Case Law

Is there any case law relating to the Late Payment of Commercial Debts (interest) Act?

The defendants in my situation have now paid the principal debt, but only after I issued my claim in the County Court. However they are now saying that they should not be liable to interest or a late payment fee, even though the debt was five years old, due to the fact that I had not chased them enough for payment during this five year period the debt was outstanding.

It is our understanding that once late payment charges are added, they are deemed to be paid first.

So technically the amount you are pursuing is the remainder of the original invoice, NOT the late payment charges.

Frankly the claim you did not chase them "enough" is laughable and we can not imagine an experienced Judge falling for it...

That is most interesting.

I wonder if yu have any authority for this? I would like to go to the judge, properly armed.

Hi Owen,

Case Law surrounding the legislation is thin on the ground, however the legislation itself is clear that:

(3) The obligation to pay an additional fixed sum under this section in respect of a qualifying debt shall be treated as part of the term implied by section 1(1) in the contract creating the debt.”

Charges, once added, are seen as a contractual obligation as far as the legislation is concerned.

Please note, we aren't solicitor's and the above is based on our practical understanding of the legislation.