How to Start a Small Claims Case for Online Purchase Problems

When an online purchase goes wrong - for example, because goods were faulty, a seller failed to deliver, or a refund was wrongly refused - you may be able to start a small claims case in England and Wales to recover money owed or seek compensation. The small claims track provides a streamlined legal process for resolving low‑value disputes without the formality of a full court trial. This guide explains the steps involved, the legal framework, time limits, evidence requirements, costs, potential risks, and common questions, to help you understand how to pursue a claim effectively.

What Is the Small Claims Track?

The small claims track is part of the County Court system and applies to civil disputes where the financial value is typically £10,000 or less. Cases on this track are designed to be more informal and accessible, enabling individuals and businesses to represent themselves without solicitors if they choose. The procedure is governed by the Civil Procedure Rules, Part 27, which sets out the process for handling these claims.

For most consumer disputes arising from online purchases - such as contracts not honoured, defective goods, or breaches of the Consumer Rights Act 2015 - the small claims track is the normal route for legal action.

Step 1: Try to Resolve the Dispute Informally

Before starting a formal claim, you are expected to take reasonable steps to try to resolve the issue with the seller. This includes:

• Contacting the trader in writing, clearly explaining the problem and stating what remedy you seek (refund, repair, replacement, or compensation).
• Setting a reasonable deadline for the seller to respond, typically 7–14 days.
• Considering Alternative Dispute Resolution (ADR) such as mediation or ombudsman services, which can resolve disputes more quickly and at lower cost than court.

A formal Letter Before Claim (sometimes called a “letter before action”) helps show you have given the other party a chance to address the issue before starting legal proceedings. This can be important if the case goes to court.

Step 2: Decide How You Will Make Your Claim

If the dispute cannot be resolved informally, you can start a small claims case. There are two main methods:

Online Claim

The most common option is the Money Claim Online (MCOL) or Civil Money Claims service provided by HM Courts & Tribunals Service. You can:

• Issue the claim online by completing the required forms and paying the court fee.
• Follow the step‑by‑step online process, which usually includes entering details of the claim, the amount you are seeking, and attaching supporting evidence.

Online claims are often quicker, and the system guides you through the process.

Paper Claim

Alternatively, you can complete a paper claim form (Form N1) and submit it by post or at your local court. This may be necessary if you cannot use the online service (for example, if you are under 18, or the online system is not suitable).

Step 3: Complete the Claim Form

When completing your claim:

• Describe the dispute clearly: explain what happened, why you believe the seller is liable, and the legal basis for your claim (for example, breach of contract under the Consumer Rights Act 2015).
• State the amount you are claiming: include any compensation, refunds, interest, and any losses directly caused by the breach.
• Provide evidence: attach copies of receipts, order confirmations, correspondence with the seller, photographs of defective goods, and any other documentation that supports your case.

The court will not check your claim for accuracy before issuing it, so it is important to ensure the details are correct before submission.

Step 4: Pay the Court Fee

There is a court fee to issue a small claim. The amount depends on the value of the claim. Fees are usually a percentage of the amount you are claiming. If you succeed, you may be able to recover this fee from the defendant, but this is not guaranteed.

If you are on a low income or receive certain benefits, you may be eligible for reduced court fees. Check the GOV.UK guidance to confirm eligibility before filing.

Step 5: Serve the Claim

After the court issues your claim, the claim form and details must be served on the defendant (the seller). If filed online, the system usually handles service. If filed on paper, you may need to arrange service yourself, typically by post.

Service must be done within specified time limits; failing to serve the claim properly can delay the process or result in dismissal.

Step 6: Defendant's Response

Once served, the defendant has a set period to respond:

• They can admit the claim and pay the amount.
• They can deny the claim and submit a defence.
• They may submit a partial admission or request more time to reply.

If the defendant fails to respond in time, you can apply for default judgment, where the court may decide in your favour without a hearing.

Step 7: Directions Questionnaire and Case Management

If the defendant disputes the claim, the court may send a Directions Questionnaire (Form N180) to determine how the case should progress. This helps the court allocate the case within the small claims track and set deadlines for evidence exchange and, if necessary, a hearing.

The court may offer mediation or ADR at this stage, and you will need to indicate whether you agree to such options.

Step 8: Prepare for the Hearing (If Required)

If the case proceeds to a hearing:

• You may be asked to submit your evidence and witness statements by specified deadlines.
• Hearings are less formal than other civil trials, and you can present your case without a solicitor.
• Bring original documents, clear copies, and a summary of your key points.

The judge will decide based on the evidence and legal arguments presented.

Costs and Recovery

On the small claims track, costs are generally limited. Even if you win, the court will only order the defendant to pay limited amounts, such as your court fees and reasonable out‑of‑pocket expenses. You cannot usually recover solicitor costs.

Risks and Practical Considerations

• Time and effort: even small claims require preparation and compliance with court deadlines.
• Evidence quality: weak or incomplete evidence can reduce your chances of success.
• Costs if you lose: while costs are limited, you may still incur fees that you cannot recover.
• Defendant location: if the seller is outside England and Wales, additional procedural complexities may arise.

Before starting a claim, ensure you understand the process and evaluate whether court action is proportionate to the amount at stake.

Key Takeaways

Starting a small claims case for online purchase problems involves the following steps:

1. Attempt informal resolution with the trader, including a Letter Before Claim and ADR.
2. Decide on the filing method: online (MCOL) or paper form.
3. Complete the claim accurately, setting out facts, legal basis, and evidence.
4. Pay the court fee and arrange service on the defendant.
5. Respond to the defendant's reply, potentially seeking default judgment.
6. Manage the case through Directions Questionnaires and evidence exchange.
7. Attend a hearing if required, presenting your case clearly and persuasively.

This process is designed to be accessible without legal representation and helps consumers enforce their rights when online purchases go wrong.