charging interest on late payments...

[hamdogg]

Thanks everyone. If I have had no contact by tomorrow I'll be giving him 7 days notice of small claims proceedings. Hopefully that'll do the trick...

 

 

Have you not been round banging on his door?? I'd be straight there and wouldn't leave till it was paid!

[felixthelogchopper]

Thanks everyone. If I have had no contact by tomorrow I'll be giving him 7 days notice of small claims proceedings. Hopefully that'll do the trick...

 

Make sure you point out the extra charges and the CCJ

[Shane]

I might steal that if you don't mind!

 

Steve,

please be my guest. I hope you will never have to use it:thumbup1:

[Will C]

I recently had this.

My final letter - which led to immediate payment included this wording..

 

'I telephoned you and you said you would sort things out as there was an issue with your bank.

 

I subsequently wrote to you asking for payment by Friday 11th July. I have received nothing. If you do not arrange payment of the outstanding debt by Friday 25th July I will take legal action. You should be aware that this will substantially increase the eventual payment (to include court costs, interest and legal fees) and will result in a CCJ against you.'

 

Very good We sent a letter along the same lines and got payment with in 24hrs. Customer then rang up and asked if we could do another weeks work for him:001_rolleyes: he was told that we have plenty of paying customers so he was welcome to go to some one else:laugh1:

[daltontrees]

I have seen this situation a few times. Here's a couple of points to add to what people have already told you.

 

Doorstepping that amounts to harrassment will go against you in the longer term if it goes to court. By all menas go and ask but don't demand.

 

The interest is compound interest, the suggestionb made about how to calculate it is based on simple interest and will result in too high an interest payment. If you really need to know how to do it the way the banks do it, let me know by PM and I will send an excel spreadsheet that does it. You don't want to give the other side ammunition in a court case.

 

Your main problem is that the interest period is not defined. It is a very good idea to state that the interest period starts from x days after the date on which payment is first due, usually the date of invoice. Because you haven't defined the period, the courts would consider what is reasonable. One month is probably OK. You may still have to argue that this is normal and fair, it really ought to be in the quote rahtert han the invoice so that it is part of the contract.

 

The wording suggested about taking it to court would be better if it didn't say 'will result in a CCJ'. It should not be presumptuous, it shoudl say 'if [the action is] succesful it will result in a County Court Judgement against you that could affect your credit rating and could incur additional costs for you if it has to be enforced."

 

The courts will allow juducial interest to be added, but not if you are already charging interest. The key to getting the courts on your side for late iterest is to get the claim in, registered and served.

 

By the by, using email is arguably OK but it is not as good as a registered delivery letter. Ideally both.

 

And finally, it is best to issue an invoice and final demand with interest added than to ask for it in court for the first time or to threaten it in your next communication.

 

You are probably in a queue of creditors. Get to the front of it by appearing to be the least soft option for the debtor to ignore.