Ignoring Interest

I have had a lot of trouble getting payment out of a company I contracted for, so much in fact I left the job because of it.

They still have 5 invoices outstanding and they are paying me at a rate of one invoice a month.

My contract said payment terms were thirty days, and all invoices I issued said thirty days.

I have been adding the late payment fee to my invoices but they just ignore the interest.

So when they get around to paying the invoice they just pay the original price.

At this rate it will be March 2011 when I see payment for all the work I have done.

What can I do if they ignore Late payment fee's?

Thanks for any advice

Stace

Firstly, suggest you avoid the language "left the job" because that implies they 'employed' you rather than you ceased to provide further services.

Have you actually advised them that you are applying Statutory entitlements in accordance with the Late Payment of Commercial Debts (Interest) Act 1998? If not you should advise them in writing to this effect.

You should then advise them of your calculation of interest and compensation and that in respect of already paid invoices if the further amount is not settled you will seek legal redress and give them 7 days. If that does not work.then send a final demand and Letter before Action giving them a further 7 days and then after that issue proceedings in respect of the statutory entitlements.
The actual issuance of a County Court summons for those paid invoices may make them reconsider not only the unpaid debt to date but the entitlements of current unpaid invoices. Equally you can raise a County Court summons on all unpaid and paid debts.

Following on from goldmans excelant advice.

If you have no joys you may commence the action through www.moneyclaim.gov.uk
This is the County Court poratl which is very fast and efficient especially for Small Claims (under £5,000). You can track the whole process online including the appointment of Bailiffs if the you are awarded judgement and the debtor still refuses to pay

AFAIK you cannot use moneyclaim on line to claim statutory entitlements unless they are being claimed at the same time as the unpaid invoice. That is, I do not believe you can use moneyclaim to just claim statutory entitlements.

goldman wrote:

AFAIK you cannot use moneyclaim on line to claim statutory entitlements unless they are being claimed at the same time as the unpaid invoice. That is, I do not believe you can use moneyclaim to just claim statutory entitlements.

We know of clients who have successfully issued for late payment charges alone in small claims, but we could not say if they used moneyclaim online.

And many of the "free" collections agents offer this service in return for the right to sue your customers solely for the late payment costs and interest if it remains unpaid.

May we ask where you got this idea/info from Goldman? :)

I am a senior legal advisor of a firm specialising in debt management. We do raise claims for just statutory entitlements but not through the process of moneyclaim as we had always understood that despite section 4 of Practice Direction 7E www.justice.gov.uk/civil/procrules_fin/contents/practice_directions/pd_part07e.htm#IDAWDOVB

that moneyclaims could not be commenced solely for statutory entitlements but could be if the invoice is still unpaid.

I will revert if I get an answer directory from moneyclaim. Currently 15th in queue!