Claiming Late Payment Charges 2017-02-08T15:13:17+00:00

Claiming Late Payment Charges and Interest

The Late Payment of Commercial Debts (Interest) Act 1998 was introduced for the purpose of compensating Creditors for the late payment of debts and to penalise those Debtors who exceed payment terms and misuse their supplier’s credit facilities. Please contact us for help and advise on claiming late payment charges and interest.

Can everyone claim Late Payment Charges for overdue payments?

No, The Act relates purely to Commercial debts (business-to-business transactions).

What can I claim in Late Payment Charges?

The amount that a Creditor is entitled to claim is as follows:-

Amount of Debt Late Payment Charge
<£1,000 £40
£1,000 -£9,999 £70
>£10,000 £100

 

Can I claim Interest as well?

Yes. You will be entitled to claim Statutory Interest which is currently 8% pa.

Alternatively, if your Terms and Conditions include provision for interest you may be entitled to claim contractual interest.

What are Reasonable Costs?

In some cases it is possible to claim any ‘reasonable costs’ that have been incurred in collecting your debt as well as the fixed costs.

Contact us today to discuss your matter in confidence

GET IN TOUCH

There Are Four Key Stages That We Follow In The Debt Collection Process

4-stage-1A Letter Before Action to the Debtor states the value of the debt and the time frame for payment. In most cases the debt is settled quickly and we do not take the matter further.
4-stage-2If the debt is still not paid or a reply has not been received we issue a County Court Claim.
4-stage-3If an Acknowledgment or Defence is not received within the Court time frame we will apply for a County Court Judgment (CCJ).
4-stage-4There are a number of different ways to enforce the Judgment once obtained.

What We Do Best

  • Claiming Late Payment Charges
  • Enforcement
  • Disputed Claims
  • Overseas Collections
  • Alternative Dispute Resolution
  • Terms & Conditions Consultation

What Our Clients Say

In twenty or so years of using Lane & Co as our solicitors for assisting in collecting overdue debt, we have had nothing but exemplary service and are always welcomed with a friendly and professional attitude. They have regularly proved to be a valuable and cost effective asset to our own business. Thoroughly recommendable!
Paul DuncanAccounts Receivable ManagerEaton-Williams