Why should you lose out on accrued interest because a debtor has withheld your money? Quite simply, if you don’t claim it you will miss out.
Whether you are owed money for a business to business transaction or you are personally owed money for a commercial transaction but have no terms and conditions detailing what amount of interest you are due. The Late Payment of Commercial Debts (Interest) Act 1998 have set out that you can claim interest at 8% over the base rate, which currently stands at 0.5%.
Interest can be claimed on debts that are owed for services or goods from the date the invoice is due without Court proceedings even needing to be issued. If you have a debt of say £900.00 which is outstanding interest can be claimed at 8.5% per day which calculates at 21p per day and will soon add up. The interest continues to run until the debt is paid.
Further, under the Late Payment of Debts Regulations 2002 and 2013 they set out that you can also claim late payment charges as follows:-
(a) for a debt less than £1,000, the sum of £40
(b) for a debt of £1,000 or more, but less than £10,000, the sum of £70
(c ) for a debt of £10,000 or more, the sum of £100
Interest can be claimed pursuant to your own terms and conditions if these are applicable to the debt and will be at the rate set out in your terms, whether this is compound interest or simple. If you are unsure of what your terms and conditions say please check.
In a non- commercial contract, interest can be claimed on debts from the date the amount is due, but only once Court proceedings have been issued. This can be claimed whether the parties are or are not acting in the course of business and even where they have not agreed to interest being payable in terms and conditions beforehand.
For more information please contact Philippa McDonald
Phone Number: 01752 388883