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Home page Credit management advice Late Payment letters & forms Interest & compensation charged on existing debt

Letter informing a debtor that statutory interest and compensation for debt recovery costs will be charged on an existing debt

 

Address 1
Address 2
Address 3
Address 4

[Date]

Dear

Reference/ Account number:

Balance Due as at [date]: £[ ] (Comprising capital sum of £[ ] plus interest of £ [ ] plus compensation for debt recovery costs of £[ ]).

Your payment for invoice number [ ] for [specify goods purchased] is now [X] days overdue. No queries have been raised on your account, so the balance remaining is undisputed.

In accordance with the late payment legislation, our company charges debt recovery costs of [£ ] and interest on late payments of X% (i.e. the current reference rate plus 8%). This means that interest will continue to accrue on the above invoice at a rate of [ ] a day. As of today's date, the outstanding interest stands at [ ].

Please send me your payment by [specify desired method of payment] by return of post. If you have any queries, please contact me by telephone on [ ].

Yours sincerely

 

Credit Manager

 
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