Re: FN-FORUM: Charging interest for non paying client

date posted 21st April 2008 15:09

Take not of Ian's helpful note. It is almost exactly what to do (amended for
your circumstances of course). Thread comments on contract are well set
out - if you did the work and can show it then there is a "treaty", a
contract, no matter whether written or verbal. The law presumes against
donation, so there is no defence that you did some or all of the work on
spec, free, or some other notional excuse - unless written exchanges prove
otherwise.

I should declare an interest (no pun intended) - I drafted and introduced
the Act Ian refers to. You are safe in law - protected as a matter of
statute.

As for your time based mediation ("kindness") in setting out your request to
the client, the general rule is to be firm but reasonable. 10 days notice is
reasonable before taking legal action for a long standing debt. Staff at the
small claims court will help you. If you want your draft claim checked I can
do that for you prior to presenting it to court. Always charge statutory
interest, your outlays in collection costs and any other costs you incurred
as well as the principal debt.

HTH...

Mike A.

From: "Ian Piper" [EMAIL REMOVED]

On 21 Apr 2008, at 12:43pm, Duncan Glendinning wrote:

>
> Good Morning,
>
> I know this has been talked about on a couple of occasions, but the
> forum archive on freelancers.net doesn't appear to be searchable.
> Anyhoo, what I am after is some advice. I have a very difficult
> client, who, despite being sent an invoice clearly stating 14 day
> payment terms has said that she will pay me when her client pays her.
> As far as I am concerned my getting paid has nothing to do when she
> gets paid, does it?


I used wording like this with a client last year (having sent them two
warning letters once the 30-day "grace" period was up):

"
We are writing with reference to our earlier communications about non-
payment of our
invoice number ***. As you will know, this invoice was issued on 2
July 2007 and became
overdue under the terms of the Late Payment of Commercial Debts
(Interest) Act 1998 on
Wednesday 1 August 2007.

We are now claiming interest under the Late Payment of Commercial
Debts (Interest) Act
1998 at the rate of 13.5% from 01/08/2007 to 14/08/2007 in the sum of
£***.** and
continuing at the same rate up to the date of judgment or earlier
payment at the daily rate of
£**.**.

We are also claiming compensation arising from late payment under
section 5A of the Late
Payment of Commercial Debts (Interest) Act 1998. Under the table of
compensation set out
in this provision, £**.** is owed.

Original debt £****.**
Compensation £***.**
Interest to date (14 August 2007) £**.**
Total £****.**

The total amount now owed is £****.**. Please make payment of this sum
immediately. If
you do not pay the appropriate sum outstanding by 20 August 2007
county court action will
be taken against you.
"

The client in this case, having been completely intransigent,
immediately paid the whole sum demanded. YMMV, natch.


Ian.
--
Ian Piper
Tellura Information Services - the web, document and information people
Registered in England and Wales: 5076715, VAT Number: 874 2060 29
http://www.tellura.co.uk/
01926 811574 | 07973 156616
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