If a business does intend to use the act they should state this on all invoices and letters seeking payment. Late payment of commercial debt. How do i collect the interest?Business debts and statutory interest under the late payment of commercial debts interest act 199.

Making a total of 4: notes. It does this by adding a number of rules to contracts between businesses. Morgage advice. If they do make their own arrangements for contractual interest, the late payment legislation will not apply.

These regulations may be cited as the late payment of commercial debts regulations 2002 and shall come into force on 7th august 2002. The rate of late payment interest is 8% above base rate. A copy invoice or items/services payment is owed on. The uk was one of the first countries in the eu to introduce late payment legislation to help promote a culture of prompt payment. How does the act work?

The late payment of commercial debts interest act 199. Our other web- site - justclaim contains a simple guide to using the courts to puruse unpaid debts. Click here to read the latest edition of eurolink. What is a statutory right to claim interest? A credit period that is significantly different from other supply contracts operated by the purchaser.

The late payment of commercial debts interest act 1998 4 shall be amended as follows. The late payment of commercial debts interest act 1998 commencement no. For commercial contracts dated before 7 august 2002. A payment is late once the agreed credit period or the default period has expired.