Letter informing a debtor that statutory interest and compensation for debt recovery costs will be charged on all future orders
We have noticed during recent months that your account has fallen into arrears and that your payments for invoices have often been received some time after they have become due.
You will appreciate that such late payment results in interest and other costs being incurred by our business and in an effort to defray those costs, we think it is reasonable that we should be entitled to charge interest on outstanding accounts from the date upon which they become overdue under our Conditions of Sale. You will recall from those conditions (copy attached) that our accounts are due for payment within [xx] days and, to give you a reasonable amount of notice, we advise you that on all orders delivered by us after the first of next month it is our intention to charge interest on overdue invoices at the rate of [insert current interest rate]. We are also entitled to claim compensation for debt recovery costs from you of ranging from £40 to £100, depending on the amount overdue.
Clearly, we hope that by paying our invoices promptly in future such additional charges will not be necessary.
*We are exercising our statutory right to claim interested and compensation charges under the Late Payment of Commercial Debts [Interest] Act 1998, as amended and supplemented by the Late Payment of Commercial Debts Regulations 2002.