You've just had the information.. Please answer the question
Ok, I want to add interest onto this claim.
Based on what is in my T&C's, can I levy an admin charge of 5% of the total owed and can still add interest at 3% daily?
Or is that 3% annually which is divided by 365 and then multiplied by the number of days late?
Thanks. The way that it’s worded, it is 3% over the Nat West base rate annually divided by 365 and then multiplied by the number of days late.
Fortunately, that is what it says because if it was 3% per day, that is not enforceable and would be struck out if it went to court. The reason is that it would be deemed to be a penalty and penalty clauses are not enforceable in English law.
The 5% single payment is possibly enforceable provided it relates to an administration charge in dealing with the late payment. However in this case, that is £1150 and would also be seen to be a penalty.
If the debt was say £2000 then 5% would be reasonable and would be enforceable.
Can I clarify anything for you?
Thanks for that. So in terms of the 5% admin levy. can I add this on based on my T&C's?
Also, could I revert to 8% even if my terms say 3% given that this is law?
The claimant claims interest under section 69of the County Courts Act 1984 at the rate of8% a year from 17/11/2014 to 26/11/2014 on£23,555.70 and also interest at the same rateup to the date of judgment or earlier paymentat a daily rate of £5.48.
The 5% would be unenforceable because it’s disproportionate to any admin costs.
Your terms and conditions say 3% over base rate and that’s what applies.
The fact that the court rate is higher means that you have actually done yourself a disservice.
You can claim higher amount but it could be disallowed
The way you have calculated it is correct though apart from the interest rate
Thanks for your help.