Statutory Interest on Motor Repair Bill

iQueen

Does a motor repairer have a legal right to charge 15% interest on a late payment?

From various legal advice websites, I understand that, under the Late Payment of Commercial Debts (Interest) Act 1998, amended 2002 + European Directive 2000/35/EC, Statutory Interest can only be charged on late payments between businesses, and consumers cannot be charged under this law.

Is this correct?

iQueen

BargainGalore

Not sure by I would hazed a guess and say no at current rates.

http://www.payontime.co.uk/legislation/legislation_main.html

Perhaps pay then going commercial rate plus costs of work via a cheque with a letter saying in full and final settlement and let them try and sue you for rest, if they cash cheque no case to answer

Tozer

It applies to business to business debts only. However, if you signed up to terms and conditions, they may have the right to charge interest for late payment provided it is not penal in nature.