Contract vs Statutory - Time to Re-write your Terms

There has been much debate over the years regards the effectiveness of the Late Payment of Commercial Debts Act and the EEC is currently about to mandate an update to the EC Directive.

Taking this into account I have been advised to review my terms of engagement and remove any reference to Contractual interest charges (even though these state 8% over the Bank of England Dealing Rate) and instead rely on the statute which is in theory easier to litigate against and equally harder to defend against, whilst also opening up an indefensible avenue to Statutory Charges.

Comments from all parties is much appreciated

If no agreement on payment terms or interest is in place the courts go by 30 days payment terms and 8% above bank of england base rate for interest charges. If you agree to different terms in a contract with your customer, make sure they are fair. If you have signed nothing and have nothing in writing in regards to an agreement, there is nothing in place to stop you claiming and for up to 6 years.