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Stating Late Payment Fees in Contract.

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11 years 3 months ago #1006 by BishopS0411
Stating Late Payment Fees in Contract. was created by BishopS0411
Hi,

I've been working for the same company on and off for almost a year now and in that time, they've not managed to pay me within the stated period (standard 30 days terms) once.

Every time I have a battle to get them to respond to me, then usually after a month or so, payment turns up.

I spoke to the compamy I use to process my payments the other day, asking if they had any advice on introducing a late payment fee and they said that I couldn't, as it was not stated in the original contract.

Is this correct? Do I really have to add a line to my contracts in future?

Regards,

Steve B

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11 years 3 months ago #1007 by Safe_UK
Replied by Safe_UK on topic Re: Stating Late Payment Fees in Contract.

Hi,

I've been working for the same company on and off for almost a year now and in that time, they've not managed to pay me within the stated period (standard 30 days terms) once.

Every time I have a battle to get them to respond to me, then usually after a month or so, payment turns up.

I spoke to the compamy I use to process my payments the other day, asking if they had any advice on introducing a late payment fee and they said that I couldn't, as it was not stated in the original contract.

Is this correct? Do I really have to add a line to my contracts in future?

Regards,

Steve B


Hi Steve,

The short answer is no, you do not have to include a mention of the late payment legislation in your contract to be covered. Put simply, its the law.

However, if your contract has alternate provisions for dealing with late payment then generally, these would take precedence. provided of course these terms provided a "substantial remedy".

Hope that helps :)

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11 years 3 months ago #1008 by David J
Replied by David J on topic Re: Stating Late Payment Fees in Contract.
Hello Steve
As safe Collections state, this legislation is statute law and you do not need to mention on your invoices that you may use the legislation if you are not paid within your agreed terms. If you have not agreed terms, then the default is 30 days from delivery of the goods/services or from the date of the invoice. I'm surprised the company who process your payments are not aware of that. Actually I'm not surprised at all!
Perhaps you should point them in the direction of this website.

Regards

David

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11 years 3 months ago #1009 by BishopS0411
Replied by BishopS0411 on topic Re: Stating Late Payment Fees in Contract.
Thanks very much for the feedback. Much appreciated.

What are the limits in terms of how far back I could go? If I'm going to hit them with a bill, I may as well go for the entire amount!

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11 years 3 months ago - 11 years 3 months ago #1010 by David J
Replied by David J on topic Re: Stating Late Payment Fees in Contract.
Based on the Limitations act 1980, you can go back 6 years and claim interest and compensation on each invoice that has been paid, but was paid late, and of course, unpaid invoices.
it's also worth noting that any invoices after March 16th 2013 can have extra costs of recovery added to the claim. So for example, the cost of using debt recovery experts such as Safe Collections can be added to your claim.

If more of the late payers knew about this particular part of the legislation, they may think twice about paying suppliers late.

Some companies who think they are cash rich by paying late could actually be insolvent if all suppliers decided to exercise their right to interest and compensation on late paid invoices....

Regards

David

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