RE: FN-FORUM: Client not paying (advice)

date posted 13th June 2003 17:42

> I've heard that it can be beneficial to quote "The Late Payment
> of Commercial
> Debts (Interest) Act 1998" on your documentation. Not sure of the exact
> rules (details on the payontime site) but I believe you are entitled to
> charge interest at a certain rate, for late payments.
>

Indeed, I mention this in my T&Cs and then have the following on the
invoice, (which anyone else is free to use if it suits them):

Full and final settlement by BACS transfer to bank details supplied on
invoice, or via cheque if BACS is not available, is due within 30 days of
the date of invoice. Any payment after 30 days will accrue interest at the
rate of 12% and reasonable debt recovery costs as per the Late Payment of
Commercial Debts (Interest) Act 1998 and 2002. View the Act:
www.payontime.co.uk/downloads/late_payment_brochure.pdf


The interest you can charge is not much of course, but don't forget about
the 'debt recovery costs' which are (viewed here:
http://www.payontime.co.uk/legislation/legislation_main.html):

Size of unpaid debt Sum to be paid to the creditor
Up to ?999.99 ?40.00
?1,000.00 to ?9,999.99 ?70.00
?10,000.00 or more ?100.00


If you want to send a letter from a solicitor, I had this company personally
recommended to me recently: http://www.thomashiggins.com - ?1.75 for a
seven-day warning letter then they handle all the court stuff for you if you
decide to take it further, or leave it at just the letter if that's all you
need.


Regards

Elizabeth

Elizabeth Varley
Writer, Editor &
Content Strategist
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