What if they wont pay?

Hello Karl

If a customer pays the debt but ignores the compensation and interest then that payment is used to pay the compensation and any outstanding interest first. The remainder pays off the invoice.

Because part of the invoice is now effectively partially paid. Interest and compensation will continue to accrue at the daily rate of the full amount.


Total invoice = £2,800.00
Total days overdue: = 109 days
Interest rate used: = 8.5%
Daily interest rate: = £0.6521
Total Interest owed = £71.07
Compensation: = £70.00
Total owed to date: = £2,941.07

Taking the example above, if the debtor only paid the invoice total, the result would be this.

Total invoice = £141.07
Total days overdue: = 109 days
Interest rate used: = 8.5%
Daily interest rate: = £0.6521
Total Interest owed = £00.00
Compensation: = £00.00
Total owed to date: = £141.07


If the remainder of £141.07 remains unpaid, then interest will continue to accrue the next day at £0.6521p per day.

After 30 days, the amount owed would be: £160.63
After 6 months the amount owed would be: £258.45
After 1 year the amount owed would be: £384.83
And so on.

If the debtor has paid an invoice but not compensation and interest, then I cannot see what their argument would be if a creditor went to court to claim what they are entitled to.

As Karl says, if someone has been through this process then it would be nice to hear about it.

Regards

David

Hello Alex

Best place to start is to read the users guide .

Here is a link to the legislation on the legislation.gov website .

As Karl has pointed out, it is very important to have all supporting evidence. Particularly if you are going to claim retrospectively.

Regards

David