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Hello my name is ***** ***** I will help you with this.
What is the £150 made up of please?
Did you sign a contract agreeing to pay for costs etc?
Ive no idea TBH. I signed a standard credit agreement when i opened my account with the merchant some 4 years ago. There is no break down for the £150 costs. I can forward you the letter I received?
If you can attach it here that would be great
Was this the first time they demanded the interest etc?
Yes. The only other demand was a commercial debtor compensation cost. About £50 if memory serves!
When were the invoices due?
The original invites were due a few months ago. I was waiting payment from my customer to pay but they were having financial problems. I offered to pay the merchant £2k there and then with the other £2k to follow shortly after. Th branch manager said he'd have to get back to me as their accounts have demanded the full payment. He got back to me a few weeks later by which time all this had escalated. Also to make things more complicated theres the credit issue. I can and will pay but as I've alway been waiting on them for a reply. And again now, i spoken to the manger regarding the letter and he knew nothing about it. Theres zero communication.
Interest is owed from the date the invoice should have been paid.
Under the Act are you liable for:
- £70 lump sum
- 8.5% interest from the date it became due until you pay it
But what you can do is pay the outstanding invoice amount.
Then they can NOT wind up your company as threatened
But you do owe the £70 fixed compensation and 8.5% interest.
Please use this calculator to work out what is owing>
Can I clarify anything for you about this today please?
What about the £150 recoverable costs they're demanding?
No - its not recoverable.
isn't there a process they must follow or can they just do as they please!? Ive always been waiting for them to contact me and all i get is letters in the post demanding more money, not the phone call id been promised!
No, there is no process they need to follow. The Act states they are entitled to fixed cost compensation (£70 in this case) and interest from the date the invoice becomes DUE
If they want to pursue it, they have to take it to Court.
But if you pay the debt (less the costs) the only way they can pursue it is in the County Court as a small claim
They can't wind you up for the £150 plus interest
Does that help?
can you pen me something to state the reason why i don't need to pay the £150
Because the law does not require it.
The Late Payment of Commercial Debts (Interest) Act only states £70 is due plus interest.
Does that clarify?
ok cool many thanks