Legality of interest charges of decorating work

Ramjet1000

Hi Folks
Hoping for some quick advice on this one.

Just had a decorating firm in to do some work following a leak from upstairs flat.

The work was all ok, and they've now sent the invoice of just over £1,000

Our block of flats is run through a management agency for all insurance jobs. They've said that their next cheque run to pay them is tomorrow but the firm are saying that the deadline is today (3 days from issue of invoice) or I'll incur £60 interest per day.

This sounds ridiculous to me.
This interest charge wasn't highlighted at point of agreement or when the invoice came across last Thursday afternoon (although they did say payment should be made within 3 working days)

The first I knew about it was yesterday when they chased the payment (after I'd told them the cheque run was tomorrow) although there is a T&C on their website but is hidden away and wasn't made clear at any point of contract agreement and isn't on their original estimate or invoice.

I've just had another email highlighting the interest payment again so any advice more than welcome, as I don't want to be liable for interest until the cheque shows up from the Management agency.

Thanks as always folks

maninthestreet

So you don't have a contract with any terms and conditions written down? If not, they are going to have a hard time enforcing these punitive interest charges.

iamcornholio

It's not a commercial arrangement, so the firm can't claim interest from you

Ramjet1000

Could you clarify the meaning behind the commercial arrangement post please?

keystone

Ramjet1000 wrote: »

Our block of flats is run through a management agency for all insurance jobs.

Then let them argue with the firm.

They've said that their next cheque run to pay them is tomorrow

Thats fine and between the management company and the decorator then.

but the firm are saying that the deadline is today (3 days from issue of invoice)

No it isn't thats an unfair contract term IMHO. 14 days would not be unreasonable. Bet they buy on net thirty days and I bet they pay against statement not against invoice.

or I'll incur £60 interest per day.

No you won't the management company will if these matters are handled via the management company they are party to the contract with the decorator not you. Anyway another unfair contract term.

This sounds ridiculous to me.

It is.

This interest charge wasn't highlighted at point of agreement or when the invoice came across last Thursday afternoon (although they did say payment should be made within 3 working days)

Good for them its still unfair. Post office can take 5 days to deliver so called first class mail these days to the next street.

The first I knew about it was yesterday when they chased the payment (after I'd told them the cheque run was tomorrow) although there is a T&C on their website but is hidden away and wasn't made clear at any point of contract agreement and isn't on their original estimate or invoice.

That sounds like deception to me.

I've just had another email highlighting the interest payment again so any advice more than welcome, as I don't want to be liable for interest until the cheque shows up from the Management agency.

If its the management company that are paying I camn't see how you are liable for any interest whatsoever. Tell them (write don't ring and don't email) you consider what they are doing to you to be harassmant and unless it stops you will be seeking professional advice.

A quick chat with Trading Standards would be a good idea in the morning to be sure of your ground first though.

What you must avoid at all costs is the management company paying up and then coming after you for the interest - get them on side. Punitive interest rates are usury and whilst it may not now be illegal in the UK its certainly immoral. Bet the papers would have a field day if you just happened to mention it to them..

Cheers

iamcornholio

Business to business - commercial arrangement

In addition, three days to pay from invoice issue is most likely unreasonable, and so an unfair contract term - unenforceable

But more relevant, a charge of £60 per day does in no way reflect actual losses, and so would be termed a penalty, and again unenforceable under contract law.

Tell them to do one