Compensation charge

Am I correct in assuming that the compensation charge only applies to unpaid invoices which have not been settled and that interest only is payable on invoices that have been paid after the due date?

The interest calculator still adds the compensation charge along with interest even though I have entered the date the invoice was paid?

Many thanks David

That is a great help as I misunderstood and thought that compensation was only payble if the outstanding ammount remained unpaid. I had been chasing a customer as their account was 36 days overdue and received a cheque in the post this morning along with a note saying that because of 'my unreasonable behaviour' they would be no longer using my company.

I have carried out 4 jobs for this particular company with each invoice not being paid in accordance with our terms of payment and with every invoice being overdue. As a matter of principle and to demonstrate why companies like this should pay on time I will now excercise my right to claim interest and compensation for all 4 invoices. Hopefully this will encourage this company to pay on time with future suppliers.

Many thanks for putting together a great website and helping the working man to fight back against those that exploit small businesses.

Best regards

Gordon

Yes David, it would appear that if you request payments be made on time and in accordance with your terms of payment then you are considered to be 'unreasonable'.

I have been trading since 1979 and I certainly don't want or need customers who are not prepared to pay their bills on time, so it's no great loss. I would have let this pass but for the arrogant manner in which the financial director dealt with the matter and the note he attached with my payment.

Having received payment some 36 days late I decided to go back over the past 6 months to check how late previous payments had been made and exercise my right to claim interest and compensation for all 4 invoices, which totalled £20.02 in interest plus a one off £70.00 compensation claim subject to the claim being settled within 7 days.

I received a cheque in the post today for £20.02 covering only the interest and not the additional £70.00 for compensation. I have written to the ex-customer to inform them that if the outstanding £70.00 is not paid within 7 days that I will issue court proceedings for the outstanding amount.

I appreciate that it's a lot of aggravation for £70.00 but this has now become a matter of principle in the hope that companies like this will appreciate the need to pay on time or otherwise they and not the small business who has carried out the work will be penalised if they fail to pay in accordance with the terms of payment.

What are your thoughts on this David and do I still have a genuine claim for compensation?

Regards

Gordon