Act working against small companies

I have recently received a claim, created by a claims company, on behalf of the liquidators of a failed company, for interest and compensation on a couple of small invoices that were paid in full about 42 days after the date of invoice.
These invoices relate to transactions that happened just over 5 years ago. As far as I can tell, there were no issues at the time, and the supplier did not have to chase for money. The interest being claimed amounts to around £2, but for each invoice there's the £40 compensation charge
This is the first time I've experienced something like this, and my first impression was that it was some sort of scam. Digging a little deeper it becomes clear that if it isn't actually a scam, then it's a pretty reprehensible form of ambulance chasing.
I can imagine a small company, with short term cash flow problems, being a few days late paying a supplier with whom there is ample goodwill to allow for this. That supplier then fails at some much later date and suddenly the small company has a liability that it never envisioned for interest and compensation on a debt that was settled several years ago.
This is surely wrong.

Well, this act does state that if you are not paid on time, then the company can claim the compensation and interest.

However, I do believe that this act is really unenforceable at this moment in time.

Good luck to this liquidator, yes they have a point, but how on earth are they going to enforce it ?

Have you asked them for copy invoices, copy proof of deliveries with date of delivery, confirmation of bank lodgement dates, a copy of signed terms and conditions stating credit terms, have you stated that it is your payment terms which apply and you have indeed paid according to terms, etc, etc. Are they really going to go to the bother of providing this informtion ? Do they even have this information ? Can they prove the debt ?

I believe that late payment law is not a get rich quick scheme, but is a case by case basis, but this matter is really still to come before the courts in any real degree. The legalisation allows for the judge to remitt the interest any how

Having read and re-read the interesting response from James it strikes me that what he is suggesting may be something one would do to weasel out of an invoice one didn't want to pay but not a great approach if you value your business reputation.

Phil's original post stated:
"a couple of small invoices that were paid in full about 42 days after the date of invoice"
That being the case trying to reopen paid invoices and make the Claims Company busy trying to prove invoices long since paid is not a sensible approach.

Invoices were paid late and you have been caught with a couple of claims. Surely you should pay up and then immediately visit your own ledgers and pick out former customers who paid your invoices late and issue late payment claims to them.
They could pay you and then do the same with their late paying customers ad infinitum.

Although the sums involved are small, it's the principle of the matter that concerns me.

Our business is a "learned society" and virtually our sole source of income are the subscriptions we get from our members. We can't apply the terms of the act to them - for one thing they are generally not businesses but individuals. In any case, if we tried such a policy, they would simply cease to be members. It's not unusual for us to have to wait up to 3 years for payment.

I have to accept we are not the best payers in the world, but we usually negotiate some payment arrangement with our (very few) suppliers, who understand our cashflow difficulties, and are very supportive.

However, if any of them went out of business (and it certainly would not be as a result of the tiny sums involved in transactions with us), we could be held liable for late payments that were fully agreed at the time. This cannot be right.

Surely there should be some defence in that payment delays had been agreed.

Incidentally, I have communicated with the agent making the claims, but so far (about 2 weeks) there has been no response.