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  7. T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please
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T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please

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9 years 7 months ago #1814 by crsuper
T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please was created by crsuper
Hi there,

My company (mainly) issues invoices on a monthly basis. Our standard T&Cs details clauses about charging interest on overdue invoices (we have 30 day terms). On occasion we have charged this for consistent late payers but as it's only ever a few pounds it's hardly worth it.

My question is, am I also entitled to charge the fixed penalty as well even if it's not in our T&Cs, ie the £40, £70 and £100 charges?

I will add this to our T&Cs from now on but I am wondering if I can do this to already signed up customers.

Thanks in advance.

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9 years 7 months ago #1815 by David J
Replied by David J on topic Re: T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please
Hello CRSUPER

The legislation uses a default of 30 days if no terms are in place. Although you have terms (which state the same pewriod) this does mean that you cannot claim interest, compensation AND any additional collection fees on late paid debts. You can even claim compensation on invoices that are paid, but were paid late going back 6 years.
As the legislation is statute, it is not necessary add this information to your terms but to make it clear for your clients in the future, you can add that compensation will be charged plus the amounts involved to your Ts & Cs.

Best regards

David

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9 years 7 months ago #1816 by crsuper
Replied by crsuper on topic Re: T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please
Thanks for clarifying David. I have prepared a 1 page "late payment information" sheet for this persistent late payer to explain the breakdown of interest plus fixed penalty charges. All in, it amounts to £1k.

I shall however add this to our T&Cs for all future customers to make it crystal clear.

Thanks again!

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  1. Forum
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  5. The late payment of commercial debts (interest) Act.
  7. T&Cs details interest penalties on overdue invoices but not fixed penalties - advice req'd please
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