Overseas Debt

Hi

I have a question, which is, does the legislation require both parties to be UK based, as I also have a client in South Africa which is also paying late.

Many thanks

Dave

Hi Dave,

For a debtor based outside of the EU it's a grey area as the act is somewhat less than explicit. If the contract states English law applies the answer is generally yes you can add UK late payment penalties.

But if legal action in foreign jurisdiction is required it is often best to only pursue the original claim without charges. As we have knowledge of cases that have been dismissed due to the inclusion of UK Late payment charges that have been viewed as illegal in foreign courts.

Although taking court action is SA is to be avoided if at all possible as the process can take years.