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Debt recovery costs

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10 years 8 months ago #70 by ltaylora_tech@btinternet.com
Ok folks,

1) The late payment act states it is £40 per invoice up to 999.99. £70 above this amount and £100 above £10,000

Each invoice is an individual debt.

The law is the law. My advice would be to claim for every single penny you can. But only do this if you don't intend on working for or getting any work off them again.

This is half the trouble, people do not use this law because they are afraid of the harm it could cause to future relations. The 1998 act was not enough it did not work, it was changed in 2002. Do you really think that being able to claim £40 on a debt total of 999.99 is going to be enough to make people pay on time? No its nothing and not worth the hassle of going to court for is it? £40 per invoice, that is the law.

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10 years 8 months ago #72 by office@adminandsupportservices.co.uk
I regularly collect £40.00 compensation charge on each overdue monthly invoice. Each invoice is for £35.00.


Philip

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  • Chris Harvey
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10 years 7 months ago #105 by Chris Harvey
Replied by Chris Harvey on topic Re: Debt recovery costs
HI Beverley

In the absence of mutually agreed alternative terms, they can only apply interest after the default period stated in the Act which is 30 days. So you have good grounds not to pay this interst it seems.

Chris

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10 years 7 months ago - 7 years 8 months ago #110 by jimbo22
Replied by jimbo22 on topic Re: Debt recovery costs
Firstly, it is not £40 per invoice, it is £40 per sales order. An order may have more than 1 invoice.

You might not claim just one £40, but you might claim £40 against against all the invoices/sales orders paid late over the last 6 years, even if these invoices have been paid.

Do the maths !

But still this law is untested, and until it is tested in the highcourt, it is right to say it is a waste of time.

Again, when will a case be taken to courts to settle and prove the matters. Anybody/ small business got around £30K spare to pay and maybe more if costs are awarded against you for bringing such a stupid case to try and prove the law.

Who is going to pay the legals for a test case ???

Until then, any businesses trying to impose late payments are wasting their time. It doesnt work ! Forget it until it is tested !

A small claims is still not good enough, it needs to be settled in the high court.

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10 years 7 months ago #111 by David J
Replied by David J on topic Re:Debt recovery costs
Hello James

Although the act is far from ideal, there are many businesses successfully using the legislation and many more who could use it but are unaware of their statutory rights. I would not say that it is a waste of time and that it doesn't work. However it certainly could be made to be more effective.

I would like to get a 'legal' opinion on your question and I have talked to firms to help out on the forum. Unfortunately 'voluntary' and 'free' are not words that sit well with most solicitors! So if there is a law firm out there who would like to help, (free) then they are more than welcome to contact me!

Changes to the legislation are currently being discussed at the European Parliament so this could be a chance have something to say about what those changes are.

I would like to propose that either a section is added to the Forum to allow users to voice their opinions of what they would like to see changed in the legislation, or a survey is created. This will allow users who have a strong opinion about the negatives of the act to contribute as to what they think should be done to improve the legislation and make it more effective.

David

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10 years 7 months ago - 7 years 8 months ago #112 by jimbo22
Replied by jimbo22 on topic Re:Debt recovery costs
I sat in a court room last year on this subject ( Small claims ). The judge stated that he was surprised that since the legalisation came into force, 1998, he had not one case on the subject of late payment. 12 years, one court house, and zero cases.

There well may be businesses out there using the legalisation, but it still remains the fact, what do you do when the customer ignores your late payment demands ? Forget about or go to court and what will happen when you go to court to try and enforce your demand?

1. Who's terms apply.
2. If the customer always paid late - is this accepted as normal practice ?
3. If the customer says his terms are payment in 60 days, you the supplier have 30 days on your invoices - who's terms ?
4. Customer lost their invoices and just waited until you chased them - who's fault theirs or the supplier ?
5. The judge might say that the supplier is out of order for claiming late payment and in the interest of justice he kicks out your claim, and orders you to pay the costs of the other party. What now ?

The legalisation CANNOT be enforced. The law should be scrapped or a test case taken to the high court tO settle the grey areas. Until then businesses using the legalisation should BEWARE ! as they might end up with wasting their time and paying costs !

IF THIS IS ENFORCABLE, CAN WE HEAR OF SOME ACTUAL COURT RULINGS ?

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