Interest on late payment

Petlover

Hi,

I have just received a letter from my vet requesting payment for an item they hadn't told us there was a cost for on the day. It's not an issue as I think my husband misunderstood - however at the bottom of the letter there was a note indicating that after 30 days an interest charge of 1.5% per month would be applied. I hadn't realised that businesses were just entitled to apply a rate of interest without any contract. I have read their terms and it states payment on the day (which would have been made) and there is no mention of interest. Is this just permitted? It's ok now because we'll pay the amount but for future reference it would be useful to know.

Thanks and regards,
Pl

jonesMUFCforever

Yes it is.

Consumerist

jonesMUFCforever wrote: »

Yes it is.

I'm not so sure.

If you weren't advised in advance then I would suggest you pay the original bill without interest and dispute the interest charge.

Else, why not charge 10% per month or 50% per month, etc. ?

redpete

Consumerist wrote: »

I'm not so sure.

If you weren't advised in advance then I would suggest you pay the original bill without interest and dispute the interest charge.

Else, why not charge 10% per month or 50% per month, etc. ?

It sound like the letter is the notice that if they don't pay within 30 days interest will be applied, if they pay now (as the OP says they will) then interest won't be charged.

Consumerist

redpete wrote: »

It sound like the letter is the notice that if they don't pay within 30 days interest will be applied, if they pay now (as the OP says they will) then interest won't be charged.

So payment should be made within 30 days of the date of the letter. That sounds more likely.

Petlover

Hi,

Thanks for the replies - the letter was to indicate that we would be charged if we didn't pay in the next 30 days.

It's useful to know that businesses can opt to charge consumers interest on late payments without a contract - I was surprised by it and wanted to check - I work in the credit industry and with the regulation around credit interest on loans and current accounts being so tight I was surprised.

Thanks for the detail.

Regards,
PL

ILW

I doubt they could ever enforce it due to CCA. Common amongst business to business sales though.

paddyrg

It's a hollow threat, really. The customer can easily turn around, pay the original invoice value, and say 'oops we were late', then the vendor has to decide if it is worth the court proceedings and business badwill it generates. Cos let's face it, late payment or not, you're not ever going back to a shop that chased you for 1.5% or whatever, if you even bother to pay it at all.