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Chris Cottrell

  • Posts: 3162
interest charges
« on: May 14, 2007, 06:57:14 pm »
We have a residential customer that has owed us money for some time now.  We have told them we will put an administration charge on top of the bill if they still do not pay.  If this does not work can we legally threaten to charge interest for as long as this goes unpaid.

Failing this what other avenues do we have open to us?

Mrs Chris

niceandclean

  • Posts: 1897
Re: interest charges
« Reply #1 on: May 14, 2007, 07:02:37 pm »
Its up to you as its your terms and conditions for your business!! But we say if we do not recieve payment within 30 days of the clean date, (mainly for business customers) we add £5.00 per day admin charges! Never had a bad residential payer!

Alex Wingrove

  • Posts: 1435
Re: interest charges
« Reply #2 on: May 14, 2007, 07:03:36 pm »
ha

i do 1% for every week over 28days, not alot but people dont realise that, they just pay

Chris Cottrell

  • Posts: 3162
Re: interest charges
« Reply #3 on: May 14, 2007, 08:29:01 pm »
Does anyone know if this is legal to add a percentage on.  It's not illegal like the banks charges that have been highlighted lately?  I'd hate to send a strongly worded letter and then be pulled up on it.

Should it be put into the terms and conditions first so that the customer sees this and is forewarned or is just having "Terms and Conditions apply" on Chris' slips enough?

mark dew

  • Posts: 2901
Re: interest charges
« Reply #4 on: May 15, 2007, 12:10:17 am »
hiya chris, i used moneyclaim couple of months ago. It says about interest:

Q. Do I need to tick the box about reserving the right to claim interest?
A. If you wish to claim interest in you claim you will need to tick this box and then copy and paste the pop up box that appears into the particulars. You must ensure you complete the brackets in this paragraph correctly to enable you to claim interest.

Q. How do I work out the interest I am entitled to?
A. If you are claiming interest under section 69 of the county courts act 1984 you must multiply the amount you are claiming by 8% and then divide this by 365. This gives you the daily rate of interest. You must then work out how many days have passed since the date the invoice was due until the date the claim is issued. Not only must this be stated in the particulars of claim, but this figure must also be added to the amount you are claiming. 

When making the claim, i didn't add interest and i put who i was claiming against as the claimant and the defendant, but she paid up within day of receiving the letter from the courts.
Because i'd filled in the form wrong, the claim was invalid anyway. But she paid + the £35 charge to register the claim.