charging interest and admin fee

bexlee82_2

Hi All

I need some help. Me and my husband run a small business. We work for museums schools, Young arch clubs etc. One invoice for £80 was due back in May and still hasn't been paid. on the booking form it states that if the payment is not paid within 30 days, then a £30 admin fee and 8% interest will be charged, the booking form was signed so they agreed to it. However, i have chased it up again today staing that it is still owed and they have come back refusing to pay the charge and interest. i don't know where i stand. is it worth hassling them about £38 that they are refusing to pay??

Thanks
For the help.

paulwf

bexlee82 wrote: »

is it worth hassling them about £38 that they are refusing to pay??

Thanks
For the help.

There probably isn't a right or wrong answer but what I would do personally would be say to them "if you pay now I'll waive the extra charges". The alternative is they will dig their heels in (imagine it the other way round, would you pay an extra £38 on an £80 invoice?) then it will get messy with court action threatened and you'll lose goodwill etc. All the time and emotional energy you expend on it would generate 10 times more profit being used on moving the business forward.

I think sometimes in business you have to forget about point scoring and who is right morally and see the big picture, you want to work out what path will make you the most money.

I'm sure others will disagree and will chase the £38 though which is fair enough

lincroft1710

paulwf wrote: »

I'm sure others will disagree and will chase the £38 though

I won't, I agree with you Paul.

paddyrg

It's not worth the stress for £38, and you will lose goodwill. Just give them a call and say 'Tell you what, drop me a cheque today and I'll write off the £38' - those charges are only really any use as a bargaining chip anyway.

bris

The banks no longer get away with charging excessive fees, so I can see why they won't let you. £30 is fine if you can justify the work required to cover this, sending a letter is not worth £30, 8% interest is also way above what is now reasonably expected in todays terms. 4% could be reasonable.
Just because it's in your T&C's doesn't make it fair and they know it, you may have to go to court to see if they agree with you. They didn't agree with the banks so I wouldn't hold out much hope.
You also risk future business dealings with them if you stubbornly refuse to drop the charge, to protect any future dealings with them (if you want other business from them) I would say a clerical error has been made and drop the penalty.

hippyadam

I agree with paulwf,

But...

You are actually legally entitled to add £40 in late payment costs and interest at 8% above the BoE base rate daily.More info on the payontime website

& Bris, I don't see why you state the charges are excessive when it's less than the amount the OP would be allowed to add under UK law :P

purplephoenix85

You have the right to pursue the interest and charges, as this is what was agreed at the time of booking. In your favour, this is a breach of contract and can reasonably be chased up and a letter sent out stating you may take legal action. With it being £38, I don't see the point in dragging it out to the small claims court, but they must see this is a breach of contract and you are within your rights to receive some sort of remedy for the outstanding amount...

If all else fails, ask your people to get in touch with their people about small claims court and file if necessary - show them you mean business - and see how quickly they would prefer to settle this matter out of court Other people have been 'sued' for less!