Changes to the late payment legislation. Th aug 2002 applicable to all commercial contracts note that these apply to contracts formed after the dates specified. Prepaid credit card. Purchasers who wish to avoid future claims for interest should pay their bills on time. Relationship 'in which this kind of payment arrangement has become standard practice. Re- mortgages, further borrowing and secured loans. The late payment of commercial debts interest act 1998 is now in force at least as far as small businesses are concerned.

Satisfy these conditions, and you're entitled to interest at 8% over the 'official dealing rate' see below , according to the date on which the statutory interest started to run. Receivers or liquidators of a business may pursue its purchasers for interest on late payment going back over this period. For help and advice to avoid being chased for monthly payments call 0800 138 5445, or complete the enquiry form. We also have a one page information sheet we provide to customers when they pay late, explaining the penalties. C for a debt of £10, 000 or more, the sum of £100. The act was to have been introduced in 3 distinct phases and until 7 august 2002 phase 2 is in force. One aspect of the terms is when and how to make the payment.

Alternatively, visit the court service's own web- site. The new regulations can be found here. However most businesses automatically assume of 30 day payments period regardless of the company they are dealing with. 15 year fixed rate mortgage. Late payment of commercial debts.

The table below provides a brief summary of how the legislation works on sales prior to 7 august 2002. If the 10, 000 becomes overdue then 13% interest per year is 1, 300 giving a daily rate of 3. 56. The late payment of commercial debts interest act 1998 commencement no. 3.

These pages provide general advice on late payment penalties as applicable to commercial debts in the uk. However, we make a point of making it very clear to our customers. You may read these pages on- line, and download them to read later, for your own personal use. Our advice is to issue an invoice for the penalty charges. The late payment of commercial debts regulations 200.

If the purchaser simply does not pay the interest, the supplier can pursue the claim through the courts. Consumer credit service. If the buyer does not make the payment within these terms then they are late. You must not redistribute these pages or any part of them in any form or medium without first obtaining my consent. For a 30 day overdue payment on £400. 0.

The late payment of commercial debts interest act 1998 commencement no. Consumer credit service. Compensation arising out of late payment. This allows small businesses to charge each other statutory interest, as well as large businesses and the public sector, for the late payment of commercial debt.