LETTER BEFORE ACTION
LATE PAYMENT DEMAND
LETTER
BEFORE ACTION
We send a formal letter to the debtor warning of court action if payment is not received within seven days. In most cases, this is enough to prompt the debtor into paying what they owe you, but if the debt is still outstanding, you can choose to instruct us to proceed with court action knowing the proper legal obligations have been met.
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To instruct us to send a solicitors letter before action, we only need the name and address of the debtor along with the amount that is owed to you.
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Letter Before Action only £25.00 + VAT
LATE PAYMENT
DEMAND
Alternative to the letter before action is a late payment demand. This allows you to claim interest, compensation and your reasonable debt collection costs under the Late Payment of Commercial Debts (Interest) Act 1998. You can do this provided both parties were acting in the course of business. We send a formal letter to the debtor warning of court action if payment is not received within seven days.
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Where an invoice is not paid or is paid late, the Act and Regulations 2002 & 2013 allow you to charge interest at the annual rate of 8% above the base rate for each day your invoices are overdue.
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You are also entitled under the same regulations to charge compensation against your debtor if an invoice is overdue by as little as a day. The compensation you are allowed to charge depends on the unpaid debt amount.
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Late Payment Demand from £25.00 + VAT.
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Compensation you are entitled to charge for due to late payment:
Size of unpaid debt: £0.01 to £999.99 Compensation: £40.00
Size of unpaid debt: £1,000 to £9,999.99 Compensation: £70.00
Size of unpaid debt: £10,000 and over. Compensation: £100.00
