Could anyone help?

Hello, could anyone shed any light on this..

We recently stopped using one of our suppliers and to spite us! the supplier has invoiced a long list of penalties, in line with the Late Payment of Commercial Debts Regulations 2002.

Admittedly we have paid late on many occasions in the last 5 years but this has only been 2 to 7 days beyond their 14 day period.

Their invoice is for around £1800 in total!

It seems very harsh to hit us with this at this late stage. Had they invoiced us for £40 after the first late payment several years ago, I doubt we would have made many late payments after that.

Does anyone know if we have a chance of defending this in court?

Or shall we make a settlement offer and avoid court at all costs?

Thanks for any help much appreciated.
Harry.

Firstly,

a) What are their credit terms ?
b) Did you sign terms ?
c) Why did you change suppliers ?

a) 14 days.

b) Yes.

c) We switched to a cheaper supplier to help cut costs.


Thanks..

Do they have late payment in their terms ?

If you have signed terms and late payment is part of these terms,

Options:-

A) Pay the charges
B) Ignore and wait for court action, then you will need to pay the court charges, which will be small
C) Return your business to them and negotiate the terms better, to have the charges waived.

Sounds as if they have you :-(

No, there was no mention of any compensation or penalties in their terms, they only stated interest charges.

But they say that the Late Payment of Commercial Debts Regulations 2002 give them the right to charge the compensation penalties even though it wasn't in their terms.

They say it is a statutory entitlement.

Can they do that, do we have to pay by law?

Yep !

You will have to pay, this is statute law, just like going through a red light - the amounts are set.

I suggest:-

1. Try and do business again and offset these charges and negotiate better terms.
or
2. Wait until they issue court papers.

3. Then, Make them an offer to settle.
or
4. Go to court, just check what costs you will be responsible for, make them an offer to settle
or
5. Let the judge decide if it is fair