is enough for them to take the initiative to settle the bill. The law is not to scare people, it is to fulfill them. ⚖️

💬 Chat in the comment area: Have you ever been "prostituted" by a landlord, businessman or employer in the UK? In the end, should we resort to small claims litigation, ADR arbitration, or admit defeat? How much was the amount and how long did it take to resolve? Write it down to give a real reference to Chinese people who are also on the road to safeguarding their rights.

If you find it useful, please forward it to your friends who are also applying for permanent residence in the UK or defending their rights - next time they want to "forget it", at least they know that there is still a £35 cost of counterattack.

[Data source] GOV.UK Make a court claim for money & EX50 Civil Court Fees; Justice.gov.uk CPR Part 27; Citizens Advice Small Claims Guide.