Introduction
If someone owes you money and they refuse to pay despite your attempts to resolve the matter, you may decide that court proceedings are necessary.
For many straightforward money claims, Money Claim Online (MCOL) provides a convenient way to start a claim through the County Court without attending court in person.
MCOL is an online service operated by HM Courts & Tribunals Service (HMCTS) that allows eligible claimants to issue certain types of money claims electronically. It is commonly used by individuals, sole traders and businesses seeking to recover unpaid debts, compensation or other sums of money.
Starting court proceedings is an important decision. Before issuing a claim, you should consider whether the dispute could still be resolved through negotiation or Alternative Dispute Resolution (ADR). You should also ensure that you have complied with any relevant Pre-Action Protocols and, where appropriate, sent a Letter Before Claim.
This guide explains how Money Claim Online works, when it can be used, what happens after a claim is issued and the key stages of the process. Whether you are pursuing an unpaid invoice, a consumer dispute or another civil claim, understanding the procedure can help you make informed decisions.
At a Glance
Area of Law: Civil Litigation
Applies to: England and Wales
Operated by: HM Courts & Tribunals Service (HMCTS)
Used for:
- Recovering money owed
- Consumer disputes
- Breach of contract claims
- Unpaid invoices
- Property damage claims
- Other qualifying money claims
Purpose:
To allow eligible claimants to issue County Court money claims online.
What Is Money Claim Online?
Money Claim Online (MCOL) is an internet-based service that allows eligible claimants to start certain County Court claims for money.
Instead of submitting paper claim forms to the court, the claimant completes the application online.
Once the claim is issued, the court serves it on the defendant, who is then given an opportunity to respond.
If the dispute cannot be resolved, the claim may continue through the County Court process.
What Is MCOL Used For?
MCOL is primarily designed for straightforward claims where one party alleges that another owes them money.
Examples include:
- unpaid invoices;
- unpaid loans;
- consumer disputes;
- breach of contract claims;
- claims for the cost of faulty goods or services;
- unpaid deposits;
- property damage where compensation is sought.
The claim must be suitable for the online process and meet the relevant eligibility requirements.
Is MCOL the Same as the Small Claims Court?
Not exactly.
Money Claim Online is a method of starting certain County Court claims.
The small claims track is one of the possible procedures that may apply after a defended claim has been issued, depending on its value, complexity and the applicable Civil Procedure Rules.
In other words:
- MCOL is how many claims begin.
- The small claims track is one way some claims are managed after proceedings have started.
The two terms are often confused, but they describe different parts of the litigation process.
When Can You Use MCOL?
MCOL may be appropriate where:
- you are claiming a specific sum of money;
- the defendant has an address suitable for service;
- the claim is suitable for the online process;
- you are able to provide the required information about the claim.
Whether MCOL is appropriate depends on the nature of the dispute.
When Might MCOL Not Be Suitable?
Not every dispute can be started through Money Claim Online.
For example, more complex claims or claims seeking remedies other than payment of money may require different court procedures.
The HMCTS guidance explains which claims are suitable for MCOL and which must be issued using other methods.
Should You Go to Court Immediately?
Court proceedings should usually be considered only after reasonable attempts have been made to resolve the dispute.
Before issuing a claim, you should consider:
- whether further negotiation is possible;
- whether ADR may help resolve the dispute;
- whether you have complied with any applicable Pre-Action Protocol;
- whether a Letter Before Claim has been sent where appropriate.
Taking these steps may resolve the dispute without the need for court proceedings.
Why Pre-Action Steps Matter
The Civil Procedure Rules encourage parties to exchange information and attempt to resolve disputes before issuing proceedings.
Pre-action steps may help:
- clarify the issues;
- encourage settlement;
- reduce legal costs;
- avoid unnecessary court proceedings.
If proceedings become necessary, evidence that you have acted reasonably may also be relevant to the court’s case management decisions.
What Information Will You Need?
Before starting your claim, it is sensible to gather the key information and documents.
This may include:
- the names and addresses of the parties;
- invoices;
- contracts;
- receipts;
- emails;
- photographs;
- payment records;
- correspondence;
- calculations showing how the amount claimed has been reached.
Having these documents organised before beginning the online application can make the process much easier.
Understanding Your Claim
Before issuing proceedings, ask yourself:
- What legal basis supports the claim?
- What amount is being claimed?
- What evidence supports the claim?
- Has the other party been given an opportunity to resolve the matter?
- Is court action proportionate?
Being able to answer these questions will help you prepare a clear and well-organised claim.
Is There a Time Limit?
Most civil claims are subject to statutory limitation periods.
The applicable time limit will depend on the type of claim being brought.
If you believe a limitation period may be approaching, it is sensible not to delay seeking appropriate advice or taking action.
Why Good Preparation Matters
Although MCOL makes it easier to issue proceedings online, it does not change the legal requirements of bringing a claim.
Claimants remain responsible for ensuring that:
- the claim is properly prepared;
- the information provided is accurate;
- the amount claimed is correctly calculated;
- supporting evidence is available if the claim is defended.
Careful preparation at the outset can reduce delays and place you in a stronger position if the matter proceeds through the court process.
Creating an MCOL Account
To use Money Claim Online, you will first need to create an account with the service.
During registration, you will normally be asked to provide:
- your name;
- contact details;
- an email address;
- login credentials.
Once your account has been created, you can begin preparing a new claim.
Take care to keep your login details secure, as you may need to access your account throughout the court proceedings.
Court Fees
There is a court fee payable when issuing a claim through MCOL.
The fee depends primarily on the value of your claim.
In general:
- higher-value claims attract higher court fees;
- the fee must usually be paid before the claim is issued.
The amount payable is subject to change, so you should check the current court fees before submitting your claim.
In some circumstances, court fees may form part of the amount you seek to recover if your claim succeeds.
Completing the Claim Form
The online claim form asks for information about:
- the claimant;
- the defendant;
- the amount being claimed;
- interest, where applicable;
- court fees;
- the basis of the claim.
It is important to complete each section carefully.
Errors or omissions can lead to delays and may complicate the proceedings.
Identifying the Defendant
You should ensure that the defendant is correctly identified.
This includes using:
- the correct legal name;
- the correct address for service;
- the correct business name where appropriate.
Issuing proceedings against the wrong person or an incorrect legal entity can cause significant difficulties.
If you are unsure who the correct defendant is, it is sensible to establish this before issuing the claim.
Calculating the Amount Claimed
Before issuing proceedings, calculate the amount you are seeking carefully.
This may include:
- the principal debt;
- any contractual sums due;
- interest, where legally recoverable;
- the court issue fee.
Keep a clear record showing how you have calculated the total claimed.
The Particulars of Claim
One of the most important parts of the application is the Particulars of Claim.
This explains:
- why you believe money is owed;
- the legal basis of the claim;
- the key facts relied upon;
- the amount claimed.
The Particulars of Claim should be:
- accurate;
- concise;
- factual;
- easy to understand.
Avoid unnecessary detail or emotional language.
The purpose is to explain the claim clearly so that the defendant understands the case they must answer.
Supporting Evidence
You do not normally upload all of your evidence when issuing an MCOL claim.
However, you should already have your evidence organised in case:
- the defendant disputes the claim;
- further information is required;
- the matter proceeds to a hearing.
Useful evidence may include:
- contracts;
- invoices;
- receipts;
- emails;
- letters;
- photographs;
- delivery records;
- payment records.
Good organisation at this stage can save considerable time later.
Checking Your Claim Before Submission
Before submitting your application, review every section carefully.
Ask yourself:
- Are all names correct?
- Is the address accurate?
- Have I claimed the correct amount?
- Does the Particulars of Claim clearly explain the dispute?
- Are there any typing errors?
Taking a few extra minutes to check the information may prevent unnecessary complications.
Issuing the Claim
Once you have completed the application and paid the court fee, the claim will usually be issued by the court.
The court will allocate a claim number, which should be kept safely as it will be used throughout the proceedings.
Issuing the claim formally starts the court process.
Service of the Claim
After the claim has been issued, it will normally be served on the defendant.
Service means providing the defendant with official notice that court proceedings have been started.
The defendant is then given an opportunity to respond within the timescales set out in the Civil Procedure Rules.
What Can the Defendant Do?
After receiving the claim, the defendant has several possible options.
They may:
- pay the claim in full;
- admit the claim;
- admit part of the claim;
- file a defence;
- file an Acknowledgment of Service;
- fail to respond altogether.
Each option leads to a different stage in the court process.
Paying the Claim
Some defendants choose to pay immediately after receiving court papers.
This may avoid further court proceedings and bring the dispute to an end.
If payment is received in full, you should ensure that any necessary steps are taken to conclude the proceedings appropriately.
Admitting the Claim
A defendant may admit that the money is owed.
Depending on the circumstances, they may:
- offer immediate payment;
- request time to pay;
- propose instalments.
The court may consider any proposed payment arrangements where necessary.
Defending the Claim
If the defendant disputes the claim, they may file a defence.
A defence sets out the reasons why the defendant believes they are not legally liable for all or part of the amount claimed.
Once a defence has been filed, the claim will usually continue through the County Court process.
The court will provide further directions explaining what happens next.
Filing an Acknowledgment of Service
Instead of filing a defence immediately, a defendant may file an Acknowledgment of Service.
This informs the court that they intend to respond to the claim.
Filing an acknowledgment generally gives the defendant additional time to prepare and submit a defence in accordance with the Civil Procedure Rules.
What If the Defendant Does Not Respond?
Sometimes a defendant does not reply within the required time.
Where the legal requirements are satisfied, the claimant may be able to request default judgment.
Default judgment means the court may enter judgment because the defendant has failed to respond to the claim, rather than because the court has decided the dispute after hearing evidence.
It is important to ensure that the rules for obtaining default judgment have been met before making the request.
What Happens After a Defence Is Filed?
If the defendant files a defence, the claim does not automatically proceed to a hearing.
Instead, the court will usually give further directions to help manage the case.
Depending on the circumstances, this may include:
- exchanging documents;
- completing a Directions Questionnaire;
- considering mediation or other forms of ADR;
- allocating the claim to the appropriate court track;
- setting a timetable for the next stages of the proceedings.
Many defended claims are resolved before reaching a final hearing.
Practical Examples
The following examples illustrate how Money Claim Online (MCOL) may be used in different situations. Every case depends on its own facts, and issuing a claim should generally be considered only after reasonable attempts have been made to resolve the dispute.
Example 1 – Unpaid Invoice
A self-employed graphic designer completes work for a client and submits an invoice for £1,250.
Despite several reminders and a Letter Before Claim, no payment is received.
The designer issues a claim through Money Claim Online.
The client admits the claim shortly after receiving the court papers and pays the outstanding balance together with the applicable court fee.
Example 2 – Faulty Kitchen Installation
A homeowner pays for a new kitchen installation, but significant defects remain after the work is completed.
The contractor refuses to rectify the problems or provide a refund.
After gathering evidence and attempting to resolve the dispute, the homeowner issues a claim through MCOL seeking compensation for the cost of remedial work.
The contractor files a defence, and the matter proceeds through the County Court process.
Example 3 – Unpaid Loan Between Friends
One individual lends another £2,000, with repayment agreed in writing.
After repeated requests, the money is not repaid.
The lender issues a claim through MCOL.
The borrower does not respond within the required time, and the lender successfully applies for default judgment.
Frequently Asked Questions
What is Money Claim Online?
Money Claim Online (MCOL) is an online service operated by HM Courts & Tribunals Service that allows eligible claimants to issue certain County Court money claims electronically.
Is MCOL the same as the Small Claims Court?
No.
MCOL is a method of issuing certain money claims.
The small claims track is one of the court procedures that may apply later if a defended claim proceeds through the County Court.
Who can use MCOL?
MCOL may be used by individuals and businesses bringing eligible money claims, provided the claim meets the service’s requirements.
What types of claims can be made?
MCOL is generally used for claims involving money, including:
- unpaid invoices;
- breach of contract;
- consumer disputes;
- unpaid loans;
- compensation claims.
Can every claim be issued through MCOL?
No.
Some claims are not suitable for the service and must be started using other court procedures.
Do I have to send a Letter Before Claim?
In many cases, sending a Letter Before Claim and complying with any relevant Pre-Action Protocols is an important step before issuing proceedings.
Should I consider ADR first?
Yes.
Alternative Dispute Resolution may help resolve the dispute without the need for court proceedings and should be considered where appropriate.
Do I need a solicitor to use MCOL?
Not necessarily.
Many individuals bring claims themselves.
However, understanding the court process and preparing the claim carefully can be beneficial.
Can I claim interest?
Depending on the circumstances, interest may be recoverable.
Whether interest can be claimed will depend on the legal basis of the claim and the applicable law.
How much does MCOL cost?
A court issue fee is payable when the claim is started.
The amount depends on the value of the claim and may change over time.
What happens after I issue my claim?
The court will usually serve the claim on the defendant, who then has an opportunity to respond.
What if the defendant pays immediately?
If the claim is settled in full, the proceedings may be brought to an end without further court action.
What if the defendant ignores the claim?
If the legal requirements are met and no response is received within the relevant time limits, you may be able to request default judgment.
What happens if the defendant files a defence?
The court will normally give further directions to manage the claim.
This may include completing a Directions Questionnaire, exchanging evidence and, where appropriate, listing the matter for a hearing.
Will every case go to a hearing?
No.
Many claims settle before reaching a final hearing.
Can I represent myself?
Yes.
Many claimants and defendants represent themselves in County Court proceedings.
They are often referred to as litigants in person.
What evidence should I keep?
Useful evidence may include:
- contracts;
- invoices;
- receipts;
- emails;
- photographs;
- payment records;
- letters;
- witness statements.
What happens if I win?
If the court decides in your favour, it may enter judgment against the defendant.
If payment is not made voluntarily, you may need to consider enforcement action.
Does winning guarantee payment?
No.
A successful judgment does not automatically result in payment.
If the defendant does not comply with the judgment, separate enforcement procedures may be necessary.
Can I recover my court fee?
Depending on the circumstances and the applicable court rules, the successful party may recover some court fees and other recoverable costs.
How Impel Legal Can Help
Starting a court claim can feel daunting, particularly if you have never been involved in legal proceedings before.
At Impel Legal, we can assist by:
- explaining how the Money Claim Online process works;
- helping you understand whether court proceedings may be appropriate;
- assisting with the preparation of claim documents;
- reviewing supporting evidence;
- helping you prepare correspondence before proceedings;
- explaining the next stages of the County Court process.
Our aim is to help you understand the procedure, organise your documents and present your claim clearly.
Related Guides
You may also find these guides helpful:
- Letter Before Claim
- Alternative Dispute Resolution (ADR)
- The Small Claims Court Explained
- Preparing Evidence for Court
- Witness Statements
- Enforcing a County Court Judgment (CCJ)
- Consumer Rights in England & Wales
- Section 75 Claims: A Complete Guide
Conclusion
Money Claim Online provides a convenient way to start many County Court money claims in England and Wales. While the online process makes issuing proceedings more accessible, it remains important to prepare your case carefully, understand the legal basis of your claim and comply with the relevant court procedures.
Court proceedings should generally be viewed as a last resort after reasonable attempts have been made to resolve the dispute. Where litigation becomes necessary, clear evidence, accurate documentation and a well-prepared claim can help the court understand the issues and manage the case effectively.
Whether your claim settles early, proceeds to a hearing or results in judgment, understanding each stage of the MCOL process can help you approach the proceedings with greater confidence.
Disclaimer
This guide provides general information about Money Claim Online (MCOL) and the County Court process in England and Wales. It is intended for educational purposes only and does not constitute legal advice. Court procedures, fees and rules may change over time, and every case depends on its own facts. If you require assistance with a specific dispute or court claim, you should seek appropriate legal support.