Are uk importers liable to claims for interest from overseas suppliers?If no credit period has been agreed, then the act sets a default period of 30 days after which interest can run. Part 1 - how to calculate late payment interest.

Claim s can be made once a payment is deemed late. Will european affect our right to claim interest? The late payment of commercial debts interest act 1998 gives small businesses the statutory right to claim interest on late payments from other businesses. A supplier is free to decide whether or not to make a claim for interest or compensation for debt recovery costs. The delivery of the goods or the performance of the service by the supplier; or. Credit cards for people with bad credit rating. The above is a brief outline of the act but should you require further information please contact janet lewis, purchasing officer, 275 2160 or e- mail.

The default period runs from the day that some of the goods are delivered or part of the service is performed. The information on these pages is provided free and for information only, and is provided 'as is'. The second part will deal with contract terms. Debt after a death in the family. Statutory interest ceases to run when the interest would cease to run if it were carried under an express contract term. If the contract is made under a law of the uk, the terms of the act apply.

The creditors should check whether the debt qualifies for the application of interest under the late payment of commercial debts interest act 1998. The late payment of commercial debts interest act 1998 commencement no. 2. Unsecured loan with poor credit. If the purchaser pays part of the debt owed the part- payment will first go to reduce the amount of interest owed and then the main sum owed. Your rights and how the changes to the late payment legislation has affected them.

The interest rate set by the government is 8% above bank base rate. The government has introduced legislation to give business a statutory right to claim interest when another business pays its bills late. Late payment of commercial debts interest act 199.

B "representative body" means an organisation established to represent the collective interests of small and medium- sized enterprises in general or in a particular sector or area. Do i have to charge interest when people pay late? A print version is also available and is published by the stationery office limited as the the late payment of commercial debts regulations 2002 , isbn 0 11 042541 3. In 2002 the government introduced amended late payment legislation. If the contract states that payment is to be made by instalments statutory interest runs from the day after an instalment is due. What is a building society. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify. Previous page: bailiff action return to main next step menu.

The right to claim interest for late payment. It is an important step in improving the payment culture in the uk. If you are unable to satisfy any one of the above conditions, then this new act will not help you, and the previous rules will continue to apply.