Late payment interest & Compensation ?

I have a client who was invoiced on 5th March and payment was due on 19th march (terms 14 days). I've been chasing payment since April, however despite promises the invoice remains unpaid.

In July I decided to encourage payment by charging "late payment" interest of 8.5%, this was calculated at the daily rate, and as my accounts software automatically creates (Finance Charge) invoices I forwarded a copy of these each month to my client, accompanied by monthly statements in July, Aug. & Sept, But now the client is refusing to return my calls.

Reading through information on here it seems that maybe I should have mentioned the "Late payment of commercial debts (interest) act 1998" either at the time or prior to sending the statements.

I now intend to charge a £40.00 late payment compensation fee, but I'm not quite sure if I could just add it to the next statement ,if it should be accompanied by a letter mentioning the act or I I will have to list all charges on the next statement referring to the act.

I'm based in Scotland and my client is a Solicitor.

Any advice would be appreciated.

Alan.

I have read your recent post and whilst I sympathise with your plight I feel through your lack of knowledge of the subject you are making a bit of a hash of the matter.

Could I suggest that rather than go into the detail of what you should do it would be more productive if rather than waste more time on this matter you simply place the debt in the hands of a debt collection agency and let them pursue the matter for you.

You could then get on with what you probably do best i.e. running you business.

If an invoice has been overdue since April your customer clearly feels no urgency to settle and is obviously quite happy to "string" you along particularly when by now he he has worked out that all that will happen when he doesn't pay is that you send another sytem generated invoice with different figures on it and so on.

I should have added since your client is a solicitor why not hust report him to the law society!