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Debt recovery costs

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10 years 10 months ago #61 by Woodhead
Replied by Woodhead on topic Re: Debt recovery costs
I would like to add that I am in favour of the late payment act and have and still do use this, if necessary, when collecting debts, and only charge reasonable amounts of compensation. However, it is just that when I believe someone is using this law in appropriately then you need to speak out otherwise it is open to abuse and that does not help anyone.

To charge £40.00 for each invoice when the invoices were paid after 8 days from the invoice date, seems a little harsh and could have easily have been raised as one consolidated invoice and if need be charge one £40.00/£70.00.

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10 years 10 months ago #62 by David J
Replied by David J on topic Re:Debt recovery costs
Hello Beverley

You would be better to seek proper legal advice from your solicitor as to whether it would be worth defending or not.

In my opinion charging £40.00 or £70.00 per invoice is not in the spirit of the legislation. It was not designed to be used in this way.

Philip made an interesting point earlier regarding the wording of the legislation though, and it is clearly an area that needs clarification.

Philip also mentioned

Of course, this could be an area of negotiation between the parties

Maybe talking with the company will help you both reach a mutually agreeable compromise.

David

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10 years 10 months ago #63 by office@adminandsupportservices.co.uk
David Tyler wrote:

Philip made an interesting point earlier regarding the wording of the legislation though, and it is clearly an area that needs clarification.

David


Not sure what clarification is needed. The wording of the legislation seems perfectly clear to me. For each time a debt becomes overdue claim £40/£70/£100.

Where, however, different debts become overdue on the same date (i.e. multiple invoices issued on the same date), then there is a valid argument that they became overdue at the same time, and so a 'consolidated' compensation entitlement would be payable rather than treating each invoice as different debts in calculating the amount due.


Philip

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10 years 10 months ago #64 by ltaylora_tech@btinternet.com
Hi there
I am currently dealing with a company that has successfully claimed per invoice and won 15 cases. There is no defence when it comes to late payment. As long as you have your bank statements and remittance advice slips to prove each invoice was late the company you are issuing against has no leg to stand on. If it is late it is late!
Use the county court small claims to issue your claim, it costs £108 though but these fees are claimed back. Keep your claims under £5,000 (inc your court fee) and issue as many as you like!
Hope this helps.

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10 years 10 months ago #66 by ashley smith
Replied by ashley smith on topic Re:Debt recovery costs
I would concur with Philip (and have successfully claimed against clients on this basis).

This point is highly relevant if your were for example seeking to claim interest and statutory charges on all late invoices issued and now paid over the past six years.

If your client has continually paid late over the period is it reasonable to claim say £40 on the last outstanding invoice or say £2,400 for say five years of monthly late paid invoices (eg. £40 x 12 months x 5 years) for which you have incurred substantial time and effort in the chasing and collection.

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10 years 10 months ago #69 by office@adminandsupportservices.co.uk
Ashley Smith wrote:

If your client has continually paid late over the period is it reasonable to claim say £40 on the last outstanding invoice or say £2,400 for say five years of monthly late paid invoices (eg. £40 x 12 months x 5 years) for which you have incurred substantial time and effort in the chasing and collection.


I'd go for claiming £2,400, explain the validity of the claim (always helpful to quote legislation), and then offer to reduce the claim to, say, £2,000 if paid within ten days.

Sending a copy of this document with your generous offer to write off £400 can help!

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Philip

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