The Late Payment of Commercial Debts (Interest) Act 1998 (the Act) provides certain parties statutory rights to charge interest and compensation on late payment of commercial debts.
This Act comes into play more often than parties may realise, below we have addressed some of the Frequently Asked Questions in relation to the Act.
Can I claim interest and compensation under the Act?
How much interest can I claim under the Act?
How much compensation can I claim under the Act?
Amount of debt | Claimable amount |
---|---|
Up to £999.99 | £40 |
£1000-£9999.99 | £70 |
£10000 and more | £100 |
When can I start claiming the interest?
If no payment date is specified under the contract, interest will accrue 30 days from:
Can I claim my legal expenses?
The first thing you should do is check the agreement you have, and cross reference it with the Act. It may be that there are provisions within the contract which preclude you from relying on the Act, and therefore you should be cautious before simply demanding additional sums from any debtor.
Bishop & Sewell understand the importance and time-sensitivity of recovering debts owed to a business. An inability to collect an invoice could lead to your own creditors not being paid, a requirement to seek cash from other places, or compromise your ability to generally operate your business.
Whether you are looking to recover money, goods, compel a party to comply with a contractual obligation, defend against allegations of breach of contract, or are seeking to extract yourself from a contract you now cannot comply with, Bishop & Sewell have a team of lawyers able to advise you on the options which are available to you.
Whether you are looking to recover money, goods, compel a party to comply with a contractual obligation, defend against allegations of breach of contract, or are seeking to extract yourself from a contract you now cannot comply with, Bishop & Sewell have a team of lawyers able to advise you on the options which are available to you.