Compensation charge

Many thanks for your reply David, I appreciate that you are unable to comment on specific claims, but just need some general guidance and advice regarding the validity of my claim. As far as I'm aware I have undertaken all the correct procedures, with invoices, clearly stating our terms of payment, the date when the payment needs to reach us by, the methods of payment and a notice informing customers that we reserve the right to charge interest and compensation in the recovery of overdue accounts if we are not paid in accordance with our agreed credit terms.

Having read previous posts on the forums I thought that I was correct in my assumption that I was still entitled to the compensation charge despite having received payment for the interest that I charged on the invoices which were paid late.

I considered that I was being fair in only charging a one off compensation charge of £70 for the last invoice, which totalled £ 1,100.14 rather than making separate compensation charges for all 4 invoices which would have amounted to £220.

However, it stated on the invoice that I sent in respect of the interest and compensation charge that I would withdraw my offer of a single compensation charge if payment was not received within 7 days. I feel that I have demonstrated my willingness to be fair on the matter of compensation and have given the client the opportunity of accepting a reduced charge; it would appear he is unwilling to pay any amount of compensation.

Having paid the interest, the client has surely accepted liability of my claim but will not accept the compensation charge, which I will need to claim through the court. My dilemma is, do I make a claim for compensation for the full amount of £220 or stick with the single £70 compensation charge?

Before proceeding with court action against the client, what are your thoughts on how I should proceed with my claim?

Regards

Gordon

Hello David

Following my letter to the client I was very surprised to receive a cheque for the balance. I can only assume that either the accounts manager was playing dumb in the hope that I would not pursue my claim but having sent a letter with the threat of court action, he has taken the time to look at the legislation, knowing that the company have no defence to offer in respect of my claim.

Definitely a moral victory for me and one up for small businesses like mine. I hope this will make companies like this take notice of the legislation and encourage them to pay their bills on time.

Thank you to you and your colleagues for producing a very informative website, which has been of great assistance to me in the management of my credit control.

Regards

Gordon